When the downturn hit hard in late 2014, one of the areas that was hit hard was light truck sales for the oilpatch. Perhaps because it鈥檚 a new design, but Pipeline News has observed a substantial number of new Ford Super Duty trucks in the oilpatch in the past two months.
Randy Senchuk, dealer principal with Senchuk Ford Sales Ltd. in Estevan, noted on Sept. 14 that sales have indeed picked up. 鈥淭here鈥檚 more going out the door, that鈥檚 for sure,鈥� he said.
鈥淥ver the last few years we noticed a huge drop in the amount of vehicles that have been purchased. A lot of that was fleet. A lot of companies just weren鈥檛 buying new stuff. Probably 50, 60 per cent, it was a huge number.
鈥淚t鈥檚 not that our share of market was going down, it was the overall numbers were dropping,鈥� Senchuk said.
鈥淚鈥檝e noticed in the last year, it鈥檚 not back where it was, but it鈥檚 certainly improved a lot. We鈥檝e seen a lot more. We鈥檙e seeing a lot more numbers going out. People are getting back to work. I don鈥檛 know if they鈥檙e making any money, but they鈥檙e finding ways. They鈥檝e made their cuts. They鈥檝e made their adjustments and they鈥檙e finding ways to get back to work at today鈥檚 prices.鈥�
鈥淰ehicles wear out over time, so I think it鈥檚 a necessity for them. They have to do it. I don鈥檛 know what鈥檚 happening in heavier equipment. I know some oil companies used to get rid of their trucks around the 100,000 kilometre mark, and now they鈥檝e pushed them to the 200,000 mark. Now they鈥檙e getting up those numbers, and I think it鈥檚 a necessity. They have to change them. They don鈥檛 have a choice anymore.鈥�
Asked what the life expectancy of an oilfield truck is, Senchuk replied that it depends how it鈥檚 treated. He鈥檚 seen trucks go up to 300,000 kilometres, but it鈥檚 all in how it鈥檚 maintained. 鈥淵ou can get a lot of life out of it if it鈥檚 looked after well. It鈥檚 it鈥檚 treated a little rough, it鈥檒l be a shorter lifespan, for sure.鈥�
鈥淎 lot of companies like to get rid of their vehicles at 100,000, because there鈥檚 still some value in the truck. When you start to get up to 200,000, 300,000, there鈥檚 really not much value left in the truck. The sooner you do it, the more it鈥檚 worth.鈥�
Senchuk Ford finds their truck sales are roughly half-and-half between F-150s and the heavier Super Duties.
On fleet sales, he said, 鈥淭he contract operators, you鈥檙e always going to get them, as long as they鈥檙e working. When the oil companies cut their staffs back a few years ago, they had a lot of extra trucks sitting around, too. So that was part of it as well. If you go from 50 people driving trucks to 20, you have 30 trucks left. They may have shuffled them around and found a home for them.
鈥淭hey鈥檙e starting to hire more people and get people in the field.鈥�
鈥淗opefully things are going to pick up a little bit and stay there,鈥� Senchuk said. 鈥淚 don鈥檛 know if we need to be as crazy as we were when it was that busy. But I think, as long as the price has stabilized to the point where everyone can do their job and be successful, that鈥檚 important.鈥�
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The October edition of Pipeline News focuses on how recapitalization is becoming a pressing issue in the oilpatch. See more related stories when it comes out next week.
