Over 700 Engineering Empolyess Are Changing Their Business Cards - Again.

Burrow Global, LLC, a Full-Service EPC Firm, Acquires Furmanite Technical Solutions

Burrow strengthens technical services staff for core process industries

HOUSTON (SEPTEMBER 23, 2015) - Burrow Global, LLC (BG) announced today that it has entered into an agreement to purchase the assets, contracts and certain liabilities of Furmanite Technical Solutions (FTS), a division of Furmanite America. The transaction is scheduled to close on September 28, 2015.

In conjunction with the closing of the transaction, approximately 775 full-time FTS professionals will transition to Burrow Global Services (BGS) a wholly owned subsidiary of parent company Burrow Global, LLC. The combination will increase BGS’ engineering and technical staff to approximately 1200 personnel and the Burrow Global companies will employ nominally 1400 EPC employees. BG will combine the FTS and BG offices in Beaumont and Deer Park, TX and Baton Rouge, LA while obtaining new offices in Lake Charles, LA and Angleton, TX.

“We see this as a true win for all involved including FTS, BG, our clients and our respective employees”, said Mike Burrow, Chairman/CEO of Burrow Global, LLC. “The FTS division was formerly the Gulf Coast operations of ENGlobal Corp and before that it was the legacy ‘Petrocon Engineering’ group. BG’s current senior management team includes former executives from both of those organizations. Additionally, I was the founder and CEO of Petrocon Engineering and also Co-founder and CEO of ENGlobal before coming out of retirement to establish the Burrow Global companies. With that history in mind, this union will be more like a ‘reunion’ of the original staffs of Petrocon, ENGlobal and BG. We look forward to working with our colleagues and friends once again as we unite in our common goal of establishing strong client relationships based on superior performance and safety. The combined organization will offer our clients more technical resources and geographical coverage. This greatly enhances our ability to service our clients’ needs across multiple locations while establishing a platform to better perform their major projects.”

Stock Market Instability + Fixing America

So what is new everyone? Has ENGlobal made a sudden corporate viability change? No. The markets are progressing through what should have happened a long time ago. Since the crash of 2008 we have had some unusual and never seen before conditions.

Business has not been great despite what the White House conveys. Sure, it has been great for select companies in certain sectors but not for the overall economy. The White House and other government agencies have been expressing that business is better than it really is and the main supporting ‘evidence’ they point to is the stock market. This illumination is purely to support the erroneous stance that they, this administration, have improved the economy.

My opinion is that any repair in the economy is nothing more than what would have happened naturally. I also think it would have been much better if some definitive action had taken place to repair it. Has anyone ever see anybody from that economic dream team that Obama put together (including Warren Buffett) and paraded behind him during his first campaign? Of course not, yet I digress.

Q: So what has been holding up the markets for years since the crash?
A: TARP money.

Review history and you will find George Bush started to unleash money to prevent banking and institutions from collapsing. If credit failed our economy would crash – we all get that. Enter Obama a few months later and the Federal Reserve doors went wide open. Further review later testimony from the OMB chiefs before Congress that they lost track of the money – they did not how much money was given out and to whom! This was their job and they failed to keep track of the money. Estimates ranged well into the trillions.

It is easy to figure out where the money is. A percentage of it is invested in the markets and has been holding it up for years in a bad economy. The rest resides in those investing banks and institutions and has been backing them up with a ‘no fear attitude’ helping to keep markets high. The TARP money has created a bubble of sorts that only widespread concern and true economic realization can begin to influence it. That is what happens from time to time with increasing degrees.

A falling tide lowers all ships and that is what is happening to ENGlobal. It is a better company now, albeit smaller, since Mr. Coskey took over. Cutting out dead wood and shaping it up to something better controlled is the first order of business – he did that. Reducing lower profit operations and replacing them with higher margin profit sectors, he is doing that too. That is what the offshore work and automation push is all about. Debt was erased. And this folks is a survivable model for bad times. The next phase is more expansion into higher margins via target acquisitions to get the company value up. That will show up in the future. So you have a good company and it is admirable the price is even held up this well. It’s hard to pick a bottom but it’s a buy.

So what do we need fixed? A new President that will help build business in this country is #1! You may have the strongest military, the most nuclear weapons, many powerful ships or any other measurement of power; but if you fail economically – you are done. This is precisely how the USSR collapsed.

Ignore all the side issues in the political banter. Forget all the side shows about topics that do not affect our economy. The candidate that needs to be elected will not be perfect for any one person. That candidate will have to fix our economy and have the guts to stand up to the present system that has been serving itself instead of the population they are supposed to serve. Once the economy is in repair do we then have the latitude to entertain other issues that are distracting us now from our economic problems. God Bless America. And help us to help ourselves.

Pilot out.