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
Source: Vertical IQ and Inforum

Recent Developments

Apr 23, 2024 - Rising Producer Prices
  • Producer prices for mining and oil and gas field machinery manufacturers rose 5% in March compared to a year ago after rising nearly 9% in the previous annual comparison, according to the latest US Census Bureau data, which shows the industry’s producer prices at an all-time high. Industry employment grew 4.5% in January year over year but remains well below pre-pandemic levels. Average industry wages at agricultural, construction, and mining machinery firms increased 7.2% over the same period to $28.77 per hour, BLS data show.
  • 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.
  • 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.
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