The highly fragmented industry provides services, typically on a contract basis, to mining companies or their construction service providers.
Melbourne, Australia (PRWEB) December 17, 2014
Operators in the Mining Support Services industry in Australia provide specialist construction, drilling and pumping services that help downstream mining industries build infrastructure to manage water or extract oil and gas at mining sites. The industry also provides services to cement oil and gas well castings, which ensure the security and performance of oil and gas wells. According to IBISWorld industry analyst Caroline Finch, “the industry has a strong skill base that enables it to provide a range of specialist mining services, which are often not economically viable for mining companies to develop or provide in-house.” The highly fragmented industry provides services, typically on a contract basis, to mining companies or their construction service providers. Depending on project scope, the industry also provides ancillary oil and gas field support services to clients.
In the past five years, demand for industry services has been volatile, but has dipped overall as investment in expansion in most of the Mining division has slowed. “The expansion of the Oil and Gas Extraction industry has emerged as a primary driver of industry growth in the period,” says Finch. Contractions in spending elsewhere in the division have resulted in an expected revenue decline of a compound annual 6.2% over the five years through 2014-15. The industry is projected to decline a further 4.2% in 2014-15, to reach $7.3 billion. This is expected to occur as the Mining division shifts to a focus on production rather than investment, and the need for the industry's services decreases. The industry exhibits low levels of market share concentration.
As capital expenditure is winding back in most mining industries, Mining Support Services industry performance is forecast to remain volatile. Momentum in the Oil and Gas Extraction industry is expected to continue through to 2016-17, with a number of large-scale projects partly offsetting declining activity in other areas like coal mining in some years.
For more information, visit IBISWorld’s Mining Support Services industry in Australia report page.
This industry consists of units mainly engaged in providing mining support services integral to the mining process. This industry excludes contracted mining services.
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