Synopsis
Overall trends in the data revealed:
The outlook for future expenditure on mining equipment and services is positive. Whilst the majority of respondents expect no change in spend, over a quarter plan to increase expenditure in all areas, including plant and heavy equipment, maintenance services, equipment parts and components and explosives, blasting materials and chemicals, with best opportunities for suppliers in Scandinavia and the former Soviet Union.
Outright purchase is the most common purchasing method. Some 68% 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 20% of respondents in each case.
Challenges in sourcing the right products are related to supplier attributes and capabilities. Some 67% of respondents identified that their biggest challenge when sourcing the right products were factors related to supplier attributes and capabilities, such as the availability of spare parts and on-time delivery.
Scope
The survey is based on responses from 100 senior managers and decision makers at European and former Soviet Union mines, responsible for the purchase of equipment for plant within mine operations, along with its consumables. Survey respondents came from 23 different countries: Albania, Armenia, Belgium, Bosnia, Cyprus, Finland, France, Germany, Greece, Ireland, Kazakhstan, Macedonia, Norway, Poland, Portugal, Romania, Russia, Slovakia, Spain, Sweden, Turkey, Ukraine and the United Kingdom. This included 4 different commodity groups and a range of surface and underground mining operations.
Summary
This report provides a detailed analysis of purchasing methods and expected expenditures for European and the former Soviet Union mines. Areas of analysis include:
• Current methods for acquiring equipment, with a review of outright purchasing, rental, leasing and other types of financing arrangements.
• 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.
• 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.
• Extent to which preferred supplier arrangements are in place and predictions for increased centralisation of procurement.
Reasons To Buy
Compare The methods miners in Europe and former Soviet Union use to acquire equipment, and how this is expected to change
Plan ahead based on general expectations within the European and the former Soviet Union 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 European and former Soviet Union mining industries plan to rationalise or extend their supplier networks Identify the major challenges miners in Europe and the former Soviet Union face when sourcing equipment, and incorporate solutions to these in your sales, marketing and product strategies
Key highlights
The outlook for future expenditure on mining equipment and services is positive. Whilst the majority of respondents expect no change in spend, over a quarter plan to increase expenditure in all areas, including plant and heavy equipment, maintenance services, equipment parts and components and explosives, blasting materials and chemicals, with best opportunities for suppliers in Scandinavia and the former Soviet Union.
Outright purchase is the most common purchasing method. Some 68% 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 20% of respondents in each case.
Challenges in sourcing the right products are related to supplier attributes and capabilities. Some 67% of respondents identified that their biggest challenge when sourcing the right products were factors related to supplier attributes and capabilities, such as the availability of spare parts and on-time delivery.
Table Of Contents
1 Executive Summary
2 Future Spending Predictions
2.1 Expected Changes in Expenditure
2.2 Over 25% Expect Spending Across all Categories to Increase
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 The Right Products
5 Centralization and Preferred Suppliers
5.1 Changes in Centralization
5.2 Preferred Supplier Arrangements
5.3 Preference for a Dominant Single Supplier
6 Conclusion
7 Appendix I
7.1 Survey Background
7.2 Analysis of the Survey Sample
8 Appendix II
9 Appendix III
9.1 What is This Report About?
9.2 Methodology
9.3 Contact Timetric
9.4 About Timetric
9.5 Disclaimer
List Of Tables
Table 1: Main Purchasing Method (%), 2014/15
Table 2: Expected Change in Expenditure by Area in Next 12 Months (%), 2014/15
Table 3: Changes in the Number of Supplier Relationships Expected in Next 12 Months (%), 2014/15
List Of Figures
Figure 1: Operating Mines in Key Countries, 2015
Figure 2: European Production of Key Commodities, 2008-2020
Figure 3: Changes in Expenditure by Category, 2014/15
Figure 4: Increase vs Decrease in Expenditure by Category (%), 2014/15
Figure 5: Increase in Expenditure by Region (%), 2014/15
Figure 6: Expected Increase in Expenditure by Commodity (%), 2014/15
Figure 7: Key Commodity Prices (Indexed), 2010-2014
Figure 8: Changes in the Number of Supplier Relationships Expected Over the Next 12 Months, 2014/15
Figure 9: Changes in the Number of Supplier Relationships Expected Over the Next 12 Months by Commodity, 2014/15
Figure 10: Changes in the Number of Supplier Relationships Expected Over the Next 12 Months by Region, 2014/15
Figure 11: Main Purchasing Method (%), 2014/15
Figure 12: Other Purchasing Methods in Combination with Outright Purchase (%), 2014/15
Figure 13: Other Purchasing Methods in Combination with Rental Agreements (%), 2014/15
Figure 14: Purchasing Method by Mine Type (%), 2014/15
Figure 15: Purchasing Method Type by Company Size (%), 2014/15
Figure 16: Purchasing Method Type by Commodity Type (%), 2014/15
Figure 17: Purchasing Method by Geography (%), 2014/15
Figure 18: Purchasing Method Type by Company size (%), 2014/15
Figure 19: Biggest Challenges in Sourcing the Right Products, 2014/15
Figure 20: Biggest Challenges in Sourcing the Right Equipment by Company Size (%), 2014/15
Figure 21: Changes Expected in Level of Centralization Over 2014/15
Figure 22: Expected Increase in Level of Centralization by Company Size, 2014/15
Figure 23: Preferred Supplier Arrangement, 2014/15
Figure 24: Preferred Supplier Arrangement by Type of Purchase, 2014/15
Figure 25: Preference for Dominant Single Supplier, 2014/15
Figure 26: Preference for Dominant Single Supplier by Company Size (%), 2014/15
Figure 27: Use of Dominant Single Supplier by Commodity (%), 2014/15
Figure 28: Survey Respondents by Country (%), 2014/15
Figure 29: Survey Respondents by Mine Type (%), 2014/15
Figure 30: Survey Respondents by Commodity (%), 2014/15
