As more and more projects are being canceled due to lack of funding, i.e. Conoco Phillips 6 billion dollar ‘my bad’ from last month. The market is now saturated with many contractors who used to sit on their thrones made from stacks of per diem money as they got paid their “Texas money”, are now faced with the harsh realization that the very teat that used to feed from have dried up!
This has now separated these contractors into 2 categories, in my opinion. The “it was good while it lasteds” and the “do you know what I was makings”. It should be interested to see how much the contractor rates will deflate, now that many companies have realized that contractors that see the writing on the wall will go work a job for 25% less…. And the spiral begins!!!