Industry Analysis & Industry Trends
In the five years through 2014-15, the Oil and Mineral Exploration Drilling industry has followed a volatile growth path. The industry provides services for mining companies engaged in greenfield oil and mineral exploration. This is the riskiest area of the Mining division, where companies are engaged in looking for new and economically viable deposits of resources. Expenditure on greenfield exploration fluctuates significantly year on year in line with small miners' ability to access capital. When commodity prices fall or sentiment around the Mining division declines demand for greenfield exploration services rapidly adjusts. In 2011-12 and 2012-13, drops in demand have resulted in contractions in industry revenue... purchase to read more
Industry Report - Industry Investment Chapter
The industry's capital intensity is medium. In 2014-15, IBISWorld expects that for every dollar spent on capital, the industry will spend $5.55 on wages. The relative labour intensity of the industry has increased in the past five years. Skills shortages have resulted in the average industry wage increasing faster than the industry spending on capital equipment. In-demand professionals, such as mechanical engineers and geologists, are employed by the industry. As a consequence, the wage spend is significant.
Industry operators buy and lease capital equipment when demand for industry services increases suddenly... purchase to read more