Benchmarking Global Mining Equipment Suppliers, 2015
This report examines the global performance of 10 major heavy mobile equipment suppliers: Caterpillar, Joy Global, Komatsu, Hitachi, Sandvik, Atlas Copco, Volvo, Liebherr, BEML and L&T. Each of these companies had significant growth through the mining super-cycle from 2007 to 2012. Yet they now face challenging market conditions amid slumping commodity markets and a global reduction in capital expenditure.
The report is based on responses from a survey of over 600 senior managers at operating mines throughout the world, responsible for the purchase of mining equipment, and examines their level of satisfaction with their main equipment suppliers as well as key factors in supplier selection.
Areas of analysis include:
o Review of the financial performance of each company.
o Review of global customer satisfaction, with satisfaction ratings from 16 factors, covering cost factors, supplier attributes and product attributes.
o Rankings of the leading suppliers for each equipment type, with respondents indicating who they viewed as the top suppliers for trucks, excavators, loaders, shovels, dozers, drills, continuous miners, engines, tyres, pumps and mining software.
o For the six companies compared, revenues in 2014 were down for most companies for their mining divisions. Most of the reduction in revenue came from regions such as Asia and Australasia, whilst there was more growth for companies in Africa and Latin America.
o The decline of new equipment sales and increased focus on maximizing the value from existing assets has led to a substantial increase in the share of revenues from the aftermarket sector. This is typified by Joy Global whose aftermarket share of revenues grew from 52% in 2012 to 69% in 2014.
o Within the global market, Caterpillar was consistently ranked by respondents as the leading equipment supplier for trucks, excavators, dozers and loaders. Caterpillar was typically followed by Komatsu in each of these equipment types.
o Respondents were asked about how their current supplier differentiated itself from its competitors as part of the selection process. The largest differentiators were ‘better timing of contact’, ‘better ability to build a long-term relationship’, ‘better maintenance and service provision’, ‘better understanding of your needs’ and ‘better track record/expectation of delivery’.
o The top two factors for both importance and satisfaction throughout the surveys were ‘product quality/reliability’ and ‘availability of spare parts’. While Liebherr has the highest global satisfaction average rating, this was based on a relatively small sample, and it was Caterpillar and Komatsu who consistently got the high average ratings for these factors.