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 705 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
Source: Vertical IQ and Inforum

Recent Developments

Feb 23, 2024 - Producer Prices End 2023 at Record High
  • Producer prices for mining and oil and gas machinery manufacturers rose 4.5% in December compared to a year ago, ending the year at a record high, according to the US Bureau of Labor Statistics. Last year’s rise in industry producer prices extended a two-and-a-half-year climb over which producer prices rose 21%, BLS data show. Rising sales for machinery companies coupled with strong demand from the thriving energy sector are fueling sales of mining and oil and gas machinery. Employment by mining and oil and gas machinery manufacturers grew 6.2% last year – though it remains far below that of nine years ago – while average wages at agricultural, construction, and mining machinery firms ended 2023 up nearly 10% compared to a year ago and just shy of their record high of $30.22 in November, per the BLS.
  • 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 need to be replaced by 2029. Failure to train more mining engineers is creating a skills deficit at the mines needed to produce critically important minerals and metals.
  • More than 190 countries at the United Nations climate conference – known as COP28 – in December signed on to a deal calling for “transitioning away from fossil fuels in energy systems, in a just, orderly and equitable manner,” The Wall Street Journal reports. The agreement states the shift to clean energy for the global economy should accelerate this decade with the aim of net-zero greenhouse gas emissions by 2050, according to WSJ. The deal marks the first time a U.N. climate agreement has called for governments to cut back on all fossil fuels and demonstrates a new determination by governments worldwide to cut fossil fuel consumption. Its supporters say it should accelerate the flow of private investment into clean energies and away from fossil-fuel production. The deal does not set a strict timeline for transitioning and endorses carbon capture and storage technology, giving coal, oil and gas producers some leeway to comply.
  • The US mining industry is short on workers and facing an uphill battle for talent, The Wall Street Journal reports. Employment in the mining industry (including all jobs across coal, metal ore, and nonmetallic mineral mining) has fallen from 285,200 workers in 1991 to 187,100 at present, according to the US Bureau of Labor Statistics. Workers are discouraged by the industry’s image of dirty and potentially dangerous work and the prospect of having to relocate to remote job sites, according to WSJ. A global survey by McKinsey found that 70% of its 15- to 30-year-old respondents said that they definitely wouldn’t or probably wouldn’t work in mining. With many established mining operations contending with decades of underinvestment, companies say the industry’s labor shortage could further threaten their ability to increase output, resulting in higher prices for metals and minerals required for the nation’s energy transition.
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