American Oil and Gas Reporter - May 2017 - 64

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has returned, we have been able to keep
our lead times between 8 and 12 weeks,
depending on the compressor's size," she
details.
Wright credits the short lead times to
the company's strategy of keeping all
full-time employees working throughout
the downturn, only dismissing the contract
temporary workforce.
"Over the past several years, we have
developed two-year degree programs
covering machine trades and mechanics
with Stark State in North Canton, Oh.,
and Zane State in Zanesville, Oh. During
the downturn, approximately 80 percent
of our production workforce attended
school 20 hours a week, worked 20
hours a week, and got paid for 40. This
has allowed us to ramp back up very
quickly because our workforce is intact,
and even better, can boast advanced
skill levels."
Ariel is almost done building its new
training center at its headquarters in
Mount Vernon, Oh., which will include
Ariel compressors and full compressor
packages to provide hands-on training.
Wright adds that the center features machine trades labs, computer labs, and
state-of-the-art training rooms, including
a theater and a translation facility for international attendees. She points out that
the company offers free classes for field
service mechanics, engineers and other
members of its customer base.
"Throughout the downturn, we made
millions of dollars worth of improvements
to our facilities, machine tools and manufacturing and business processes," Wright
says. "For example, we have deployed a
new enterprise resource planning system

that has allowed us to boost production
without adding a huge number of support
personnel."
The company's old manufacturing resource planning system had been modified
significantly over 25 years into a one-ofa-kind system that rapidly was approaching
obsolescence, Wright says. "With the
new system, we will have a 'single point
of truth' with one database from which
everyone is working," she comments. "In
addition, we will have better information
to make decisions. This already is manifesting in our production capacity build
and is allowing us to maintain short lead
times."
During the past year and a half, Wright
says Ariel has invested $150 million in
equipment and facilities to expand its
production capacity. "If there was a silver
lining in the downturn, it was that we
had the opportunity to improve across
the company and to make sure we would
be ready when the inevitable uptick
began," she concludes.
Market Drivers
With the number of days to drill a
well falling significantly, lateral lengths
increasing and proppant concentrations
going from 500-1,000 pounds to 3,000
or more pounds per foot, wells' initial
production rates and ultimate recoveries
have increased dramatically, says Eric
D. Long, president and CEO of USA
Compression. "The rig count has doubled
since May 2016," he notes. "Coupled
with the 300-400 percent increase in productivity from each rig, that is a recipe
for pent-up compressor demand."
The demand varies from region to re-

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64 THE AMERICAN OIL & GAS REPORTER

By keeping its full-time staff and investing in equipment, facilities and process improvements during the downturn, Ariel Corporation prepared itself to meet growing demand
for compressors as activity recovered. The company reports its lead times range from 8
to 12 weeks.


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American Oil and Gas Reporter - May 2017

Table of Contents for the Digital Edition of American Oil and Gas Reporter - May 2017

Contents
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