Needing support: Declines in major markets have caused industry revenue to plunge

The Mining Support Services industry has declined over the past five years. Industry revenue is expected to fall at an annualised 5.6% over the five years through 2018-19, to $543.9 million. This includes an anticipated decline of 3.1% in 2018-19. Industry profitability is also expected to fall over the period. Declining industry revenue is primarily attributable to a downturn in the Oil and Gas Extraction industry, which accounts for over 65% of demand for mining support services. This downturn has been caused by lower global prices and falling domestic demand as renewable energy use has increased. A large number of mining support service firms have become unviable and exited the industry as oil and gas extraction activity has fallen...read more.

Industry Statistics & Market Size
Revenue
$544m
Annual Growth 14-19
-5.6%
Forecast Growth 19-24
Profit
Employment
735
Businesses
182
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • The industry's operating environment has declined considerably over the past five years
  • The closure of mining establishments has led to lower demand for cyclical mining support services
  • Oil and gas extraction is expected to increase slightly as a source of industry demand
  • Industry Report - Industry Products Chapter

    Players in the Mining Support Services industry provide a range of services that are integral to mining operations for firms across the Mining division. Major activities include drilling (for non-exploratory purposes), maintenance and shutdown services, rehabilitation services, cementing and well casing services, and transport and other services. Each segment is divided based on its contribution to industry revenue.Drilling and cementing servicesIndustry players provide directional drilling, redrilling and cementing services for mining companies. This segment excludes drilling services conducted for mineral or petroleum exploration companies. Activities in this segment include drilling to facilitate access to proven resources, especially petroleum. Thi...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 scope
  • Proximity to key markets
  • Have a clear market position
  • IBISWorld analysts also discuss how external factors such as Capital expenditure on mining and Demand from 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 in New Zealand Industry?

    Industry firms provide mining support services that are integral to a range of mining processes. These services include construction, 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
  • Drilling and cementing services
  • Rehabilitation and other services
  • Maintenance and shutdown services
  • Transport services
  • Industry Activities
  • Concreting and general earthworks
  • 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
  • Capital expenditure on mining
  • Demand from coal mining
  • Demand from oil and gas extraction
  • US dollars per New Zealand dollar

  • Current Performance
  • Declining demand
  • Cost structure
  • Positive signs
  • Points of competition
  • Chart: Revenue Growth

  • Industry Outlook
  • Oil and gas markets
  • Other markets
  • Industry structure
  • Cost structure
  • Growth opportunities
  • 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
  • Oil and Gas Extraction in New Zealand
  • Gold Ore Mining in New Zealand
  • Gravel and Sand Quarrying in New Zealand
  • Coal Mining in New Zealand

  • Key Selling Industries
  • Heavy Machinery and Scaffolding Rental and Hiring in New Zealand
  • Industrial and Mining Machinery Wholesaling in New Zealand

  • Products & Services
  • Drilling and cementing services
  • Maintenance and shutdown services
  • Transport services
  • Rehabilitation and other services
  • Chart: Mining Support Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Oil and gas extraction companies
  • Gold ore mining companies
  • Gravel and sand quarrying companies
  • Coal mining companies
  • Iron ore mining companies
  • Other mining firms
  • 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
  • Chart: Cost Structure Benchmarking – Sector vs Mining Support Services

  • Basis of 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 (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Exploration
  • Mining exploration companies explore for new deposits of minerals or petroleum.
  • Rehabilitation
  • Mines at the end of their life cycle need to be restored as close to their original state as possible.
  • Support Services
  • Segments of the mining process that can be contracted out for greater efficiency.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Mining Support Services in New Zealand market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    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 in New Zealand:
    • 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 in New Zealand 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 in New Zealand, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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