Mining and Oil & Gas Machinery Manufacturers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 700 mining and oil and gas machinery manufacturers in the US produce machinery used in the exploration and extraction of minerals and petroleum resources. Machinery may be highly specialized to perform a specific task or made more versatile by equipping them with various attachments. Many firms in this industry have an international presence or compete with foreign firms in their domestic market. Machinery used for offshore drilling, surface mining; and material conveying is not included in this industry profile.
Dependence on Oil & Gas Production
The number of new oil and gas wells drilled and their productivity and longevity drive demand for machinery, sales of parts and attachments, and service revenue.
Fewer Coal Mines, Less Output
Competition from cleaner-burning fuels, concern over environmental impacts, and health risks related to coal mining are taking a toll on the coal industry.
Industry size & Structure
A typical manufacturer of mining and oil and gas machinery operates out of a single location, employs 84 workers, and generates about $21 million annually.
- The mining and oil and gas field machinery manufacturing industry consists of about 700 companies that employ about 59,000 workers and generate $15 billion annually.
- The heavy machinery segment is dominated by large, technologically advanced firms with broad market reach. Not only do these large firms produce a wide range of products, but most have international operations and extensive dealer networks.
- The mining machinery segment of the industry is concentrated with the 20 largest firms representing 75% of its revenue. The oil and gas machinery segment is slightly less concentrated with the 20 largest firms representing 66% of its revenue.
- The aftermarket segment, which includes replacement parts, attachments, service, and refurbishment, is fragmented with many smaller firms competing based on price, breadth of products, and proximity to customers. Mining and oil and gas machinery manufacturers may partner with aftermarket suppliers to obtain parts and attachments and broaden their equipment options.
- Large companies with US manufacturing operations include Caterpillar, Komatsu Mining (P&H, Joy, Montabert), Epiroc, Boart Longyear, and TMG Manufacturing.
- The industry competes domestically and internationally with foreign-based manufacturers including Terex, Sandvik, XCMG, Sany, and Metso Minerals.
Industry Forecast
Mining and Oil & Gas Machinery Manufacturers Industry Growth
Recent Developments
Feb 23, 2025 - Prices Keep Climbing
- Producer prices for mining and oil and gas machinery manufacturers rose 2.3% in December compared to a year ago after rising 6.1% in the previous December-versus-December annual comparison, according to the latest US Bureau of Labor Statistics data. Industry producer prices have risen relatively steeply and steadily since mid-2021, driven by higher energy, material, and labor costs. Employment by the industry fell 5% year over year in December, while average wages at agricultural, construction, and mining machinery companies rose 5.8% over the same period to $31.40 per hour, BLS data show. Employment by mining and oil and gas machinery manufacturers has tumbled nearly 45% over the past decade.
- The highly-concentrated US coal mining industry is undergoing further consolidation as a result of the merger of two of the largest US coal mining companies. Amid a wave of industry deal making, CONSOL Energy and Arch Resources merged in January to form Core Natural Resources (CNR) with large and non-overlapping thermal and metallurgical coal operations, according to a press release. Newly-merged CNR owns 11 mines, including Pennsylvania’s Bailey, Enlow Fork, and Harvey mines and the largest underground mine complex in North America. “Through this transformational combination, we have created a global leader exceptionally well-positioned to compete and succeed in two significant, high-potential market segments – the global metallurgical and global high-rank thermal coal markets,” the company’s CEO Jimmy Brock said in a statement. Ongoing consolidation among coal producers and declining demand for coal shrinks the customer pool for makers of mining machinery and equipment and increases leverage for buyers.
- The incoming Trump administration is expected to “significantly prioritize” building more mines, processing facilities, and refineries in the US, as opposed to the Biden administration's focus on international cooperation to reduce US reliance on foreign supply chains for critical minerals, according to Gregory Wischer, founder of critical minerals consultancy Dei Gratia Minerals. Wischer also predicts that the Trump administration will continue and accelerate bipartisan policies strengthening US mineral supply chains. “In particular, I think you can expect the [Trump] administration to focus heavily on domestic onshoring of all parts of the mineral supply chain, especially mineral extraction,” Wischer told Mining Technology (MT) after the election. Trump’s approach will likely entail streamlining the permitting process and imposing tariffs to incentivize domestic mineral production, Wischer adds. Also, Trump’s more relaxed approach to environmental regulation is likely to benefit the mining and fossil fuel sectors, per MT.
- According to the National Mining Association (NMA), a broad coalition of US mineral and energy producers supports the Energy Permitting Reform Act of 2024. The bipartisan bill, which was advanced in the Senate Energy and Natural Resources Committee in July, would accelerate the permitting process for critical energy and mineral projects of all types in the US by reforming leasing, permitting, and the judicial review process for certain energy and minerals projects. NMA President and CEO Rich Nolan cited a report released by S&P Global that found it takes an average of 29 years to bring a mine online in the US, an untenable situation if the US is to secure the critical minerals needed to secure supply chains and compete with China. Coal leases on federal land, securing rights-of-way across Indian land, and hardrock mining mill sites are covered in the bill.
Get A Demo
Vertical IQ’s Industry Intelligence Platform
See for yourself why over 60,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.
Build valuable, lasting relationships by having smarter conversations -
check out Vertical IQ today.