Timetric’s survey of more than 100 mine managers and decision-makers working within Canada and the US found suppliers hoping to increase their customers through the provision of “life cycle management” contracts for equipment should target the US coal sector.
Comprehensive support structures such as life cycle management seem to be most popular in the US coal industry, with 40% of coal respondents in the survey nominating this as their preferred choice.
This was much higher than other commodities. For instance, not one iron ore respondent indicated their preference for life cycle management contracts.
Timetric’s research shows different target markets prefer different types of contracts for aftermarket services.
Timetric Mining Intelligence Centre lead analyst Clifford Smee said: “Life cycle management is a growing area for mining equipment suppliers that are facing reductions in new sales due to a global slump in commodity markets.
“This is one area of their business that can be grown.”