The home heating oil industry has a long and proud history, and Fuel Oil News has been there supporting it since 1935. It is an industry that has faced many challenges during that time. In its 77th year, Fuel Oil News is doing more than just holding
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JUL Y VOL . 7 6 NO. 0 7 EDI TO R ’ S N O T E Keith Reid remains the core focus of our magazine. However, it is becoming more apparent each day that business diversification is of critical importance. The National Association of Oilheating S Service Managers announced a name change to National Association of Oil & Energy Service Professionals at its recent annual convention. And Michael Trunzo, the new president and chief executive officer of the New England Fuel Institute (along with a range of other speakers), highlighted this reality at NEFI’s recent convention. There are a range of factors at work that have pushed diversification to the fore- front, though that trend has long been a background reality for the industry. These include highly volatile oil prices that stay at the top end for extended periods of time; the likelihood of stable to reduced natural gas prices linked to a range of factors including new natural gas reserves opened up through the fracking process; and the current envi- ronmental focus on green solutions that is strong among legislators, regulators and consumers in the key oil markets. The industry is responding aggressively to each of these challenges. For example, we can now claim heating solutions that match or beat gas as a green heating fuel. However, while the future might, and in my opinion will likely, offer some relief and stability in these areas they are equally likely not to go away. But then neither is oil heating. 6 Business Diversity Is The Chorus Of The Industry ELLING FUEL OIL AND OIL-BURNING appliances is the core business model of FON’s readers and it Numerous industries face similar chal- lenges and the key to success is developing a strategy that moves an industry and a company within that industry forward. For an industry that in many cases used to sell its customers coal, this is not all that new. Further, there are clear opportunities to leverage existing core competencies to not only reduce a loss in market share, but to grow a business. On the fuel side obvious areas include offering propane service (as many of our readers already provide) or move into die- sel marketing or biofuels. There is already competence in dealing with fuel suppliers, fuel markets and fuel delivery custom- ers. Even areas as exotic to the industry as the sale of electricity and natural gas to customers (made possible by deregula- tion) leverage existing core back office and administrative capabilities. On the HVAC side, these opportunities include expanding service to become a more generalized contractor selling and servicing the range of heating and air conditioning appliances or moving into associated areas like plumbing or electrical work. The industry has skilled drivers. In the offseason when they are not delivering much oil, what else can they be delivering? There is always a balance in business focus between taking on new opportuni- ties and moving out of core competencies, which can minimize potential success. The positive take away is that the fuel oil indus- try as it stands today can do an awful lot of diversification and still stay comfortably close to those core competencies. l FON JULY 2011 | FUEL OIL NEWS | www.fueloilnews.com EDITORIAL STAF F Editorial Office 1030 W. Higgins Road Suite 230 Park Ridge, IL 60068 847/720-5600 Editor Keith Reid 847/720-5615 kreid@m2media360.com Managing Editor Debra Reschke 847/720-5618 dreschke@m2media360.com Columnists Charles Bursey, Sr. John Griffin George Lanthier EXECUTIVE STAF F President/CEO and Group Publisher Marion Minor List Rentals/ Reprints – Cheryl Naughton 678/292-6054 Fax: 360/294-6054 cnaughton@m2media360.com PRODUCT ION Production Manager – Mary Jo Tomei Art Director – Andrew Stamm ADVERTISING SALES East – Dave Campbell, Associate Publisher 413/528-2364 Fax: 413/528-8835 ddc12@verizon.net Central & South – Rich Alden 603/899-3010 Fax: 603/899-2343 ralden@m2media360.com West – Ken Jordan 972/540-2122 Fax: 972/540-2127 kenjordan3@yahoo.com MAIN OF F ICE 1030 W. Higgins Road Suite 230 Park Ridge, IL 60068 847/720-5600 • Fax: 847-720-5601 CUSTOMER SERVICE 847/763-9565 Fuel Oil News P.O. Box 2121, Skokie, IL 60076-7821 M2MEDIA360 Membership applied for 7/1/2010 BEV-AL COMMUNICATIONS INC. Marion Minor Gerald Winkel President/CEO Director of Finance Joanne Juda-Prainito Mary Jo Tomei VP Audience Develolpment Production Director