Every OEM servicing the mining industry is feeling the pinch of the current downturn in mining investment. The boom years of 2006-2012 are now behind us and slowing Chinese demand and weak commodity prices are continuing for the foreseeable future.
Here’s some figures that reflect just how significant this slump has been.
96,000
The total number of Australian mining jobs estimated to be lost in the downturn (including future predicted job losses).
1.8 million
The number of jobs China is expecting to cut in their steel and coal industries – a telling indicator of weak demand for our iron ore and coal.
34%
The amount that mining investment has fallen in the last 12 months.
70%
The estimated amount that mining investment is expected to fall further over the next three years.
It’s not all doom and gloom though: mining production, particularly in iron ore, is preceding at record levels and Australia is on track to become the world’s biggest LNG exporter. In overall job numbers, the resources sector now employs double the number of people it did before the boom, and as a share of our GDP, resources is at a high not seen since pre-WWII.
References:
http://minister.industry.gov.au/ministers/canavan/speeches/mining-2016-resources-convention
http://business.nab.com.au/wp-content/uploads/2016/06/Evolution-of-Mining-Employment.pdf
https://businessfocus.westpacgroup.com.au/blog/2016/august/15/the-australian-economy-august-2016/
http://www.bloomberg.com/news/articles/2016-02-29/china-expects-1-8-million-coal-steel-layoffs-on-capacity-cuts
http://business.nab.com.au/wp-content/uploads/2016/06/The-Mining-Cliff-How-far-have-we-come1.pdf
