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The machines and accessories used in mining are some of the most rugged in the world, and capable of withstanding tremendous abuse. The mining equipment industry is not a particularly large one when measured by total employment, but its products are critical for getting the raw materials used in every product we use.
Delicate Balance of Demand and Policies
The mining demand is predicted to increase substantially over the next few decades because of the need for rare earth metals used in semiconductors and microprocessors. Without those metals, most of our electronics technology would simply not function. Along with the increased need for rare metals will come the need for the equipment to mine it.
Another factor expected to drive the market is the increased use of coal for power in developing nations. Countries such as China, Russia and India have vast natural resources they only recently have begun to take advantage of energy production. As those nations continue to industrialize, the demand for mining equipment will experience another boost.
Related: How the Global Market is Impacting U.S. Mining Equipment Manufacturers
A look at current data, however, suggests a conflicting story. The United States portion of the global industry has been hit particularly hard by the trade war with China. Because of a focus on raw materials in the tariff schedules, that industry's growth has been severely curtailed as manufacturers in various other industries try to determine how to modify their supply chains. That in turn has affected mining, and by association, mining equipment manufacturers.
According to IndustryNet data, 8% of companies reported a sales decrease and 5% noted an employment decrease. Across the sector, total employment has taken a hit with a 2.2% loss over the past year.
Total sales faired somewhat better, with mild stagnation at around the $5.2 billion mark. There are only 331 companies in the mining manufacturing sector, so any reduction in sales has a particularly strong effect on each member company. Since 53% of the sector's distribution is international, there's a clear need for global economic policies to stabilize before there can be sustained positive growth.
Largest Mining Equipment Manufacturers
Here are the nine largest mining equipment companies as measured by number of employees, Komatsu Ltd. by far the largest with major manufacturing operations in four U.S. locations.
1. Komatsu America Corp.
Location: Peoria, Ill.
Employees on site: 700
Part of the massive Komatsu Ltd. machinery company, Komatsu America Corp. in Peoria builds heavy-duty mining equipment and off-highway trucks.
2. Komatsu Mining Corp.
Location: Milwaukee, Wis.
Employees : 650
At this location, Komatsu Mining is responsible for surface-based mining equipment. That includes tools such as rotary blasthole drills and electric shovels.
3. Komatsu Mining Corp.
Location: Longview, Tex.
Employees: 530
The Texas Komatsu unit builds wheel loaders and heavy equipment for surface and pit mines.
4. Boart Longyear
Location: West Valley City, Utah
Employees: 400
For more than 125 years, Boart Longyear has been in the mining equipment business. It specializes in drilling products and instrumentation for a variety of users, including environmental, energy and water exploration.
5. Liebherr Mining Equipment Co.
Location: Newport News, Va.
Employees: 375
Since 1970, Liebherr Mining has focused on building outsized diesel-electric surface dumper trucks. Last year, it invested $45 million into building three more facilities at Newport News.
6. McLanahan Corp.
Location: Hollidaysburg, Pa.
Employees: 300
Mineral processing takes a lot of equipment, and McLanahan is well-suited to deliver. Not only is Hollidaysburg its corporate headquarters, the site produces pit mining, quarry and aggregate handling machinery.
7. Komatsu America Corp.
Location: Duffield, Va.
Employees: 254
Mining equipment is highly specialized and has a relatively low volume, making new equipment very expensive. The rebuilt market takes advantage of that, as evidenced by Komatsu's speciality in Duffield, which rebuilds coal-mining equipment for resale.
8. Telsmith Inc.
Location: Mequon, Wis.
Employees: 249
For 113 years, Telsmith has served the mining and aggregate industry. It produces crushing and vibrating equipment, and portable plants and modular stations.
9. Caterpillar Mining
Location: South Milwaukee, Wis.
Employees on site: 240
The mining arm of the legendary Caterpillar heavy machinery company constructs mining excavation equipment such as hydraulic shovels and electric rope shovels.
For More Information
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