Mining-equipment manufacturers in the United States should familiarize themselves with the global market and its influences on their industry.
By doing so, they can gain perspective on their industry by following some some key statistics. With that in mind, let's take a look at how the global market is having an impact on the industry.
Market in Perspective
The U.S. industry comprises 331 companies providing 14,489 jobs. According to MNI, compiler and publisher of the industrial data that powers IndustryNet, there were 12,772 jobs one year ago, a decrease of 2.22%. The average industry sales are $5.21 billion. One year ago, the sales figure was $5.18 billion, indicating a growth of just 0.57%.
Other specific figures showing how the industry has changed, compared with U.S. manufacturing as a whole:
• 4% of companies (14) report employment increases, U.S. manufacturing 4%
• 5% of companies (17) report an employment decline, U.S. 4%
• 2% of companies (6) report sales growth, U.S. 1%
• 8% of companies (25) report a sales decline, U.S. 1%
In mining and in U.S. manufacturing as a whole, 2% of companies are women-owned and 1% are minority-owned.
Mining equipment and U.S. manufacturing diverge, however, when it comes to domestic versus international distribution.
Of all manufacturing, 70% focuses on U.S. distribution, 29% on international. Among mining-equipment manufacturers, however, only 46% of focus on domestic distribution, a majority of 53% on international.
That focus on international distribution makes the mining equipment manufacturing industry particularly susceptible to changes in the global market.
Use of Minerals in Clean Energy Drives Demand
Some of the demand experienced by the firms is a direct result of an emphasis on clean energy, since the global market has an increasing demand for the minerals used to produce it.
Experts predict the demand will continue to increase as more electric vehicles are produced. An estimated 41 million electric vehicles will be produced worldwide by 2040.
To create them and and other clean-energy sources, producers will need:
• Aluminum
• Iron
• Lead
• Cobalt
• Lithium
• Nickel
• Manganese
• Platinum
• Silver
• Gold
• Palladium
Of course, they must be extracted from the Earth, mining companies do that and they need mining equipment to do so.
Increased Consumption of Natural Resources
The growing demand for and consumption of other natural resources also drives the mining-equipment market. As the demand for coal, uranium and diamonds increases, so does the need for equipment to mine and process them.
Increased Demand for Automation
The global market has also created an increased demand for automation and the use of artificial intelligence (AI) in mining equipment manufacturing.
More than ever, companies demand machines with minimal downtime and the improved efficiency that can be afforded by AI and automation.
Regulations Can Hinder Growth
On the other hand, potential government regulations to address safety and environmental concerns can limit the types of mining equipment produced, increasing costs or reducing demand.
The favorable demand factors, however, sufficiently counter that impact, according to experts.
The mining equipment manufacturing industry in the United States registers 5.21 billion in annual sales, providing a sizable impact on U.S. manufacturing as a whole.
Various global market factors, from automation to the move for clean energy, affect the industry.
About MNI Industry Data
As U.S. manufacturing evolves, MNI continually updates information on over 400,000 U.S. manufacturers and suppliers of more than 10,000 products and services, providing vital information for industrial sourcing and purchasing as well as industrial prospecting, sales, and business development.
IndustryNet is an industrial marketplace that helps industrial buyers connect with suppliers. Request quotes, get in contact with key personnel or simply see where providers are located. Expert researchers work to provide the most up-to-date information.
All data is analyzed and compiled by humans so you can be sure you're getting accurate information. IndustryNet also offers marketing solutions to improve visibility for industrial buyers. Learn more about IndustryNet's marketing solutions.
