Stronger Commodities Market Causes Equipment Shortage
A global commodity demand increase has led to a low availability of mining equipment and increased demands for labour. in the 18 months since December 2016, The Australian mining fleet index rose by 7.5 percent in value, bordering levels seen five years ago.
The rising index has created a very strong demand for yellow goods including earth-moving, construction and quarrying equipment. A healthy Chinese economy and a demand for our key commodities like iron ore and coal is the reason for demand but creates headaches for procurement businesses that manage labour, equipment, and spare part supplies.
With lead times up to two years on larger equipment, productivity could see a big downturn in coming years if maintenance schedules aren’t handled with extreme attention. Technological advances for better productivity and safer worksites like the electrification of mining vehicles and autonomous drilling is becoming more common, however, with long waits on equipment and parts, it leaves the power in the hands of hire fleet owners.