MARKET FORECAST: MINING EQUIPMENT OE LINK™ PRODUC TION – FORECAST DATABASE
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Power Systems Research forecasts a 13% rebound for the North American mining equipment market in 2021. ©ALEX – STOCK.ADOBE.COM
BETTER TIMES AHEAD for North American Mining Equipment Market Mining equipment production is forecast to rebound in 2021, and grow 3.8% through 2026. contributed by Jim Downey, Vice President-Global Data Products, Power Systems Research
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he mining equipment market in North America is showing signs of recovery based on the number of shipments being up in the fourth quarter of 2020 compared to previous quarters in 2020. COVID-19 dramatically affected the mining equipment market, driving down commodity prices, requiring labor force restrictions and disrupting supply chains. Although 2020 was a setback in terms of production of mining equipment, the short-term outlook is quite favorable based upon Power Systems Research’s (PSR) global economic forecasts and vaccine rollouts. Better times for mining appear to be ahead in 2021 and beyond.
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Looking at mining equipment production, PSR sees a rebound for the overall industry from 2020 of about 13% for 2021 and compound annual growth rate (CAGR) of 3.8% for the years 2021-2026. Production information for mining equipment comes from OE Link™, the PSR proprietary database of OEM production and forecast data. OE Link™ covers internal combusion engines and electric- and hybrid-drive systems for vehicles, as well as stationary and mobile applications. PSR has been tracking these production trends since 1976.
The Caterpillar example Caterpillar is a good example of what is happening in the mining equipment
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segment and the resulting reduced volumes from 2019 to 2020. The company’s Resource Industries business is focused on machinery used in heavy construction and mining, for both surface and underground operations. Caterpillar’s equipment is used to extract and haul copper, iron ore, coal, oil sands, aggregates, gold and other minerals and ores. The COVID-19 pandemic caused a global recession and it is uncertain when a sustained economic recovery may occur. The COVID-19 pandemic has also significantly increased economic and demand uncertainty, and Caterpillar notes that COVID-19 has led to a general decrease in demand for its products and services and caused
