Industry Analysis & Industry Trends
Contract miners provide services that support mining production. 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 (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... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
The industry is in the growth phase of its life cycle. In the past five years, it has expanded far more rapidly than both GDP and overall Mining division revenue. Its growth reflects increased outsourcing by mining companies. Surging demand for minerals and high mineral prices from the early 2000s set provided a favourable climate for the Mining Support Services industry and led to strong growth in revenue through to 2011-12, with a tapering of growth since.
Industry value added, which measures the industry's contribution to the overall economy, is forecast to grow at a compound annual rate of 2.4% over the 10 years through 2019-20. This is a much higher rate than GDP growth in Australia over the same period, which is forecast at a compound annual rate of 2.7%... purchase to read more