Quote:
Originally Posted by _Q_
Would it not be fair to assume that with more work coming down the pipeline, service companies will be in greater demand soon? Would that not allow for them to charge more for their services?
Am I missing something?
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That would seem logical, but in my particular industry (drilling) there has been huge resistance to price increases. We are essentially working on a break even basis and that is only because we choose the work we bid on carefully. Some work is not worth bidding on and some we have walked away from as our costs were exceeding our revenue in some cases. Activity has definately picked up but prices have not followed suit to the same extent. At least in Canada.