The oil industry has been taking a beating in Alberta for months now and there is no end in site.
The Canadian Association of Petroleum Producers (CAPP) said back in September as many as 35,000 oil patch jobs had been lost and there have been more cuts since then.
The economic downturn is forcing companies to make some very difficult decisions to cut costs, so what should you do about innovation? The answer to that question is often “forget about it” there’s no money.
According to economist Tim Kastelle, “If innovation is one of your top strategic priorities, then you have to invest in it. You need to invest in innovation not just when things are going well, but also when times are tough. This has benefits: it leads to a sustainable innovation effort, which in turn drives superior returns. And in tough times, that’s important.”
This sentiment is echoed by the World Bank’s Peter Lindholm, “Times of crisis are also the right time for innovation. Because that’s when everyone has to survive, and those who have invested in innovation suddenly can boom when the crisis is over. If you have money, it’s really the right time to invest more in innovation, also the mental conditions are more favourable – because when you are a happy ‘fat cat’ you usually don’t try to look at innovation, but when you have to survive, you have to find solutions.”
If you are looking for some cost cutting solutions that will not only improve your bottom line but will also help you go a long way towards protecting the environment and your workers, contact Katch Kan.