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.
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
Industry Forecast
Mining and Oil & Gas Machinery Manufacturers Industry Growth
Recent Developments
Jun 23, 2024 - Producer Prices Hit New High
- Producer prices for mining and oil and gas machinery manufacturers rose 5.5% in April compared to a year ago after climbing 9.1% in the previous annual comparison, according to the latest US Bureau of Labor Statistics data. Industry producer prices climbed to a new high in April, shrugging off a year-over-year decline in new orders in March and compared to the prior month. Industry employment grew 1.6% in April YoY, while average wages at agricultural, construction, and mining machinery firms rose 8% over the same period to $30.12, unchanged from March and just 10 cents shy of their peak in November of last year, BLS data show.
- According to a new forecast by the International Energy Agency (IEA), a surge in oil supply amid slowing demand is expected to result in a global glut of excess oil by the decade's end. In its medium-term oil market report, the IEA predicted that so-called spare capacity – the amount of pumping capacity left unused because of adequate supply – could surge in coming years to levels only seen during the COVID-19 pandemic. Growth in demand for oil is expected to peak in 2029 as clean energy technology accelerates while oil-production capacity is set to increase to nearly 113.8 million barrels a day, driven by producers in the US and the Americas. All that spare capacity could push down prices, posing tough challenges for oil producers in the US shale patch and the OPEC+ bloc, according to the IEA report, and dampening demand for machinery used in the exploration and extraction.
- According to newly released Census Bureau figures, US capital expenditures for robotic equipment totaled $12,960 million (not statistically different than 2021) and accounted for 1.1% of total equipment expenditures in 2022. The manufacturing sector was the largest investor, accounting for more than half (56.2%) of all robotic equipment expenditures – nearly $7.3 billion that year. Amid a stubborn labor shortage, manufacturers rely increasingly on automation, including robots, for some tasks to achieve greater productivity. Makers of mining and oil and gas machinery are looking to robotics to increase their own manufacturing productivity and that of their customers. Farm machinery giant Deere acquired Bear Flag Robotics, a maker of autonomous technology for agricultural tractors, in 2021 to accelerate autonomous technology on the farm.
- The shortage of mining engineers in the US could be deadly for domestic mining and the economy, Real Clear Energy warns. Data from the Society for Mining and Metallurgy shows enrollment in mining engineering programs has fallen 45% since 2015, along with the number of US schools with mining programs – from a high of 25 in 1982 to 14 in 2023, with only six offering metallurgical mining. Just 327 degrees were awarded in 2020 in mining and mineral engineering at US schools, a 39% net drop in the number of graduates since 2016. By contrast, China today has 44 mining schools graduating more than 5,000 students annually. Moreover, over half of the domestic mining workforce -- engineers and miners --- will retire and must be replaced by 2029. Failure to train more mining engineers creates a skills deficit at the mines needed to produce critically important minerals and metals.
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