Contract Mining Services in Australia Industry Market Research Report Now Updated by IBISWorld
Melbourne, Australia (PRWEB) February 19, 2014 -- Operators in the Contract Mining Services industry in Australia provide services that support mining production. According to IBISWorld industry analyst Caroline Finch, “demand for industry services depends on the relative advantages that mining companies derive from outsourcing production, compared with controlling production in-house.” Contract miners typically have access to a large pool of machinery and skilled employees that they leverage to win business. The strength of the Mining division is also a crucial factor in industry performance.
Over the past decade, demand for commodities has been strong. During these periods of strong demand, miners (which represent the industry's client base) shift focus to planning new capacity. The core in-house functions undertaken by mining companies include exploration, supply chain management and marketing. High value added activities, such as commodity processing, have also remained a focus for miners. As more capital is diverted to expansion activities, mining companies have increasingly outsourced their basic resource extraction operations. In the past five years, at a time when major miners have been focused on expansion, contract miners have expanded through promoting their experience with commodity extraction activities (such as drilling, blasting, loading and hauling). “The increased activity in the Mining division has also heightened the advantages contract miners hold in providing pools of highly skilled employees and specialised equipment,” says Finch. In the five years through 2013-14, the industry is forecast to expand at a compound annual rate of 9.6% to be worth $12.9 billion. Major players in the industry include Leighton Holdings Limited, Downer EDI Limited and Macmahon Holdings Limited. Market share concentration is high.
Conditions for the Contract Mining industry are changing after the strong growth in the past five years. In 2013-14, revenue growth is forecast at a low 1.8%, as mining companies shift focus from expansion to production. With the prices of key export commodities forecast to moderate in the next five years, Australian miners need to focus on low-cost production to remain competitive in the global market. As a result, miners are expected to bring contracted functions back in-house or reduce the scope of contract mining contracts. Contract miners in turn are looking at the scope of their activities and re-assessing their workforce.
For more information, visit IBISWorld’s Contract Mining Services report in Australia industry page.
Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau
IBISWorld industry Report Key Topics
Firms in this industry carry out stages of a mining operation as third parties on a fee or contract basis. Contract miners supply both machinery and skilled employees required to undertake activities on site.
Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios
About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.
Gavin Smith, IBISWorld, +61 396553838, [email protected]
Share this article