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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London EC4Y 0BS
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Tel: +44 (0) 20 7936 6400
Fax: +44 (0) 20 7336 6813
Website: www.icd-research.com
www.icd-research.com
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
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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
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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
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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
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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
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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