A survey of buyers and senior decision makers at more than 500 mines across the globe wide shows that most Asian and many African miners anticipate switching major equipment manufacturers in the next five years.
Conversely, the survey, which was carried out by U.K.-based data, analysis and advisory services provider Timetric, showed that Australian and North American miners are mostly satisfied with their current heavy equipment suppliers.
In the Asian market, 52% of respondents chose either “definitely yes” or “probably yes” to the question of whether they would switch suppliers in the next five years. A further 30% of participants indicated they were unsure. In another section of the survey Asian respondents highlighted product quality as the top area where suppliers could improve, followed by a desire for suppliers to reduce costs.
In Africa, 39% anticipated switching suppliers in the next five years. Attitudes in Africa mirrored those in Asia concerning cost reduction and product quality.
In Australia, 71% of those surveyed indicated they intend to stay with their current supplier. Miners Down Under further indicated a higher level of satisfaction with their current equipment arrangements.
A smaller majority (59%) of North American decision makers said they intended to keep their current equipment manufacturer, and had a relatively strong satisfaction level with their current suppliers.
For Europe and Latin America, 31% and 26% of respondents answered that they expected to switch.
“[Suppliers] looking at winning new business will find it difficult to dislodge the incumbents in markets such as Australia and the U.S.,” Timetric senior mining analyst Nez Guevara said. “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 minimization.”