Down the hole: Industry revenue plummets as demand from the mining sector collapses

The Mining and Construction Machinery Manufacturing industry has declined significantly over the past five years. The mining investment boom initially drove demand for mining machinery and equipment until falling commodity prices forced mining firms to shift their focus from investment in new capacity to resource extraction. The subsequent fall in capital expenditure on mining has weakened demand for mining machinery and contributed to declining industry revenue over the past five years. Several firms have significantly restructured their operations over the past five years, moving production offshore to take advantage of lower manufacturing costs...read more.

Industry Statistics & Market Size
Revenue
$3bn
Annual Growth 13-18
-11.7%
Forecast Growth 18-23
Profit
Employment
8,361
Businesses
730

Industry Threats & Opportunities

  • The fall in capital expenditure on mining has weakened demand for mining machinery
  • Mining machinery typically generates higher margins than more generic construction equipment
  • Industry revenue should increase as activity in downstream markets improves
  • Industry Report - Industry Key Buyers Chapter

    The industry displays moderate market share concentration, with the four largest players expected to account for approximately 47% of total revenue in 2017-18. 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 increased as some major firms have acquired smaller players.Aside from the industry's major players, many small-scale operators also manufacture mining and construction machinery. Acc...purchase to read more.

    Additional Insights for the Mining and Construction Machinery Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Mining and Construction Machinery Manufacturing Industry are

  • Establishment of brand names
  • Establishment of export markets
  • Access to the latest available and most efficient technology and techniques
  • IBISWorld analysts also discuss how external factors such as US dollars per Australian dollar and Private capital expenditure on machinery and equipment in the Mining and Construction Machinery Manufacturing industry impact industry performance..

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    What's in this report

    What is the Mining and Construction Machinery Manufacturing Industry?

    Industry firms primarily manufacture construction, earthmoving or mining machinery and equipment, and specialised parts for these types of equipment.

    Industry Products
  • Drilling rigs and equipment
  • Underground mining equipment
  • Mineral processing equipment
  • Excavators and shovels
  • Loaders and off-highway trucks
  • Parts and accessories
  • Industry Activities
  • Back hoe
  • Concrete mixer
  • Crawler, construction and earthmoving tractor
  • Crushing machinery
  • Dozer, angle dozer and bulldozer
  • Drilling machinery
  • Earthmoving machinery
  • Jackhammer
  • Mining machinery
  • Off-highway truck
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • US dollars per Australian dollar
  • Private capital expenditure on machinery and equipment
  • Actual capital expenditure on mining
  • Demand from construction

  • Current Performance
  • Revenue and profitability
  • Changing landscape
  • Competition and construction
  • Chart: Revenue Growth

  • Industry Outlook
  • Revenue and profitability
  • Mining and construction markets
  • Oil and gas markets
  • Table: Mining and Construction Machinery Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Mining and Construction Machinery Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Mining
  • Construction
  • Farm and Construction Machinery Wholesaling
  • Machinery and Scaffolding Rental

  • Key Selling Industries
  • Iron Smelting and Steel Manufacturing
  • Nut, Bolt, Screw and Rivet Manufacturing
  • Power Automation Products and Other Electrical Equipment Manufacturing

  • Products & Services
  • Excavators and shovels
  • Underground mining equipment
  • Drilling rigs and equipment
  • Loaders and off-highway trucks
  • Mineral processing equipment
  • Parts and accessories
  • Chart: Mining and Construction Machinery Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Export markets
  • Building construction markets
  • Non-building construction markets
  • Mineral mining markets
  • Oil and natural gas extraction markets
  • Chart: Major Market Segmentation for the Mining and Construction Machinery Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Mining and Construction Machinery Manufacturing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Mining and Construction Machinery Manufacturing Industry

  • Industry Globalization
    Joy Global Australia Holding Company Pty Ltd, Sandvik Australia Holdings Pty Ltd, Bradken Limited,
  • Table: Joy Global Australia Holding Company Pty Ltd - financial performance
  • Table: Sandvik Australia Holdings Pty Ltd - financial performance
  • Table: Bradken Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Mining and Construction Machinery Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Mining and Construction Machinery Manufacturing Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Continuous Miner
  • A machine with a large rotating steel drum and teeth, used mainly in coal mining.
  • Drilling Rig
  • A machine that creates shafts in the ground, which are used in the exploration and extraction of minerals, oil and natural gas.
  • Overburden
  • The rock, soil and other materials above a mining area, also referred to as waste or spoil.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Mining and Construction Machinery Manufacturing market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Mining and Construction Machinery Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Mining and Construction Machinery Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Mining and Construction Machinery Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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