This past week, Lewis Makin, director of client solutions at Pinnacle, joined the Economic Alliance Houston Port Region’s podcast, Gulf Coast Growth Show, to discuss the current challenges of the oil and gas industry. The Economic Alliance is a non-profit organization that serves the Houston area through economic development. Members of the Economic Alliance include Harris County, Port Houston, and a variety of private businesses located within the Houston Ship Channel area.
During the podcast, Makin discussed the importance of making strategic budget cuts that reduce short-term costs while maximizing the value of a program. While facilities are having to make massive cuts to their budgets, they should avoid blindly cutting costs across their program. Many facilities run into compliance issues when they quickly reduce costs without analyzing which initiatives add the most value to their program.
Instead of cutting costs across a program, facilities should focus on the activities that add immediate value to their program and reduce the budget of initiatives that do not directly add value.
Despite the serious challenges and difficulties of the last two months for the oil and gas industry, Makin’s overall message was positive and emphasized the opportunities facilities have to reinvent themselves by improving the processes they might not have had the time to focus on previously.
Watch or listen to the full discussion below. For more information on how your facility can reduce costs, register for Pinnacle’s weekly cost savings series.