Expanding economic activity will drive demand for mining engineering services, and stabilizing input prices will slow annualized price growth over the next three years.
Los Angeles, CA (PRWEB) January 19, 2014
Mining engineering services have a buyer power score of 3.5 out of 5. In the three years to 2013, the recovering US economy has led to overall renewed demand for mining operations, which in turn has fueled an upward trend in prices for mining engineering services. “The need for mining engineering services is anticipated to remain stable over the next three years due to consistent demand from downstream industrial production and construction markets, as well as greater electric power consumption, which serves as a catalyst for mining solutions and improved operational efficiencies,” says IbisWorld business research analyst Agiimaa Kruchkin. This demand growth has been favorable for suppliers, and prices are expected to continue rising, albeit slowly, in the three-year period through 2016.
There is a wide range in price for mining engineering services, which makes it challenging for buyers to budget their costs. Buyer negotiating power is further weakened due to constantly evolving, stringent regulatory requirements. Mining engineering services are also highly specialized and require operators to create customized solutions for buyers, restricting buyer power. “Furthermore, the availability of substitute services is low, as operators provide highly skilled talent to provide mining engineering solutions,” says Kruchkin.
Price and driver volatility for mining engineering services have been low to moderate over the past three years, which means buyers have not experienced significant risk of sudden price shifts. The supply chain for vendors poses moderate risk for buyers, with some risk coming from the fluctuations in price for various inputs, such as crude oil. In the three years to 2016, buyers will not face a high degree of risk with the supply chain, assuming that downstream demand remains stable and regulations change at a moderate pace. Buyers should determine the need and frequency for mining engineering services and then enroll in plans to help mitigate long-term costs and rising prices. Major vendors include Bechtel Corporation, Fluor Corporation, KBR Inc. and URS Corporation. For more information, visit IBISWorld’s Mining Engineering Services procurement research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of mining engineering services. Suppliers of mining engineering services help buyers with the development of mine design, planning and optimization using mine planning software packages, preparing feasibility studies, overseeing mine equipment engineering and planning, mining equipment maintenance and optimization, optimization of opencast mining, manufacturing and assembly supervision, mine drainage design and coal beneficiation, among other services. Mining engineers also assist with managing landfills and water treatment facilities. This report excludes oil and gas engineering services.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Vendor Financial Benchmarks
Buying Lead Time
Key RFP Elements
Buyer Power Factors
About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.