We are nearing the end of 2016 and unfortunately for many, this year’s poor market conditions and the rapid decrease in the price of oil still grips tightly on many service-based companies.
Many companies have had to reduce costs and lower prices to be competitive in this demanding market. Overall, capital spending in the industry is dramatically lower than what it was in 2014 which has translated to many companies lowering their prices in an attempt to win work. The impact of this trend has unfortunately put many companies in severe financial difficulty. It has now become very risky to award service and fabrication companies contracts without extensively researching their financial stability.
Foremost is one company that can remove this risk with its exceptional balance sheet and financial strength. Foremost has been a leader in reducing costs by consolidating resources while continually improving quality and service. In spite of the current economy, Foremost continues to provide great value and confidence to a market full of speculation.
In late 2012, Foremost announced the rebrand of its company. This saw the amalgamation of Universal Industries, Maloney Industries, Peaceland (Grande Prairie), Brahma Compression, Stettler Oil & Gas (Stettler, AB), Steelhead Welding (Edmonton, AB) and Foremost Industries under the Foremost name. The renewed strength of Foremost began during a prosperous time in the economy and concentrated resources led Foremost to become a top supplier in the energy resource industry.
In 2014, Foremost created two subdivisions with one focusing solely on Energy Equipment and the other focusing solely on Mobile Equipment. Energy Equipment product lines include: Treater packages, Field erected Tanks, Shop built storage tanks, Separator packages, and pressurized storage bullets. On the Mobile Equipment side, product lines include: Vacuum Trucks, Dual Rotary Rigs, Drill Tooling, and many types of wheeled and tracked and vehicles including the famous Nodwell.
In 2002, Foremost partnered with NASA to launch scientific balloons using our Commander vehicle in the Antarctic and then worked with them again to develop the NASA Mars Lander Balloon Launch Vehicle (used successfully in two launches to date). Both launches were in Hawaii; one on June 28th, 2013 and the other on June 8, 2015. Foremost has now also become the largest producer of premium vacuum trucks in Western Canada with sales into all corners of North America. This diversification is one of the most important attributes that provides Foremost its ability to maintain and build upon its financial strength.
This past year has been a quiet year for many service companies but Foremost’s Energy Equipment division has been consistently active fulfilling contracts in and around Alberta, British Columbia and Saskatchewan. Some of this year’s contracts included Field Tanks, Shop Tanks, Separator Packages, large Pressure Vessels, and Vapour Recovery Units. In addition to their consistent production, Foremost has also received awards in recognition for their outstanding quality of Field Tanks, as well as a safety award last November in recognition for their excellence in implementing and following safety standards.
Foremost has also strengthened its senior management team. Kevin Johnson, a seasoned manufacturing professional recently became the President of Foremost in January 2016. Rounding out the senior team is Mike McCarthy Senior VP of Operations, Mike Strilchuk VP of Energy Equipment and Jackie Schenn VP of Finance. 2016 has been a year the Foremost team has been focused on delivering excellent customer service in this cost constrained environment.
Above all else, Foremost maintains an extremely dedicated and talented team of employees, and will continue to be the most reliable, financially stable, and most trusted industrial manufacturers in Western Canada.