The United States and Canada are seeing encouraging trends continue in the mining industry and the outlook for the remainder of 2019 and into 2020 appear to be on the same track.
Mining companies of all sizes throughout North America reported strong earningsand consistently increasing profit margins and cash flow for FY2018. Bouncing back from rough times prior to 2016, the mining industry continues to build on its recovery that has been fueled by robust macroeconomic fundamentals, large reserves and deregulation under President Donald Trump.
However, the driver for success is different from the past. There are still significant profits in the copper, nickel, lead, tin and gold markets, and things are looking better for materials such as iron and coal. The Trump Administration promised to save coal during the 2016 campaign, and for the most part he has succeeded, but as the country seeks alternative sources of energy time will tell how volatile the coal markets will become.
Mining equipment market growing at impressive rates.
The positive forecast for the mining industry is also impacting the Mining Equipment Market in a positive way as well. In 2017, the global mining equipment market size was valued at USD 120.82 billion, but with an anticipated CAGR of 11.7%, analysts are predicting the global mining equipment market will reach USD 284.93 billion by 2025 per Grand View Research.
With the demand for mined materials increasing at such rapid rates, mining companies both large and small are scrambling to improve and increase their machinery to meet the upcoming demand. Many mining companies are financing mining equipment, both new and used, and retrofitting their current fleets to increase drilling, extraction and exploration activities over the next few years.
Risk is still present and expected.
Even though the mining industry in North American looks positive, mining companies will continue to encounter tension over water usage from local communities, political uncertainty that can impact their operations across the globe and the general public’s attitude toward clean energy and sustainable business practices that will continue to impact the coal industry.
Overall, the outlook for mining in The United States and Canada is positive.
Yes, there are risks that the mining industry will face over the next few years, but the overall forecast for the industry looks stronger now than it has in a long time. Improving on a recovery that started back in 2016, the mining industry and the mining equipment market will continue to see massive growth for the remainder of 2019 and beyond.
*This article was originally posted on our Quora Blog on June 1, 2019