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Supply Chain - Current Issues

Supply chain issues have become a major concern for many industries in recent years, and the oil and gas sector is no exception. These issues can arise for a variety of reasons, including natural disasters, political instability, and the COVID-19 pandemic.

One of the most significant supply chain issues currently impacting the oil and gas market is the shortage of critical raw materials. This shortage is largely due to the COVID-19 pandemic, which disrupted global trade and caused delays in the transportation of goods. As a result, many companies in the oil and gas sector are struggling to obtain the materials they need to operate at full capacity.


Another issue that has emerged in recent years is the increasing cost of transportation. The cost of shipping goods has risen significantly in recent years, making it more expensive for companies to bring in raw materials and transport finished products to market. This has put a strain on profit margins and made it more difficult for companies to compete in a global market.



So, what options are available for outsourcing key subcontracting items, such as machining, welding, forgings, custom manufacturing, and rack and pinion? One option is to turn to third-party suppliers, who can provide these services at a lower cost. This can be a good way to reduce expenses and increase efficiency, but it also comes with its own set of risks. It is important to carefully research potential suppliers to ensure that they have the necessary expertise and resources to deliver high-quality products and services.



Another option is to invest in automation and other technology that can help to streamline manufacturing processes and reduce the need for external subcontracting. This can be a costly upfront investment, but it can pay off in the long run by reducing the need for external suppliers and increasing efficiency.

Ultimately, the best approach to addressing supply chain issues in the oil and gas sector will depend on the specific needs and goals of each company. By carefully assessing their options and weighing the pros and cons of each approach, companies can make informed decisions about how best to move forward.


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