The Effect of Rise in Oil & Gas Prices on the Tech Industry

April 18th, 2012

Rising oil and gas prices have an effect on everyone. The same is true about the IT industry. While it may not immediately seem like there is a relationship here, the fact is that the soaring prices have a real impact on the way this industry operates. Individuals looking to enter the IT field may see an impact on the available jobs. Those working within it will also see an increase in costs. For the tech industry, the impact of rising oil and gas prices has an interesting impact.

The Cost of Operation

Within the tech industry, the cost of operation will rise as the cost of gas and oil go up. While it may not have as much of an effect as it does on the trucking industry or the food service industry, it still makes an impact. The transportation of goods will become more expensive. The cost of oil and gas prices also plays a role in the secondary fields. When the cost of transporting products increases or the cost of operating machinery increases, the costs go up across the board. This is not the only impact.

Economic Concerns Continue

It is important to note that the job market in the tech industry may continue to struggle if the economy does not improve. Rising oil and gas prices have a significant impact on whether or not the economy improves. As prices increase, the pace of economic recovering will slow. Tech jobs may not be as widely available if this continues, as it will keep businesses from hiring or investing. The impact on the IT industry will match that of other industries, especially in areas of technological development, which is seen as less of a requirement and more of a luxury.

Jobs and Industry Demand

As the cost of gas and oil increase, businesses will look for more effective and cost saving ways to operate. For many companies, one way of doing this is to incorporate better technology into their business. Updating software and implementing programs that will increase productivity and decrease profit loss will be in demand. For those businesses that are trimming back the costs associated with operation, the tech industry is likely to be the go-to location for help.

In industries where there is a potential for lower operating costs if IT solutions are put into place, jobs will be more readily available. Businesses that can meet those needs better will continue to see demand rise.

Overall, there is an impact on the tech industry as the price of gas and oil continue to increase business costs. For many industries, including the IT industry, the effect is ultimately determined by the length of these increases. The longer prices continue to increase, the more significant the impact on the industry will be.

Leave a Reply