Canada, and by extension its mobility sector, is going through a tumultuous time. The collapse in the price of oil has hit the country’s economy hard, while the recent election victory of the Liberals promises to rock the boat further. Mark E Johnson explores the macro-level trends affecting mobility to, and within, Canada.
The headline for the Canadian economy over the last year has been the dramatic fall in the price of oil, which has slid from highs of over USD100 to lows of between USD40 and USD50.
Neil Gascoigne, business development director of Hays Oil & Gas, says that, in North America, “the prolonged downturn in the price per barrel of oil is really two stories. On one side, you have the oil industry itself, with the prolonged downward spiral of the oil prices resulting in significant expenditure cuts by the exploration and production companies.
“This, in turn, has affected oil services companies. With little new drilling or exploration taking place, in many cases they have had to restructure their businesses and cut costs to ensure survival. It has been well publicised that oil and gas companies have been downsizing their operations, and tens of thousands of people have lost their jobs due to the decline in oil prices and the global oversupply in the system that has driven this decline.”
Implications for mobility
Paul Coleman, president and CEO of Montreal-based TERN Financial Group, which provides financial services to the global mobility industry, says that Alberta is feeling the impact and the mobility sector is feeling the pinch.