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HIGHER OIL PRICES, WEAK DOLLAR COULD HELP AREA BUSINESS
Friday, January 8th, 2010 -- 10:15 am
Posted by Riley Hebert-News Director
In a strange way, the head of one of Neillsville’s main employers is hoping 2010 brings higher gas prices and a weaker US Dollar.
Mark Tyler of OEM Fabricators Inc. says 2009 was by far the worst year he’s experienced since he got into the business back in the late ‘70s. Company revenues were down 30% and employment was down 50%. Their Neillsville location now employs around 60 full-time employees.
"This is the worst that we've seen," Tyler laments. "It hit everybody. When the financial markets locked up, even places there were activity, people lost their access to capital. That shut down people's ability to buy equipment they wanted and needed."
Things are looking up this year, but it’s going to be a gradual recovery.
"It looks like the prospects are on the up-side. I don't think they're going to be as robust as they were a year-and-a-half ago, but there is some light out there. Inventories are finally burned off and they're starting to reorder," he says.
Now, how will higher oil prices and a weak dollar be good for OEM?
OEM constructs a number of components for the oil and gas industry. Business was booming when oil was well over $140 per barrel. It’s starting to creep back up again.
They also do a lot of exporting. The weaker dollar encourages foreign companies to buy from American businesses.
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