Speaking to members and officers of the Petroleum Equipment Institute, Robert Renkes, executive vice president of the organization, expressed optimism in the immediate future of the petroleum equipment industry and presented a positive retrospective overview of 2010 for PEI member companies.
Renkes’ remarks were delivered during a speech to more than 300 PEI members at PEI’s recent annual membership meeting held in conjunction with the 2011 PEI Convention at the NACS Show, the organization’s 61st annual convention and trade show, in Chicago.
During the speech, Renkes presented an evaluation of current business conditions within the petroleum equipment industry and pointed to challenges facing distributors, including credit and collections, employee issues, regulations and the state of the national economy.
Renkes also highlighted many positive economic indicators within the industry. “Our distributors continue to show a strong year-over-year return on assets when compared to distributors in other industries,” he said, citing an economic survey of PEI members that showed a modestly prosperous 2010 within the industry, despite the poor nationwide economic climate.
Looking forward, Renkes commented that he sees further consolidation within the industry. “We anticipate fewer, but larger, distributors of petroleum equipment operating in more widespread geographic areas,” Renkes said. “As baby boomers move closer to retirement age, their question will be ‘Is my strategy to acquire, be acquired or sit tight?’ ”