12 November 2007

Hot, Cold, Hot...

Little rant.
((((Sigh))))This is our business life. Things are either off the charts, or dead as a doornail. We have years where we are booked out three months in the fall, backordered on stoves for months. The next year you stare at the door and wonder what the hell happened to all those people who were screaming because you couldn't get them squeezed into your schedule in a couple of days as soon as it snows and you wonder if you'll make it through the year??
Where are all the people who swore that pellet or wood was the answer not just because it's cheap (I hate that word), but because it the right thing to do? These people shut their stoves off in droves when oil prices are low. Not lower than pellet in many cases, but hey if you don't have to get your lazy ass off the couch to fill the stove once a day it's worth a few extra bucks right?
Last year was one of the worst for our industry. What people don't realize is they created a very dangerous situation by having such on again, off again support for alternative fuels. There were many major players, and little guys, that went out of business or had to sell to the highest bidder, are carrying large loans and/or are on the brink of collapse because of this. One of the worst parts is that every time we lose users here- even for one heating season- that fuel is LOST. Sold to Europe, sold to China, sold to so many others who know the value of the fuel. We now export more pellet fuel than we use in this country. Good luck getting it back. It won't happen. I have been to a few world pellet conferences in Europe and they spend a great deal of effort and money to woo the US and Canadian manufacturers. Their standards are lower, they pay in advance, and they buy very large quantities.
When the oil prices are out of sight the number of people that use their pellet stoves goes up by the tens of thousands. Well in excess of 100,000 extra stoves were estimated for the 2005 heating season. The average house uses three tons in a heating season. So these extra users can add an extra demand equal to as much as a third of the annual pellet production in this country in an instant. (AND that doesn't account for the fact that we now ship more pellet fuel to Europe than we do domestically.) This creates spot shortages, DUH! The best JIT system in the world couldn't manufacturer 30% of their annual production in a week or two...
The industry took the area shortages in the Northeast very seriously in 2005. They made deals with West coast manufacturers (who had excess that year) to ensure that there was ample supply in New England. Manufacturers, and dealers spent hundreds of thousands of dollars, and more on infrastructure, and extra stocking space to buy the fuel early. Then our fair weather friends did not turn on their stoves. They did not buy fuel. The Year of the Cricket, where many fell or were severely crippled.
This year the oil prices are back where they should be and suddenly we are back to a packed store of people wanting this yesterday wondering why we have so few employees, why we are sold out of many stoves, and why it will take weeks for us to get out to install a stove. Pellets are holding for now-(knock on wood)...
I have learned to be greatful for the times when I cannot get the product and have a backlog. Even though customers are screaming at us and holding us responsible at least the fuel is being used and therefore preserved for our use- this year at least. ((((Sigh))))

1 comment:

EXSENO said...

I wish I could use something like that for heating but I can't I live in a trailer all electric. Can you imagine in a outage.