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Purchasing Trends and Intentions for Mining Equipment, Parts and Consumables in Australia, 2016

Purchasing Trends and Intentions for Mining Equipment, Parts and Consumables in Australia, 2016

  • March 2016
  • 38 pages
  • ID: 3839407
In this report:
Table ##: Those Who Have Global Preferred Supplier Arrangements for Plant, Equipment or Supplies (%), Q## 2015

Summary

Table of Contents

Purchasing Trends and Intentions for Mining Equipment, Parts and Consumables in Australia, 2016

Brief

Global trends in the information revealed -

- With spending under pressure, Australian respondents expect stability with their expenditure, with just over half predicting similar levels of spending in 2016 as in 2015.

- Some 84.0 percent of respondents expect no change in the number of supplier relationships over the next 12 months. For those expecting changes, 12.0 percent expect a reduction in the number of suppliers.

- On average, 68.0 percent of respondents make final decisions about the purchase of a range of equipment and consumables at the mine site.

- Some 62.0 percent of respondents indicated they had a preferred overall supply agreement for plant, equipment and supplies. Results show that these agreements become less frequent as the size of the mining company decreases.

- 36.0 percent of respondents identified that their biggest challenge when sourcing products were factors related to supplier attributes and capabilities, including availability of parts, logistics and lead times, after-sales servicing and maintenance, and technical support.

- Outright purchasing leads the way and was the most common purchasing method, with 75.0 percent of respondents nominating this as their desired purchasing method.

- 40.0 percent of respondents nominated 'operation and maintenance' as their favored service contract structure for heavy equipment purchased. 'Maintenance only' and 'lifecycle management' contracts were only chosen by 15.0 percent of the respondents.

Overview

- This industry report offers An in-depth study of purchasing methods and spending trends for Australian mines across plant and heavy equipment, equipment parts and components, drilling and blasting consumables, maintenance services and IT software, hardware and services.

- Survey respondents came from seven distinct states and territories, with Western Australia, Queensland and New South Wales accounting for 88.0 percent of the respondents. This included four principal commodity groups and a range of surface and underground mining operations.

Great reasons to purchase

- Compare the methods Australian miners use to acquire equipment.

- Plan ahead based on general expectations within the Australian mining industry for future expenditure, and how this varies by segment, including mine type, commodity, company revenue and state.

- Understand future plans in the Australian mining industry to rationalize or extend their supplier networks.

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

- Identify the main challenges Australian miners face when sourcing equipment, and incorporate solutions to these in your sales, marketing and product strategies.

- Comprehend the types of service contract structures Australian miners prefer for their heavy mobile equipment.

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