Lessons Learned from Marcellus Part 4: Insights After 6 Month’s Focus on Shale

December 18, 2011 by Andy Birol
Filed under: Business Growth, Marcellus, Pittsburgh, Profitable Growth, Uncategorized

Not until the summer of 2011, did the Marcellus opportunity begin to make sense to me. Knowing nothing about gas drilling, energy policy or how big energy companies function, I grew increasingly frustrated by all the attention that Marcellus was attracting.

Then I recalled my Economics 101 professor’s simple message; the impact of one dollar spent in the economy is multiplied 3-10 times as it passes from each buyer to another seller. And with a trillion dollars of spending on natural gas in Western PA, the multiplier effect is mind-boggling! Every business that can do business downstream of gas drillers and their suppliers can’t help but grow as Marcellus spending mushrooms. As I conduct more workshops, media interviews and client engagements, I have observed the following progress.

• PriceWaterhouseCoopers is reporting: PWC just released a terrific white paper projecting huge growth for manufacturers serving the gas industry. Its conclusion:
o Chemical, metal and industrial product companies will see orders spike.
o Up to one million workers will be hired.
o Affordable natural gas will cut manufacturers’ production costs as well.
o Natural-gas refueling stations and evolving regulations could inhibit or slow this sector’s growth but cannot prevent it.
o The lower the cost of production of natural gas, the sooner the industry will take off.
o To access the full report, click here.

• My clients are focusing on the low-hanging fruit for their best opportunities or are already overwhelmed with demand for their products. My construction and environmental clients are seeing particularly large opportunities and real sales growth. Contact me with no obligation (412) 973 2080, and let’s chat about how your firm can participate in Marcellus.

• Interest is building: I will present workshops in Pittsburgh, Wayne, Shenango and Washington counties over the next 60 days. Click here to see which one you can attend to start preparing your business soon.

• Associations are responding: The Small and Medium Business Council’s (SMC) Dynamic Business Magazine is launching my new column “Profiting Thru Marcellus” in its January issue available soon through its site, www.smc.org