The Driller
  • Sign In
  • Create Account
  • Sign Out
  • My Account
  • NEWS
  • CLASSIFIEDS
  • EQUIPMENT
  • SAFETY
  • VIDEOS
  • EDUCATION
  • SOURCEBOOK
  • EVENTS
  • SUBMIT
  • ABOUT
  • SIGN UP
cart
facebook twitter linkedin youtube
  • NEWS
  • Water
  • Geothermal
  • Construction
  • Environmental
  • Mining
  • All Industry News
  • EQUIPMENT
  • Rigs & Heavy Equipment
  • Consumables
  • Pumps
  • Featured Products
  • VIDEOS
  • Newscast
  • Drill Talks
  • Ask Brock
  • Emerging Drillers
  • EDUCATION
  • Drilling Business Insights
  • Reference Desk
  • Sponsored Insights
  • EVENTS
  • Conferences & Demo Days
  • Newscast LIVE
  • SUBMIT
  • Drillers @Work
  • ABOUT
  • Contact
  • Advertise
The Driller
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
The Driller
  • NEWS
    • Water
    • Geothermal
    • Construction
    • Environmental
    • Mining
    • All Industry News
  • CLASSIFIEDS
  • EQUIPMENT
    • Rigs & Heavy Equipment
    • Consumables
    • Pumps
    • Featured Products
  • SAFETY
  • VIDEOS
    • Newscast
    • Drill Talks
    • Ask Brock
    • Emerging Drillers
  • EDUCATION
    • Drilling Business Insights
    • Reference Desk
    • Sponsored Insights
  • SOURCEBOOK
  • EVENTS
    • Conferences & Demo Days
    • Newscast LIVE
  • SUBMIT
    • Drillers @Work
  • ABOUT
    • Contact
    • Advertise
  • SIGN UP

Mailbox

December 19, 2000
Everything you related in your article...and the need for contractors to stop killing each other with low prices is true, in a perfect world.

Dear Mr. Olsztynski:

I have just completed the second part of your article(s) that were printed in the National Driller magazine. As I read, I couldn't help but to nod my head in agreement. As a little background, I can tell you that I am a partner in a contract drilling company located near Madison, WI. We have been in business since 1988, providing auger, rotary, dual tube, bucket auger and other related drilling services. We are not a water well driller but do act as subcontractor to these companies for speciality drilling applications.

Everything you related in your article regarding pricing, profit determination and the need for contractors to stop killing each other with low prices is true, in a perfect world. Unfortunately, once a contractor or group of contractors raises their prices, another one steps in to take up the work by underbidding. It is not the fault of this contractor, it is the fault of the bidding public. Until "low price only" is removed as the controlling factor in bid award determination, there will not be a change in pricing trends. Regardless of what customers say (whether they be private individuals or government entities), low price is the primary factor by many degrees which determines project award. Additionally, we have seen other contractors cutting corners with regard to regulations, safety training, proper accounting and employee pay and benefit packages in order to keep their operations solvent. Smaller contractors have been known to take payments in cash in order to avoid income reporting. We all know these things are happening.

At recent drilling-related meetings, I performed informal surveys of our competitors and colleagues in the drilling business. I asked them pointed questions regarding how they determine price, what types of overhead calculations they made, what range of pay and benefits their employees enjoyed and how they were adjusting to the recent fuel price increases. The answers I received amazed me and surprised me. Although I am paraphrasing, the answers I have listed below make it easy to determine the question and to see why our industry is in such a state of price gouging.

"I don't know about overhead, I just figure that if I have money in the bank, I'm okay."

"If my employees want to take time off, that's ok, but I'm not going to pay them for it."

"Once every quarter I just have my bookkeeper come in and he tells me what I owe for taxes."

This just is the tip of the iceberg of ignorance of those in our industry who think a guy being paid $12.50/hr is a good wage. They also believe that a husband/wife business team is doing ok if they are both working fulltime and making $50,000 a year between the two of them. Finally, this is an industry that believes cash flow management is paying vendors that call the most and scream the loudest about overdue invoices. As you can guess, I am not happy about our industry. Why people want to work longer and harder every year with no increase in pay and with bidding prices going LOWER is beyond me. Thank you though for trying to educate the ignorant. We appreciate the effort.

Sincerely,

Matthew Hood

Vice President

Environmental & Foundation Drilling, Inc.

Waunakee, WI

The problem you describe is common to all the blue collar trades. It stems from a lack of business education. In the plumbing trade there are a few licensing jurisdictions that require contractors to demonstrate a little (too little, in my opinion) business acumen before receiving a master's license, but otherwise the emphasis is solely on technical knowledge. This perpetuates the problem you describe.

I also think it stems from a blue collar bias throughout our society in which everyone undervalues the contributions made by people who provide us with life's essentials - plumbing, heat, water to drink, etc. This is the subject of an article currently germinating in my brain and which you'll probably read somewhere down the road.

Thanks again for taking the time to write,

Jim Olsztynski

Mr. Rich Maxwell:

I wanted to take the time to thank you for mentioning me in your recent article 'HDD - 20 Years - 20 Stories.' I found the article to be interesting and fairly accurate. I agree with your comments regarding the three major areas where the HDD industry will mature and evolve over the next 20 years and I definitely agree with your concerns about the full utility corridors. I can envision 'liability landmines' every time a drill bit enters the ground. We experienced this situation some years ago while drilling under a river; we drilled into a structure that had been drilled 10-12 years earlier. Adding insult to injury, it was found that Cherrington was the contractor who had drilled the first structure in that location several years before. The landscape had changed so much over those 10-12 years, we just didn't recognize the site.

I hope to be around to see the progression of the industry. If nothing else, the HDD business will always provide a challenge.

Keep up the good work!

Sincerely,

Martin Cherrington

President

Cherrington Corporation

Share This Story

Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!

Recommended Content

JOIN TODAY
to unlock your recommendations.

Already have an account? Sign In

  • geotechnical drilling rig

    6 Onsite Phrases Environmental Drillers Hate

    Here are six phrases that highlight common frustrations...
    Environmental Monitoring
    By: Jeff Garby
  • Wayne Nash

    Pipe Stuck? Common Causes and Solutions for Drillers

    If you have drilled for any length of time, sooner or...
    Opinions
    By: Wayne Nash
  • submersible pumps, water well pumps

    Selecting and Sizing Submersible Pump Cable

    This article helps pump installers and servicers decide...
    Water Wells
    By: Bob Pelikan
You must login or register in order to post a comment.

Report Abusive Comment

Subscribe For Free!
  • eNewsletters
  • Online Registration
  • Subscription Customer Service
  • Manage My Preferences

The Driller Newscast: 21st Century Drillers | Part 1 DEMAND

The Driller Newscast: 21st Century Drillers | Part 1 DEMAND

The Driller Newscast, Episode 147: Global Geothermal Collaboration at NY-GEO 2025

The Driller Newscast, Episode 147: Global Geothermal Collaboration at NY-GEO 2025

The Driller Newscast: New York Geo Talks 2025 Conference with Hands-on Driller Education

The Driller Newscast: New York Geo Talks 2025 Conference with Hands-on Driller Education

The Driller Newscast: Coiled Tubing Drilling and the Future of Geothermal

The Driller Newscast: Coiled Tubing Drilling and the Future of Geothermal

More Videos

Sponsored Content

Sponsored Content is a special paid section where industry companies provide high quality, objective, non-commercial content around topics of interest to the The Driller audience. All Sponsored Content is supplied by the advertising company and any opinions expressed in this article are those of the author and not necessarily reflect the views of The Driller or its parent company, BNP Media. Interested in participating in our Sponsored Content section? Contact your local rep!

close
  • demo of a DM450 drilling rig during a customer factory visit
    Sponsored byGeoprobe

    Built for You: Smarter Drill Rigs, Stronger Support, Bigger Opportunities

Popular Stories

MainPhotoTwoBrothers.jpg

Two Brothers' Journey Through the Drilling Industry

Tariffs

Tariffs Shake Up the Drilling Industry

AI and Drought Concerns

AI’s Growing Thirst for Water and Power

The Driller Classifieds

COMPRESSORS

EAST WEST MACHINERY & DRILLING IS BUYING AND SELLING AIR COMPRESSORS, AIR BOOSTERS, AIR ENDS & PARTS
Company: East West Machinery

DRILL RIGS

LOOKING FOR LATE MODEL TOPHEADS & DRILLTECH D25'S
Company: Spikes’s Rig Sales

DRILL RIG PARTS

MEETING DRILLERS NEEDS AROUND THE WORLD
Company: East West Machinery

ELEVATORS

SEMCO INC. PIPE ELEVATORS
Company: Semco Inc.

GROUTERS

GROUTING EQUIPMENT - GROUT PUMPS & GROUT HOSE REELS
Company: Geo-Loop Inc.

PUMP HOISTS

SEMCO INC. - BASIC PUMP HOISTS
Company: Semco Inc.

WELL PACKERS

LANSAS PRODUCTS - INFLATABLE WELL PACKERS
Company: Vanderlans Lansas Products

WELL SCREENS

WELL SCREENS & SLOTTED PIPE
Company: Alloy Screen Works

Products

Water Quality Engineering: Physical / Chemical Treatment Processes

Water Quality Engineering: Physical / Chemical Treatment Processes

By carefully explaining both the underlying theory and the underlying mathematics, this text enables readers to fully grasp the fundamentals of physical and chemical treatment processes for water and wastewater.

See More Products

Subscribe to The Driller Newscast

Related Articles

  • Bits and Pieces

    See More
  • For Openers: News and Notes at Press Time

    See More
  • For Openers: News and Notes at Press Time

    See More
×

Dig deeper into the drilling and water supply industry!

Build your knowledge with The Driller, covering the people, equipment and technologies across drilling markets.

SIGN UP NOW
  • RESOURCES
    • Advertise
    • Contact Us
    • Directories
    • Store
    • Want More
    • Classifieds
  • SIGN UP TODAY
    • Create Account
    • eNewsletters
    • Customer Service
    • Manage Preferences
  • SERVICES
    • Marketing Services
    • Reprints
    • Market Research
    • List Rental
    • Survey/Respondent Access
  • STAY CONNECTED
    • LinkedIn
    • Facebook
    • YouTube
    • X (Twitter)
  • PRIVACY
    • PRIVACY POLICY
    • TERMS & CONDITIONS
    • DO NOT SELL MY PERSONAL INFORMATION
    • PRIVACY REQUEST
    • ACCESSIBILITY

Copyright ©2025. All Rights Reserved BNP Media.

Design, CMS, Hosting & Web Development :: ePublishing

The Driller
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
The Driller
  • NEWS
    • Water
    • Geothermal
    • Construction
    • Environmental
    • Mining
    • All Industry News
  • CLASSIFIEDS
  • EQUIPMENT
    • Rigs & Heavy Equipment
    • Consumables
    • Pumps
    • Featured Products
  • SAFETY
  • VIDEOS
    • Newscast
    • Drill Talks
    • Ask Brock
    • Emerging Drillers
  • EDUCATION
    • Drilling Business Insights
    • Reference Desk
    • Sponsored Insights
  • SOURCEBOOK
  • EVENTS
    • Conferences & Demo Days
    • Newscast LIVE
  • SUBMIT
    • Drillers @Work
  • ABOUT
    • Contact
    • Advertise
  • SIGN UP