Global Mining Survey 2012–2013: Market Trends, Buyer Spend and Procurement Strategies in the Global Mining Industry by ICDResearch

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									                                          Mining
                                          Panel Report




Global Mining Survey 2012–2013:
Market Trends, Buyer Spend and Procurement
Strategies in the Global Mining Industry

Reference code: MN1607PR

Published: March 2012


ICD Research
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7 Carmelite Street
London EC4Y 0BS
United Kingdom
Tel: +44 (0) 20 7936 6400
Fax: +44 (0) 20 7336 6813
Website: www.icd-research.com




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 TABLE OF CONTENTS



TABLE OF CONTENTS

1      Introduction ........................................................................................................................... 9
    1.1 What is this report about? ................................................................................................................ 9
    1.2 Definitions ........................................................................................................................................ 9
    1.3 Methodology ...................................................................................................................................10
    1.4 Profile of Global Mining Industry Survey Respondents ....................................................................12
        1.4.1     Profile of buyer respondents ..................................................................................................................... 12
        1.4.2     Profile of supplier respondents ................................................................................................................. 13
2      Executive Summary ............................................................................................................ 15
3      Global Mining Industry Dynamics ...................................................................................... 17
    3.1 Revenue Growth Projections in the Global Mining Industry .............................................................18
        3.1.1     Revenue growth projections by company type ......................................................................................... 20
        3.1.2     Revenue growth projections by region ..................................................................................................... 21
        3.1.3     Revenue growth projections by turnover .................................................................................................. 23
        3.1.4     Revenue growth projections by senior level respondents ........................................................................ 24
        3.1.5     Company revenue growth optimism: cross industry comparisons ........................................................... 25
    3.2 Future Developments in Business Structure in the Global Mining Industry ......................................26
        3.2.1     Future developments by buyers ............................................................................................................... 26
        3.2.2     Future developments by suppliers ............................................................................................................ 28
        3.2.3     Future developments by region ................................................................................................................ 29
        3.2.4     Future developments by turnover ............................................................................................................. 30
        3.2.5     Future developments by senior level respondents ................................................................................... 32
    3.3 Merger and Acquisition Activity Projections in the Global Mining Industry .......................................33
        3.3.1     Merger and acquisition activity projections by buyers .............................................................................. 33
        3.3.2     Merger and acquisition activity projections by suppliers .......................................................................... 35
        3.3.3     Merger and Acquisition activity projections by region .............................................................................. 37
        3.3.4     Merger and acquisition activity projections by company turnover ............................................................ 38
    3.4 Capital Expenditure Projections: Global Mining Industry .................................................................39
        3.4.1     Projection of capital expenditure by buyers .............................................................................................. 39
        3.4.2     Projection of capital expenditure by suppliers .......................................................................................... 40
        3.4.3     Projection of capital expenditure by region............................................................................................... 42
        3.4.4     Projection of capital expenditure by company turnover ............................................................................ 43
    3.5 Planned Change in Staff Recruitment in the Global Mining Industry ................................................44
        3.5.1     Planned change in staff recruitment by buyers ........................................................................................ 44
        3.5.2     Planned change in staff recruitment by suppliers ..................................................................................... 46
        3.5.3     Planned change in staff recruitment by region ......................................................................................... 47



Global Mining Survey 2012–2013:Market Trends, Buyer Spend and Procurement Strategies
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© ICD Research. This product is licensed and is not to be photocopied                                                                          Published: Mar 2012
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       3.5.4    Planned change in staff recruitment by company turnover ...................................................................... 48
4      Global Mining Industry Market Growth Outlook ............................................................... 49
    4.1 Global Mining Industry: Demand in Emerging Markets ....................................................................50
       4.1.1    Demand in emerging markets by buyers .................................................................................................. 51
       4.1.2    Demand in emerging markets by suppliers .............................................................................................. 53
       4.1.3    Demand in emerging markets by region ................................................................................................... 56
       4.1.4    Demand in emerging markets by company turnover ................................................................................ 57
    4.2 Global Mining Industry: Growth Projections in Developed Countries ...............................................58
       4.2.1    Growth projections in developed countries by buyers .............................................................................. 58
       4.2.2    Growth projections in developed countries by suppliers .......................................................................... 61
       4.2.3    Growth projections in developed countries by region ............................................................................... 63
       4.2.4    Growth projections in developed countries by company turnover ............................................................ 64
5      Threats and Opportunities for the Global Mining Industry .............................................. 65
    5.1 Global Mining Industry: Leading Business Concerns for 2012–2013 ...............................................66
       5.1.1    Leading business concerns for 2012–2013 by company type ................................................................. 68
       5.1.2    Leading business concerns for 2012–2013 by region .............................................................................. 70
       5.1.3    Leading business concerns for 2012–2013 by company turnover ........................................................... 71
    5.2 Global Mining Industry: Key Supplier Actions to Maintain and Win Buyer Business ........................72
       5.2.1    Actions to maintain and secure buyer business by buyers ...................................................................... 72
       5.2.2    Actions to maintain and secure buyer business by region ....................................................................... 75
       5.2.3    Actions to maintain and secure buyer business by turnover .................................................................... 76
       5.2.4    Actions to maintain and secure buyer business by purchasing decision authority .................................. 78
6      Global Mining Industry Buyer Spend Activity................................................................... 79
    6.1 Annual Procurement Budgets in the Global Mining Industry ............................................................80
       6.1.1    Annual procurement budgets by company type ....................................................................................... 81
       6.1.2    Revenue growth vs. annual procurement budgets ................................................................................... 82
       6.1.3    Annual procurement budgets by region .................................................................................................... 83
       6.1.4    Annual procurement budgets by company turnover ................................................................................. 84
       6.1.5    Annual procurement budgets by senior level respondents ...................................................................... 85
    6.2 Global Mining Industry: Planned Change in Procurement Expenditure............................................86
       6.2.1    Planned change in procurement expenditure by company type .............................................................. 86
       6.2.2    Planned change in procurement expenditure vs. revenue growth optimism ............................................ 88
       6.2.3    Planned change in procurement expenditure vs. cost containment ......................................................... 88
       6.2.4    Planned change in procurement expenditure by region ........................................................................... 89
       6.2.5    Planned change in procurement expenditure by company turnover ........................................................ 90
       6.2.6    Planned change in procurement expenditure across industries .............................................................. 91
    6.3 Planned Change in Procurement Expenditure by Product and Service Category ............................92
       6.3.1    Planned change in procurement expenditure by product and service category by region ...................... 97


Global Mining Survey 2012–2013:Market Trends, Buyer Spend and Procurement Strategies
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© ICD Research. This product is licensed and is not to be photocopied                                                                Published: Mar 2012
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       6.3.2      Planned change in procurement expenditure by product and service category by company turnover.... 98
    6.4 Global Mining Industry: Variations in Regional Supplier Prices........................................................99
       6.4.1      Variations in regional supplier prices by company type ........................................................................... 99
       6.4.2      Variations in regional supplier prices by region ...................................................................................... 101
       6.4.3      Variations in regional supplier prices by company turnover ................................................................... 102
7      Global Mining Industry Procurement Behaviors and Strategies................................... 103
    7.1 Critical Success Factors for Supplier Selection in the Global Mining Industry ................................104
       7.1.1      Critical success factors by company type ............................................................................................... 104
    7.2 Future Procurement Objectives in the Global Mining Industry .......................................................108
       7.2.1      Future procurement objectives by company type ................................................................................... 108
       7.2.2      Future procurement objectives by region ............................................................................................... 110
       7.2.3      Future procurement objectives by company turnover ............................................................................ 111
    7.3 E-procurement in the Global Mining Industry.................................................................................112
       7.3.1      E-procurement by company type ............................................................................................................ 112
       7.3.2      Procurement budget increase vs. e-procurement .................................................................................. 113
       7.3.3      E-procurement by region ........................................................................................................................ 114
       7.3.4      E-procurement by company turnover ..................................................................................................... 116
8      Appendix ............................................................................................................................ 117
    8.1 Survey Results – Closed Questions ..............................................................................................117
    8.2 Methodology .................................................................................................................................124
    8.3 Contact us .....................................................................................................................................124
    8.4 About ICD Research .....................................................................................................................124
    8.5 Disclaimer .....................................................................................................................................125




Global Mining Survey 2012–2013:Market Trends, Buyer Spend and Procurement Strategies
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© ICD Research. This product is licensed and is not to be photocopied                                                                         Published: Mar 2012
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LIST OF FIGURES

Figure 1: Revenue Growth Optimism in the Global Mining Industry(%), 2010–2012 ........................................................................................... 19
Figure 2: Revenue Growth Optimism in the Global Mining Industry by Company Type (%), 2010–2012 ............................................................. 21
Figure 3: Revenue Growth Optimism in the Global Mining Industry by Region(%), 2010–2012........................................................................... 22
Figure 4: Revenue Growth Optimism in the Global Mining Industry by Turnover(%), 2012 ................................................................................. 23
Figure 5: Revenue Growth Optimism by Senior Level Respondents: Global Mining Industry(%), 2012 ............................................................... 24
Figure 6: Company Revenue Growth Optimism: Cross Industry Comparisons (%), 2012 ................................................................................... 25
Figure 7: Key Expected Changes in Business Structure by Buyers: Global Mining Industry (%)), 2012 .............................................................. 27
Figure 8: Key Expected Changes in Business Structure by Suppliers: Global Mining Industry (%), 2012 ............................................................ 29
Figure 9: Key Expected Changes in Business Structure by Region: Global Mining Industry (%), 2012 ............................................................... 30
Figure 10: Key Expected Changes in Business Structure by Turnover: Global Mining Industry (%), 2012 .......................................................... 31
Figure 11: Key Expected Changes In Business Structure by Senior Level Respondents: Global Mining Industry (%), 2012 ............................... 32
Figure 12: Merger and Acquisition Activity by Buyers: Global Mining Industry (%), 2010–2012........................................................................... 34
Figure 13: Merger and Acquisition Activity by Suppliers: Global Mining Industry (%), 2010–2012 ....................................................................... 36
Figure 14: Merger and Acquisition Activity by Region: Global Mining Industry (%), 2012 .................................................................................... 37
Figure 15: Merger and Acquisition Activity by Turnover: Global Mining Industry (%), 2012 ................................................................................. 38
Figure 16: Global Mining Industry: Projection of Capital Expenditure by Buyers (%), 2012 ................................................................................. 40
Figure 17: Global Mining Industry: Projection of Capital Expenditure by Suppliers (%), 2012.............................................................................. 41
Figure 18: Global Mining Industry: Projection of Capital Expenditure by Region (%), 2012 ................................................................................. 42
Figure 19: Global Mining Industry: Projection of Capital Expenditure by Turnover (%), 2012 .............................................................................. 43
Figure 20: Global Mining Industry: Planned Change in Staff Recruitment by Buyers (%), 2012 .......................................................................... 45
Figure 21: Global Mining Industry: Planned Change in Staff Recruitment by Suppliers (%), 2012 ....................................................................... 46
Figure 22: Global Mining Industry: Planned Change in Staff Recruitment by Region (%), 2012 .......................................................................... 47
Figure 23: Global Mining Industry: Planned Change in Staff Recruitment by Turnover (%), 2012 ....................................................................... 48
Figure 24: Global Mining Industry: Top Ten Growth Regions , 2012 ................................................................................................................... 50
Figure 25: Global Mining Industry: Top Five Emerging Markets , 2012 ............................................................................................................... 50
Figure 26: Global Mining Industry: Demand in Emerging Markets by Buyers (%), 2012 ...................................................................................... 53
Figure 27: Global Mining Industry: Demand in Emerging Markets by Suppliers (%), 2012 .................................................................................. 55
Figure 28: Global Mining Industry: Demand in Emerging Markets by Region (%), 2012 ...................................................................................... 56
Figure 29: Global Mining Industry: Demand in Emerging Markets by Company Turnover (%), 2012 ................................................................... 57
Figure 30: Global Mining Industry: Top Five Developed Regions by Growth, 2012 ............................................................................................. 58
Figure 31: Global Mining Industry: Growth Projections in Developed Countries by Buyers (%), 2012 ................................................................. 60
Figure 32: Global Mining Industry: Growth Projections in Developed Countries by Suppliers (%), 2012 .............................................................. 62
Figure 33: Global Mining Industry: Growth Projections in Developed Countries by Region (%), 2012 ................................................................. 63
Figure 34: Global Mining Industry: Growth Projections in Developed Countries by Turnover (%), 2012 .............................................................. 64
Figure 35: Global Mining Industry: Leading Business Concerns (%), 2012–2013 ............................................................................................... 67
Figure 36: Global Mining Industry: Top Five Leading Business Concerns, 2012–2013 ....................................................................................... 68
Figure 37: Global Mining Industry: Leading Business Concerns by Company Type (%), 2012–2013 .................................................................. 69
Figure 38: Global Mining Industry: Securing Buyer Business: Buyer Responses (%), 2012 ................................................................................ 73
Figure 39: Global Mining Industry: Securing Buyer Business: Buyer vs. Supplier Responses (%), 2012 ............................................................. 74
Figure 40: Global Mining Industry: Securing Buyer Business by Turnover (%), 2012 .......................................................................................... 77
Figure 41: Global Mining Industry: Securing Buyer Business by Purchasing Authority (%), 2012 ........................................................................ 78
Figure 42: Global Mining Industry: Annual Procurement Budgets by Buyers in US$ (%), 2010–2012 ................................................................. 80
Figure 43: Global Mining Industry: Annual Procurement Budgets in US$ by Company Type (%), 2012 .............................................................. 81
Figure 44: Global Mining Industry: Annual Procurement Budgets in US$ by Region (%), 2012 ........................................................................... 83
Figure 45: Global Mining Industry: Annual Procurement Budgets in US$ by Turnover (%), 2012 ........................................................................ 84
Figure 46: Global Mining Industry: Annual Procurement Budgets by Senior Respondents (%), 2012 ................................................................... 85
Figure 47: Global Mining Industry: Planned Change in Total Procurement Expenditure of Buyers (%), 2010–2012 ............................................ 87
Figure 48: Global Mining Industry: Planned Change in Procurement Expenditure by Region (%), 2012.............................................................. 90
Figure 49: Global Mining Industry: Change in Spend on Products and Services by Buyers (%), 2012 ................................................................ 95
Figure 50: Global Mining Industry: Top Five Product and Service Categories by Buyers, 2012........................................................................... 96
Figure 51: Change in Expenditure on Products and Services by Region (%), 2012 ............................................................................................ 97
Figure 52: Change in Expenditure on Products and Services by Turnover(%), 2012 .......................................................................................... 98
Figure 53: Global Mining Industry: Variations in Regional Supplier Prices (%), 2012 .........................................................................................100
Figure 54: Global Mining Industry: Variations in Regional Supplier Prices by Region (%), 2012 ........................................................................101
Figure 55: Global Mining Industry: Variations in Regional Supplier Prices by Turnover (%), 2012 .....................................................................102
Figure 56: Critical Success Factors for Supplier Selection: Buyers vs. Suppliers (Index Score), 2012 ...............................................................106
Figure 57: Critical Success Factors for Supplier Selection: Buyers vs. Suppliers (Index Score), 2012 ...............................................................107


Global Mining Survey 2012–2013:Market Trends, Buyer Spend and Procurement Strategies
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© ICD Research. This product is licensed and is not to be photocopied                                                                                          Published: Mar 2012
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Figure 58: Global Mining Industry: Future Procurement Objectives by Company Type (%), 2012 ......................................................................109
Figure 59: Global Mining Industry: E-Procurement, Level of Implementation (%), 2012 .....................................................................................113
Figure 60: Global Mining Industry: E-Procurement by Region (%), 2012............................................................................................................115
Figure 61: Global Mining Industry: E-Procurement by Turnover (%), 2012 .........................................................................................................116




Global Mining Survey 2012–2013:Market Trends, Buyer Spend and Procurement Strategies
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© ICD Research. This product is licensed and is not to be photocopied                                                                                      Published: Mar 2012
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LIST OF TABLES

Table 1: Total Global Mining Industry Survey Respondents by Company Type, 2012 ......................................................................................... 12
Table 2: Buyer Respondents by Job Role: Global Mining Industry (%), 2012 ...................................................................................................... 12
Table 3: Buyer Respondents by Global Company Turnover: Global Mining Industry (%), 2012 .......................................................................... 13
Table 4: Buyer Respondents by Region: Global Mining Industry (%), 2012 ........................................................................................................ 13
Table 5: Supplier Respondents by Job Role: Global Mining Industry (%), 2012 .................................................................................................. 13
Table 6: Supplier Respondents by Global Company Turnover: Mining Industry (%), 2012 .................................................................................. 14
Table 7: Supplier Respondents by Region: Global Mining Industry (%), 2012 ..................................................................................................... 14
Table 8: Revenue Growth Optimism in the Global Mining Industry(%), 2010–2012............................................................................................. 18
Table 9: Revenue Growth Optimism in the Global Mining Industry by Buyers (%), 2010–2012 ........................................................................... 20
Table 10: Revenue Growth Optimism in the Global Mining Industry by Suppliers (%), 2010–2012 ..................................................................... 20
Table 11: Revenue Growth Optimism in the Global Mining Industry by Region (%), 2010–2012 ......................................................................... 22
Table 12: Revenue Growth Optimism in the Global Mining Industry by Turnover (%), 2012 ................................................................................ 23
Table 13: Revenue Growth Optimism by Senior Level Respondents: Global Mining Industry(%), 2012 .............................................................. 24
Table 14: Key Expected Changes in Business Structure by Buyers: Global Mining Industry (%), 2012 ............................................................... 27
Table 15: Key Expected Changes in Business Structure by Suppliers: Global Mining Industry (%), 2012 ........................................................... 28
Table 16: Merger and Acquisition Activity by Buyers: Global Mining Industry (%), 2010–2012 ............................................................................ 34
Table 17: Merger and Acquisition Activity by Suppliers: Global Mining 
								
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