Industry Analysis & Industry Trends
The Mining and Construction Machinery Manufacturing industry has declined over the past five years. The first stage of Australia's mining investment boom initially drove demand for mining machinery and equipment, until mining firms began to shift their focus to resource extraction. This reduced investment weakened demand for mining machinery and has subsequently contributed to declines in industry revenue. Several firms have significantly restructured over the past five years, moving production offshore to take advantage of lower manufacturing costs. Bradken's Henderson foundry in Western Australia wound down operations in 2014-15, and Caterpillar exited from the industry following the closure of its Tasmanian Burnie foundry in March 2016... purchase to read more
Industry Report - Industry Key Buyers Chapter
The industry displays moderate market share concentration, with the four largest players estimated to account for nearly 50% of total revenue in 2016-17. The major players tend to be large multinational corporations that benefit from having global supply chains. Operating locally has traditionally allowed firms to effectively service domestic mining sites and provide technical support. Over the past five years, market share concentration has remained at a moderate level.
Aside from the industry's major players, many small-scale operators also manufacture mining and construction machinery. According to the ABS, in 2014-15 over 75% of industry enterprises generated less than $2 million in revenue and only nine firms had more than 200 employees... purchase to read more