Contact and Coil | Nearly In Control

Jan/16

27

Price of Oil Affecting Alberta and Ontario

The recent drop in the world price of oil has caused a similar drop in the value of the Canadian dollar. Much of that has to do with the huge oil production in Alberta, so that province is being hit particularly hard right now. The “oil sands” in Alberta are particularly expensive to exploit, as oil sources go, so companies there are quick to make cuts when the price drops below their break-even point.

The previous run-up in oil prices saw a lot of migration out of manufacturing-heavy Ontario westward to Alberta, and control system specialists were a big part of that. It’s difficult to see them facing these challenges, and none of us want to be in that position.

Back here in Ontario, the pendulum looks like it’s swinging the other way. When rising oil prices drive up the Canadian dollar, it makes it a lot harder for Canadian manufacturers to compete in the export market, because their products are automatically more expensive. The recent drop in the Canadian dollar, if it persists, is going to mean growth in the manufacturing sector, especially along the 401 corridor in Ontario. Personally I’m looking forward to seeing some growth in what has been a relatively stagnant market over the past 10+ years.

Automation is poised to be a big part of the new growth in Ontario. At first companies are likely to be cautious about adding new capacity, likely adding temporary labour, but if the trend holds, I think we’re going to see lots of interest in automation projects throughout the area. Companies are still a bit leery of the economy, so they’ll be looking for flexible automation that can adapt to changes in demand and re-tool quickly. Technologies that can support flexibility are going to be winners.

While disappointing for Alberta, I’m excited to see what the future holds for Ontario.

If you do happen to be out in Alberta and you have discrete automation programming experience, and you’re interested in moving back to Ontario, make sure you drop me a line. We’ve experienced lots of growth ourselves in recent years, so we’re interested in hiring an experienced automation programmer for our Electrical Engineer position. We use TwinCAT 3 and C# and mentoring is available to get you up to speed with these technologies. Even if you’re local and you’re tired of the endless travel or 2 am service calls, then maybe this family-friendly company is right for you.

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