When are all of these ALS facilities in OK going to be moved into one building? Seems pointless at this point to have 5+ shops spread out through the state, all doing something different. There has to be somewhere they can consolidate these to save some money....
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You must not know much about logistics. We don’t use “hotshots” to transport equipment between facilities, we use shuttles and LTL. Those are paid for by Baker Hughes and cost us pennies. If a hotshot is used to ship from one plant to another, it requires levels of approval and are only given out of absolute necessity. Hotshots are usually only used to ship directly to the wellsite. The customers contract would determine who is paying that freight. Many of our customers are “direct bill”, meaning the carrier bills directly to the customer. If they aren’t, we bill the freight back to the customer at cost + 15-25%, sometimes more. We only eat the cost of freight if it was our fault. Tool failures, etc.
They can't even sell the properties that were closed in the last rooftop consolidation. Consolidating rooftops when orders are up and facilities are operating over capacity is brilliant management thinking. They must teach that in some expensive MBA program.
There is a reason why Amazon and other companies have distribution hubs, and that is to be physically closer to the customer. Centralizing a manufacturing center and distributing from it will increase trucking/hotshot costs, and that results in higher costs for the customer. It also centralizes risk. You wouldn't put all of your money in one stock, why would you put all of your product in one place?