Mining Companies Less Optimistic About Revenue Growth in 2013, Profitability Impacted by Rising Labor and Energy Costs
FARMINGTON, Conn., Jan. 31, 2013 /PRNewswire-iReach/ — Profitability in the global mining industry is impacted by issues such as rising raw material, energy, and labor costs, which are creating cost pressures on operations. According to a new survey available on GiiResearch.com, the top three priorities for global mining industry buyer respondents in 2013 are ‘improving operational efficiency’, ‘expand in current markets’, and ‘focus on sustainability’. The top priorities for the global mining industry in 2012 were ‘improving operational efficiency’, ‘expanding in current markets’ and ‘concentrating on new products and services’, while the emphasis in 2011 was on the ‘expansion of business abroad’.
Overall, executives from the global mining industry anticipate an increase in the levels of consolidation, with 54% of respondents projecting an increase in merger and acquisition (M&A) activities in 2013. In an attempt to increase profitability and ensure the effective utilization of cash, companies in the mining industry are streamlining portfolios by divestment and the sale of non-core assets. Volatility and uncertain conditions in a turbulent financial environment have decreased the risk absorption capacity of companies, which drives collaborations and partnerships among companies that differ in size and capacity. Moreover, the survey reveals that 53% of buyer respondents have highlighted that they anticipate an increase in merger and acquisition activity in 2013.
Global Mining Survey 2013-2014 – Market Trends, Buyer Spend and Procurement Strategies in the Global Mining Industry
The average size of the global annual procurement budget among mining industry buyers is forecast at $78 million for 2013. A comparison of global procurement budgets by operating region shows that global mining industry buyers with leading operations in North America have the highest average procurement budgets in 2013, at US$156 million. Despite these values, optimism for revenue growth have declined from 2012 levels. Throughout the global mining industry, 44% of respondents are ‘more optimistic’ about revenue growth in 2013, compared to 54% in 2012. Although a significant percentage of respondents are confident about their companies revenue growth over the next 12 months, optimism levels have decreased in comparison to 2012, 2011, and 2010; the reasons behind this are volatility in commodity prices, the slowing pace of growth in China, and the continuance of the European debt crisis. Additionally, an analysis of respondent expectations by company type reveals a decrease of 6 percentage points in the optimism levels of buyers in 2013 compared to 2012, and 11 percentage points decrease for suppliers.
An Executive Summary for this report and free sample pages from the full document are available at http://www.giiresearch.com/report/icd234156-global-mining-survey-2012-2013-market-trends-buyer.html
Global Mining Survey 2013-2014 – Market Trends, Marketing Spend and Sales Strategies in the Global Mining Industry
The average size of annual marketing budgets of mining industry suppliers was recorded at $3.3 million in 2012, and has decreased to $2.5 million in 2013. Mining suppliers that operate in Asia-Pacific have the highest average budgets of $4.5 million in 2013. Respondents with leading operations in North America and the Rest of the World have the next-largest average budgets estimated at $2.4 million and $1 million respectively.
This report provides data and analysis on global mining industry suppliers’ media spend, marketing and sales strategies, and practices and business planning within the global mining industry. Key topics discussed include media channel spending outlooks, media budgets, marketing agency selection criteria, business challenges, and sales tactics of leading suppliers within global mining industry. Use this report to formulate effective sales and marketing strategies by identifying how suppliers’ marketing budgets are changing and the direction of spend in the future.
An Executive Summary for this report and free sample pages from the full document are available at http://www.giiresearch.com/report/icd234157-global-mining-survey-2012-2013-market-trends.html
Mining Monthly Deal Analysis – December 2012: M&A and Investment Trends
This report provides detailed information on partnership and licensing transactions, M&A’s, equity/debt offerings, private equity, and venture financing registered in the mining industry in December 2012. The report portrays detailed comparative data on the number of deals and their value in the last six months, subdivided by deal types, various commodities, and geographies. Additionally, the report provides information on the top financial advisory firms in the mining industry.
An Executive Summary for this report and free sample pages from the full document are available at http://www.giiresearch.com/report/gd242676-mining-monthly-deal-analysis-april-2012-m.html
For metal mining industry outlooks and forecasts, please visit http://www.giiresearch.com/topics/MR06_en.shtml
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