Latin America offers the best prospects for maintenance and aftermarket service providers

By Timetric / October 14, 2015 / www.mining.com / Article Link

A recent survey by Timetric's Mining Intelligence Center (MIC) has shown more mines throughout Latin America prefer to outsource their after-sales equipment support work than any other mining region globally.

Timetric's MIC recently surveyed over 100 key decision-makers at operating mines throughout Latin America and asked respondents their current practices and preferences towards maintenance and aftermarket parts and services. Respondents were asked to identify their preferences for the type of after-sales support from their manufacturer or dealer. They could choose between working with the supplier, working alone, or outsourcing all support to the supplier (work with me', do it myself', and do it for me').

Whilst more than half of the respondents (53%) outlined their preference for a work with me' structure, there was a sizeable share (35%) of respondents that preferred to outsource all equipment support work with the do it for me' structure. A small share of 12% prefers to take care of all work in-house (do it myself' structure) and provide their own support.

These results support the strong customer loyalty to original equipment manufacturers (OEMs) for parts requirements throughout Latin America. It also identifies significant opportunities for further business for these manufacturers and dealers through the provision of after-sales equipment support. The share of respondents who prefer to outsource support work is the largest globally. North America has a 12% share, with 24% in Europe and the former Soviet Union, 19% in Africa, 24% for Asia and only 11% in Australia.

"Mining companies can provide better opportunities to their suppliers by choosing to outsource their after-sales equipment support work. There are greater opportunities for manufacturers who can provide comprehensive levels of support in Latin America than in any other mining region. OEMs can capitalise on these opportunities as mining companies in the region are already heavily invested in their aftermarket parts," comments Nez Guevara, Senior Mining Analyst at Timetric's MIC.

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