Maintenance and Aftermarket Preferences in African Mining 2014
In July to September 2014, Timetric surveyed 108 mine managers, maintenance managers, procurement managers and other key decision-makers in over 100 operating African mines. The survey primarily assessed the maintenance and equipment support preferences provided by original equipment manufacturers and independent third party companies.Areas of analysis include:
- Customer preferences for choosing maintenance and aftermarket support structure. These include opting for either original equipment manufacturers (OEMs) or independent third party providers.
- Analysis of respondents who use OEMs or third party providers in respect to three equipment parts categories: strategic parts, non-strategic parts and for all processing related equipment. These responses are analysed between regions, commodity, company size and mine type.
- After-sales equipment support is divided between four types available: work with me, do it for me, do it myself and other. With each category showing a varied approach by equipment manufacturers in the support they provide to end users of their products. These responses are also divided by commodity, mine type, company size and by region.
- Respondents were asked to rate their equipment providers over a range of different areas. Each category was given a rating of importance by the respondents. Then the categories were also rated in terms of the provider’s performance. The report looks at two important areas, service and repair capabilities, and maintenance and service costs. With respondent ratings of importance directly compared with their ratings for provider performance.
- Three types of service contracts we then outlined. Maintenance only, operation and maintenance, and life cycle management. Preferences for the support structure offered by their equipment provider are divided into mine type, company size, and region.
Overall trends in the data revealed:
- African mines use OEMs for aftermarket service and maintenance over 75% of the time. OEM use is much higher for strategic parts with 95% in comparison to non-strategic parts with 80%. Processing equipment uses OEMs 75% of the time.
- More than 50% of surface mining operations use independent third parties in some way. In comparison, less than 30% of underground mines use third party companies in their mining operations.
- The most preferred service contracts are operation and maintenance with 38% of the responses. Life cycle management comes in next with 30%.
This report provides detailed analysis of maintenance and aftermarket preferences in the African mining sector. The analysis is based upon Timetric’s survey of 108 mine managers, procurement managers, and other key decision-makers, and focuses in particular on the services provided by original equipment manufacturers and independent third parties.Reasons To Buy
- Understanding mining companies' use of original equipment manufacturers (OEMs) for equipment parts and for processing equipment needs. Also how these preferences vary by commodity, company size and region.
- Gain knowledge of mining company preferences with their after-sales support structure, and identify services required based on mine type, company size and commodity.
- Understanding the importance mining companies place on service and maintenance costs and capabilities. Then comparing the results with the actual rated performance of these equipment manufacturers.
- Identify the service contract preferences of mines in Africa, then see the differences when compared across mine type, region and company size.
- Original equipment manufacturers (OEMs) are used in some way over 75% of the time in the African mining industry.
- When comparing mine types and OEM use, less than 30% of underground mining respondents would use third-party providers for parts and equipment. There is a stronger focus on original parts. In comparison, more than half (50%) of surface mining operations utilize third party providers in some form.
- Instead of an involving after sales contract as life cycle management, majority of respondents have opted for the operation and maintenance support structure. Lifecycle management comes in second preference.
- EXECUTIVE SUMMARY
- AFTERMARKET PREFERENCES
- Types of Company Used for Parts
- Regional Comparison: Companies used for Parts in South Africa versus the Rest of Africa
- AFTER SALES EQUIPMENT SUPPORT PREFERENCES
- Importance of After-Sales Support When Choosing an OEM
- Regional Comparison: After Sales Equipment Support in South Africa versus the Rest of Africa
- SERVICE CONTRACT PREFERENCES
- Regional Comparison: Preferences between Service Contracts in South Africa versus the Rest of Africa
- APPENDIX I
- Table Types of Company Used for Maintenance and Aftermarket for Different Parts (%), 2014
- Table Use of Independent Third-parties and Mix of OEMs and Third-parties by Mine Type (%), 2014
- Table Use of Independent Third-parties by Company Size (%), 2014
- Table After-Sales Equipment Support Preferences (%), 2014
- Table Preferences for After-Sales Support by Mine Type and Company Size (%), 2014
- Table Preferences for After-Sales Support by Commodity (%), 2014
- Table Average Rating of Importance and Performance of OEMs for Service and Repair Capabilities, 2014
- Table Average Rating of Importance and Performance of OEMs for Maintenance & Service Costs, 2014
- Table Preferences for Service Contracts (%), 2014
- Table Preference for Service Contracts by Mine Type (%), 2014
- Table Preference for Service Contracts by Company Size (%), 2014
- Table Regional Comparison between South Africa and the Rest of Africa for the use of OEMs or Third-Parties for Strategic/Non-Strategic Parts and Processing Equipment (%), 2014
- Table South African Respondents use of OEMs for Strategic/Non-Strategic Parts and Processing Equipment by Commodity (%), 2014
- Table Use of OEMs in South Africa by Company Size (%), 2014
- Table After Sales Equipment Support Preferences in South Africa versus the Rest of Africa (%), 2014
- Table After Sales Equipment Support Preferences by Company Size in South Africa versus the Rest of Africa (%), 2014
- Table South African Respondent Preferences Between Service Contracts (%), 2014
- Table Service Contract Preferences between Surface and Underground Respondents from South Africa versus the Rest of Africa (%), 2014
- APPENDIX II
- Survey Background
- Analysis of the Survey Sample
- Equipment Sourced from Main Supplier
- APPENDIX III
- What is This Report About?
- Secondary Research
- Primary Research
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