We offer a positive outlook for 2012, and believe the domestic project sector requiring heavy deck barges will be strong, as will the international markets, specifically Mexico, and Central and South America.
We project 2012-2014 to be a steady growth period for our core business in oil and gas, power generation, mining and heavy construction. We are, however, realistic about the slow economic economy is having, and the challenges small and large business face.
Three areas for concern are:
- Inland waterway infrastructure: These waterways are the backbone of the U.S. economic engine, and they have been neglected. Everyone in this nation should be concerned with this issue, taking time to learn more about it, and writing state representatives.
- Insurance: The insurance industry on a worldwide scale has experienced some of the highest losses in history, driving up the costs for everyone.
- The Gulf Coast offshore oil and gas industry: This industry is still feeling the effects of the administrations moratorium on drilling. Even now with the moratorium lifted, recovery will take years. This has had a huge impact on the barge industry as utilization of equipment is severely reduced and more equipment is deployed in nontraditional markets.
Overall, I believe the worst of the economic downturn is over for our business. With proper planning going forward, we should see sustainable business for the next several years.