Oil slump hasn’t hit related industries — yet

Joe Martin | Houston Business Journal

The fluctuation of oil prices has arguably been the story of the year for the energy industry, and it’s had a big impact on Houston’s oil and gas companies big and small.

But even though some bigger companies are cutting budgets and jobs, the ripple effect for companies that supplement Houston’s energy industry hasn’t hit just yet.

“No one has come in and said, ‘We were planning on doing this; now we’re not,'” said Doug Hubbard, managing partner of The Talance Group, a boutique Houston-based hiring firm that focuses on the oil and gas industry.

There haven’t been any direct cuts in business for The Talance Group as of yet, Hubbard told the Houston Business Journal, but there have certainly been whispers from people at other companies who are concerned about their employment future.

The Talance Group seems to be bucking a predicted slowdown for the Houston area.

“Houston’s economy will continue to grow in 2015, but at a slower rate than the past few years,” Patrick Jankowski, vice president of research at the Greater Houston Partnership, said in a statement announcing the annual Houston Employment Forecast released Dec. 11.

The city will add around 62,500 jobs in 2015, GHP’s forecast predicts, significantly less than the current pace of growth, in which Houston added 120,000 jobs between October 2013 and October 2014. However, the GHP calls the current pace of that job growth unsustainable.

The GHP predicts most of Houston’s job growth will occur outside the traditional economic base in industries such as health care, construction, retail and food services. The GHP forecast expects job losses to occur in energy sectors such as exploration and production, oilfield services and oilfield equipment manufacturing.

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