Shaky ground: Volatile demand for industry services has constrained revenue growth

The Mining Support Services industry provides specialist maintenance, transport and rehabilitation services to downstream mining operations. Non-exploratory drilling is also included in the industry. Industry firms generally have strong skill bases that enable them to provide a range of specialist mining services that may not be economically viable for mining companies to develop or provide in-house. As a result, industry firms typically provide services to a range of clients across the Mining division.Industry revenue is expected to grow at an annualised 2.8% over the five years through 2017-18, to $10.2 billion. However, demand for industry services has been extremely volatile over the past five years...read more.

Industry Statistics & Market Size
Revenue
$10bn
Annual Growth 13-18
2.8%
Forecast Growth 18-23
Profit
Employment
40,698
Businesses
1,597
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Demand for industry services has been extremely volatile over the past five years
  • Limited demand and modest competition have forced many smaller firms out of the industry
  • The Mining Support Services industry is anticipated to return to growth in 2020-21
  • Industry Report - Industry Products Chapter

    Firms in the Mining Support Services industry provide services that are integral to the development, operation and rehabilitation of mining sites. These services include maintenance, transport and rehabilitation. Non-exploratory drilling is also included in the industry. Industry services are divided based on the proportion of revenue that each segment generates.Non-exploration drilling servicesThis segment includes directional drilling and redrilling. After a mineral resource has been identified through exploration drilling, non-vertical directional drilling is often used to facilitate easier access to the resource. Mine operators typically contract out directional drilling to experienced specialists that are able to identify the optimal way to access the resource. Dir...purchase to read more.

    Additional Insights for the Mining Support Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Mining Support Services Industry are

  • Economies of scale
  • Economies of scope
  • Access to highly skilled workforce
  • IBISWorld analysts also discuss how external factors such as Actual capital expenditure on mining and Demand from black coal mining in the Mining Support Services industry impact industry performance..

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    What's in this report

    What is the Mining Support Services Industry?

    Industry firms provide mining support services that are integral to a range of mining processes. These services include maintenance, transport, rehabilitation and shutdown services. Contractors that perform all operations at a mine on behalf of another entity are excluded from the industry. Exploration drilling is excluded from the industry.

    Industry Products
  • Maintenance and shutdown services
  • Transport services
  • Rehabilitation services
  • Non-exploration drilling services
  • Industry Activities
  • Concreting and general earthworks
  • Transport and haulage mining services
  • Equipment maintenance services
  • Drainage work, irrigation supply and erosion prevention
  • Environmental rehabilitation services
  • Plant shutdown services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Actual capital expenditure on mining
  • Demand from black coal mining
  • Demand from exploration
  • Demand from oil and gas extraction
  • US dollars per Australian dollar

  • Current Performance
  • Revenue fluctuations
  • Mixed fortunes
  • Gas expansion
  • Chart: Revenue Growth

  • Industry Outlook
  • Revenue and profitability
  • Opportunities and competition
  • Coal seam gas developments and legislation
  • Table: Mining Support Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Mining Support Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Black Coal Mining
  • Oil and Gas Extraction
  • Iron Ore Mining
  • Copper Ore Mining

  • Key Selling Industries
  • Machinery and Scaffolding Rental
  • Mining and Industrial Machinery Wholesaling
  • Transport Equipment and Large Vehicle Rental

  • Products & Services
  • Non-exploration drilling services
  • Maintenance and shutdown services
  • Transport services
  • Rehabilitation services
  • Chart: Mining Support Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Coal mining companies
  • Exploration companies
  • Oil and gas extraction companies
  • Other mining companies
  • Chart: Major Market Segmentation for the Mining Support Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Depreciation
  • Lease expenses
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Mining Support Services

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Mining Support Services Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Mining Support Services 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 Support Services Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Conventional Gas
  • Conventional gas deposits are found in basins and can be accessed using traditional extraction techniques.
  • Hydraulic Fracturing
  • Hydraulic fracturing, also known as fracking, is a process where pressurised water and a mix of chemicals are injected into rocks that hold gas deposits.
  • Open-Cut Mine
  • A type of mine in the shape of an inverted cone.
  • Unconventional Gas Resource
  • Unconventional gas resources such as coal seam gas are found trapped within rocks and minerals or are held in place by water.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Mining Support Services 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 Support Services:
    • 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 Support Services 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 Support Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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