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Synopsis
This report provides a detailed analysis of purchasing methods and spending trends in North American mining. Areas of analysis include:

- Future trends in expenditure and expectations for increased or decreased spend in four areas: plant and heavy equipment, equipment parts and components, explosives materials, and maintenance services.

- Current methods for acquiring equipment, with a review of outright purchasing, rental, leasing and other types of financing arrangements.

- An analysis of future changes to the number of supplier relationships, and whether respondents expect greater or fewer supplier relationships over the next 12 months.

- Investigation into the biggest challenges facing buyers and decision makers in sourcing the right products.

- Analysis of current decision making practices at North American mines

- The extent to which preferred supplier arrangements are in place and predictions for increased centralisation of procurement.

Summary
Overall trends in the data revealed:

- Respondents from mines in North America expect stability in their expenditure. The majority of respondents expect spending to be flat, for instance 56% for ‘plant and heavy equipment’

- Outright purchase is the most common purchasing method. Some 69% of respondents nominated outright purchase as the method they use for heavy mining equipment. This was the dominant method of procurement, with all other methods being used by fewer than 27% of respondents in each case.

- 67% of respondents identified that their biggest challenge when sourcing products were factors related to supplier attributes and capabilities, such as the availability of spare parts and dealing with remote locations.

- In North America, the majority of decisions are still made at the mine site, accounting for around 65% of all final decisions.

- Over 28% of respondents expected more centralization of purchasing decisions over the next two years.

- Some 55% of respondents indicated they had a preferred global supply agreement, and when responses were broken down by type of purchase covered by the preferred supplier, trucks dominated.

Scope
The survey is based on responses from 101 senior managers and decision makers at North American mines, responsible for the purchase of equipment for plant within mine operations, along with its consumables. Survey respondents came from either Canada or the United States. This included 4 different commodity groups and a range of surface and underground mining operations.

Reasons To Buy
- Compare the methods miners in North America use to acquire equipment, and how this is expected to change

- Plan ahead based on general expectations within the North American mining industry for future expenditure, and how this varies by segment, such as mine type, commodity, company size and region.

- Understand how different customer segments in the North American mining industries Plan to rationalise or extend their supplier networks.

- Understand where decision making is made, be that at either the mine site or corporate head office.

- Identify the major challenges miners in North America face when sourcing equipment, and incorporate solutions to these in your sales, marketing and product strategies

Key Highlights
- Respondents from mines in North America expect stability in their expenditure. The majority of respondents expect spending to be flat, for instance 56% for ‘plant and heavy equipment

- Outright purchase is the most common purchasing method. Some 69% of respondents nominated outright purchase as the method they use for heavy mining equipment. This was the dominant method of procurement, with all other methods being used by fewer than 27% of respondents in each case.

- 67% of respondents identified that their biggest challenge when sourcing products were factors related to supplier attributes and capabilities, such as the availability of spare parts and dealing with remote locations.

- In North America, the majority of decisions are still made at the mine site, accounting for around 65% of all final decisions.

- Over 28% of respondents expected more centralization of purchasing decisions over the next two years.

- Some 55% of respondents indicated they had a preferred global supply agreement, and when responses were broken down by type of purchase covered by the preferred supplier, trucks dominated.

Table Of Contents

Purchasing Trends and Intentions in Mining in North America, 2015
Table of Contents
1 Executive Summary
2 Future Spending Predictions
2.1 Expected Changes in Expenditure
2.2 Expected Changes in Expenditure by Country
2.3 Anticipated Changes to the Number of Supplier Relationships
3 Current Purchasing preferences
3.1 Purchasing Methods for Heavy Mobile Equipment
3.2 Rental Agreements
4 Challenges In Sourcing Products
5 Centralization and Preferred Suppliers
5.1 Current Decision Making
5.2 Changes in Centralization
5.3 Preferred Supplier Arrangements
5.4 Prevalence of Dominant Single Suppliers
6 Conclusion
7 Appendix I
8 Appendix II
8.1 Survey Background
8.2 Analysis of the Survey Sample
9 Appendix III
9.1 What is This Report About?
9.2 Methodology
9.3 Secondary Research
9.4 Primary Research
9.5 Definitions
9.6 Contact Timetric
9.7 About Timetric
9.8 Timetric's Services
9.9 Disclaimer

List of Tables
Table 1: Expected Change in Expenditure by Area in the Next 12 Months (%), 2015
Table 2: Expected Change in Expenditure by Area in Next 12 Months by Country (%), 2015
Table 3: Share of Respondents Expecting an Increase in Expenditure by Company Size (%), 2015
Table 4: Share of Respondents Expecting an Increase in Expenditure by Commodity (%), 2015
Table 5: Changes in the Number of Supplier Relationships Expected in the Next 12 Months (%), 2015
Table 6: Changes in the Number of Supplier Relationships by Country (%), 2015
Table 7: Changes in the Number of Supplier Relationships by Commodity, 2015
Table 8: Changes in the Number of Supplier Relationships by Commodity, 2015
Table 9: Expected Change in Purchase Method in the Next Two Years (%), 2015
Table 10: Purchasing Method by Category (%), 2015
Table 11: Biggest Challenges in Sourcing Products, 2015
Table 12: Biggest Challenges in Sourcing Equipment by Company Size (%), 2015
Table 13: Current Location of Decision-Making, 2015
Table 14: Current Location of Decision-Making for Heavy Mobile Equipment by Company Size, 2015
Table 15: Current Location of Decision-Making for Heavy Mobile Equipment by Commodity, 2015
Table 16: Changes Expected in Level of Centralization Over the Next Two Years, 2015

List of Figures
Figure 1: Operating Mines in the US and Canada, 2015
Figure 2: Changes in Expenditure by Category over the Next 12 Months, 2015
Figure 3: Changes in Expenditure by Category over the Next 12 Months by Country, 2015
Figure 4: Increase vs Decrease in Expenditure by Category (%), 2015
Figure 5: Expected Increase in Expenditure by Company Size (%), 2015
Figure 6: Expected Increase in Expenditure by Commodity (%), 2015
Figure 7: Key Commodity Prices, 2010-2015 (Indexed)
Figure 8: Changes in the Number of Supplier Relationships Expected Over the Next 12 Months, 2015
Figure 9: Changes in the Number of Supplier Relationships by Country, 2015
Figure 10: Changes in the Number of Supplier Relationships Expected Over the Next 12 Months by Commodity, 2015
Figure 11: Changes in the Number of Supplier Relationships Expected Over the Next 12 Months by Region, 2015
Figure 12: Purchasing Methods Used (%), 2015
Figure 13: Other Purchasing Methods in Combination with Outright Purchase (%), 2015
Figure 14: Other Purchasing Methods in Combination with Rental (%), 2015
Figure 15: Purchasing Method by Mine Type (%), 2015
Figure 16: Purchasing Method Type by Company Size (%), 2015
Figure 17: Purchasing Method Type by Commodity Type (%), 2015
Figure 18: Purchasing Method Type by Country (%), 2015
Figure 19: Share of Use of Rental Agreements by Company Size (%), 2015
Figure 20: Biggest Challenges in Sourcing Products, 2015
Figure 21: Biggest Challenges in Sourcing Equipment by Company Size (%), 2015
Figure 22: Current Location of Decision Making, 2015
Figure 23: Current Location of Decision Making for Heavy Mobile Equipment by Company Size, 2015
Figure 24: Current Location of Decision Making for Heavy Mobile Equipment by Commodity, 2015
Figure 25: Changes Expected in Levels of Centralization Over the Next Two Years, 2015
Figure 26: Preferred Supplier Arrangement, 2015
Figure 27: Preferred Supplier Arrangement by Type of Purchase, 2015
Figure 28: Preference for Dominant Single Supplier, 2015
Figure 29: Preference for Dominant Single Supplier by Company Size (%), 2015
Figure 30: Use of Dominant Single Supplier by Commodity (%), 2015
Figure 31: Survey Respondents by Country (%), 2015
Figure 32: Survey Respondents by Mine Type (%), 2015
Figure 33: Survey Respondents by Commodity (%), 2015

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