Home Back Issues April 2009 Esco sees bright spot in gold as global slowdown hits

Esco sees bright spot in gold as global slowdown hits

| Print |  Email
Archives - April 2009
Wednesday, April 01, 2009

PORTLAND What a difference a year makes. A year ago, Portland-based heavy equipment manufacturer Esco was surging along on strong prices for metals and oil as well as emerging markets in India and China. Not any more. Price drops and the global slowdown have forced the company to cut 400 positions globally and 120 jobs in Portland.

Esco has been based in Portland since 1913. It survived the Depression years by building parts for sawmills and paper plants. Today its areas of interest span the globe, from gold mines in Africa to the oil sands region of Canada. When prices for copper, iron ore and oil plummet, as they have, Esco receives fewer orders and more cancellations and has to adapt swiftly.

But there are bright spots. For one thing, there is gold, which has been hovering around $900 per ounce. “Gold is a significant piece of our business, and it has been a bright spot for us,” says Mark Mallory, Esco’s vice president of North American sales.

“Based on all the fear in the economy I’m expecting the gold price to stay strong and as long as it stays up miners will keep digging for it with our equipment.”

Digging also continues in the oil sands, although the dramatic drop in oil prices has turned the boomtown of Fort “McMoney” back into plain old Fort McMurray. Esco runs a supply store there, and oil companies have invested so much in the area that they’re still digging away, despite the price drop. “We still think that over the long term there is a huge upside in the oil sands,” says Mallory.

The same goes for stimulus works, especially major bridge and highway projects, which will require the sorts of dozers and excavators that Esco specializes in. And who knows? If the stimulus works, commodity prices may creep back up, putting miners back to work in Brazil and foundry workers back on the job in Portland. Time will tell.

BEN JACKLET

 

oilsands Esco’s business reaches to the oil sands region of Canada.


 

Have an opinion? E-mail This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 

More Articles

Launch

September 2014
Tuesday, August 26, 2014
BY JESSICA RIDGWAY

September's Launch article features Orchid Health, BuddyUp and Inter-Europe Consulting.


Read more...

Register for 100 Best Companies survey

News
Wednesday, August 20, 2014
OBM-100-best-logo-2015 150pxwBy Kim Moore | OB Editor

The 2015 survey launched this week. It is open to for-profit private and public companies that have at least 15 full- or part-time employees in Oregon.


Read more...

Interview: Dr. Mark Goulston

Contributed Blogs
Thursday, July 10, 2014
JustListenBY TOM COX | OB BLOGGER

Tom Cox interviews Dr. Mark Goulston, author of Just Listen, Discover the Secret to Getting Through to Absolutely Anyone.


Read more...

Poll Wrap-Up

News
Friday, August 15, 2014

2014 NewPoll-report-newsletterthumbIn this week's poll, we asked readers: "Who should pay for the troubled Cover Oregon website?" Here are the results.


Read more...

Powerlist: Colleges and Universities

September 2014
Wednesday, August 27, 2014
BY KIM MOORE

A conversation about higher education with the presidents of the University of Oregon and Clackamas Community College, followed by September's powerlist.


Read more...

Back to School

September 2014
Wednesday, August 27, 2014
BY LEE VAN DER VOO

By now we’ve all read the headlines: Starbucks is giving away free degrees. Except it isn’t.


Read more...

Molecular Movies

September 2014
Wednesday, August 27, 2014
BY LINDA BAKER

Dr. Chong Fang isn’t God. But the assistant professor of chemistry at Oregon State University is getting closer to figuring out how he put everything together. 


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS