A recent survey by Timetric’s Mining Intelligence Center (MIC) indicates over half of the miners in Asia are likely to change to a different OEM within the next five years, whereas miners in Australia and North America are more loyal to current OEMs.
The survey involved buyers and senior decision makers from over 500 mines globally. The respondents were asked to outline their expectations towards changing their major equipment manufacturer in the next five years.
Mining companies in Australia indicated the lowest intention to switch OEMs. 71% of respondents indicated ‘definitely yes’ and ‘probably yes’ to stay will current suppliers. Following this, 59% of North American miners indicated they would keep the same manufacturer.
On the other hand, miners in Asia responded the highest in terms of potentially switching suppliers. with 52% citing both ‘definitely yes’ and ‘probably yes’. This region also had the greatest share of respondents who were unsure - with 30%. This provides equipment manufacturers with a large opportunity to win business in the Asian market. The second highest for switching suppliers was Africa with 39% of respondents reported a potential switch.
Both Africa and Asia indicated the ability to support cost reduction and product quality as crucial areas where suppliers need to improve.
Nez Guevara, Senior Mining Analyst at Timetric’s MIC, explained: “Mining companies are continuing to reduce costs and as a result are limiting their investment in new equipment while focusing on improving current equipment utilisation. OEMs looking at winning new business will find it difficult to dislodge the incumbents in markets, such as Australia and the US, but better opportunities exist in Asia and Africa provided they can deliver in areas such as product quality and reliability, and by supporting mining companies with cost minimisation.”
Edited from press release by Harleigh Hobbs
Read the article online at: https://www.worldcoal.com/mining/29072015/miners-in-asia-and-africa-more-likely-to-change-oems-2652/