Weyburn 鈥� With the downturn in oil prices, few companies have been buying new iron, and getting by with what they have. But the iron they do have that has kept working continues to put miles or hours on. At some point, a lot of equipment is going to need to be replaced.
That鈥檚 top of mind to Suzanna Nostadt, VP of operations for Tremcar West Inc., in Weyburn. They also have branches in Saskatoon and Edmonton.
Tremcar specializes in tank trailers, and in this region, in the oilpatch.
鈥淲ith all the sales that have been going on, with people getting rid of trailers, those sales have slowed down. And people are actually looking at buying new trailers, which is unbelievable, because we haven鈥檛 seen that in three years,鈥� Nostadt said on Sept. 7.
鈥淭here hasn鈥檛 been hardly any sales of new trailers. It鈥檚 been extremely slow. A lot of that was caused by the downturn in the oilpatch, crude prices dropping. It was all types of units, basically.鈥�
While she鈥檚 seen some customers keep well-maintained trailers for 32 years or more, but that鈥檚 not typical. 鈥淢ost of the time, when they buy a new trailer, they usually keep it for as long as they have work. And when they don鈥檛 use it, they usually wind up selling it. It鈥檚 usually a turnover of 10 to 15 years, when they trade up, or there鈥檚 newer or better trailers, similar to a vehicle.鈥� she said.
Major overhauls, like replacing the sump and fittings, is dependent on what they haul, and their maintenance. 鈥淚f they鈥檙e hauling very caustic stuff, and they don鈥檛 rinse them out, or how they store it, will affect the longevity of their trailer. Also, preventative maintenance helps.鈥�
Visual and leakage tests are required by Transport Canada yearly. Every five years, an internal test and pressure test are required.
鈥淭here鈥檚 still people working. They complain lots about the rates, but they鈥檙e still working. They鈥檙e still wearing their trailers out. Even if they鈥檙e sitting, they鈥檙e still wearing their trailers out to a certain extent, because seals are drying up and stuff isn鈥檛 moving,鈥� she said.
Nostadt thinks there is a pent up demand for new trailers. There seems to be a real push to go to stainless steel tanks, for instance. Stainless steel is heavier and more durable than aluminum tanks, but aluminum is lighter and can carry a higher payload. However, you have a lining to contend with.
Asked if there鈥檚 a magic number for oil prices to see activity pick up, she responded, 鈥淚 think our customers eventually cannot afford to sit there and let their units sit. They get them ready in anticipation they鈥檙e going to need those units. That kind of activity is based on optimism in the oilpatch and the whole economy. I think it sometimes becomes a self-fulfilling prophesy, because they鈥檙e going to create business. They鈥檙e going to fix up their units and start using them and actively going out to get work so they can go out and use their trailer. A lot of them will do their yearly maintenance on them so that in the event they need them, they鈥檙e ready to go. They don鈥檛 have to wait to get them in a shop to get the work done.鈥�
鈥淚t can鈥檛 continue this way for another three years, because that would be devastating.
鈥淚n the last three months, we鈥檝e seen a real influx of activity and repairs 小蓝视频 done; purchasing of new units. We haven鈥檛 seen that,鈥� she said, noting customers are now fixing units they wouldn鈥檛 have thought of three months prior. 鈥淭here must be something happening.鈥�
鈥淪ales of new iron is picking up. Customers are more confident of purchasing new trailers now, fixing trailers. They鈥檙e willing to spend money now.鈥�
It鈥檚 not just the big companies, but rather across the board, she noted, saying, 鈥淭here seems to be a lot more optimism than there was before. I鈥檓 hoping we鈥檙e at a turning point, here.鈥�
鈥淭hey鈥檙e starting to open the purse up and spend money,鈥� Nostadt said.
鈥淚 really think the market is turning. I really think we鈥檙e turning in the right direction. Let鈥檚 hope, anyway,鈥� she concluded.
