A recent Timetric survey has found that original equipment manufacturers (OEMs) need to improve their product quality, after-sales services and inventories to retain market share.
The survey polled opinion of 100 key decision-makers at operating mines in Europe and the former Soviet Union (FSU).
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The survey highlighted the cost-conscious approach of OEMs towards spending on equipment parts and after-sales service.
Respondents expressed their dissatisfaction with after-sales services and the availability of parts issues putting OEMs at risk of losing market share.
As part of the survey, the parts were segmented into strategic parts, non-strategic parts, and processing equipment parts.
The survey found that OEMs have a dominant share in the strategic parts and processing equipment segments, while third party suppliers have significant share in non-strategic parts segment.
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By GlobalDataThe results further revealed that OEMs are used by 60% of mines for strategic parts, while 66% employ them to process equipment needs.
However, 27% of mines are using third-parties solely for non-strategic parts and 39% are using a combination of OEMs and third-parties.
The key areas respondents identified by the respondents include after-sales service and availability of spare parts.
Timetric Mining Intelligence Center (MIC) senior mining analyst Nez Guevara said: "Mining companies throughout Europe and the FSU rely mostly on OEMs for strategic parts. Where non-strategic parts are concerned, companies are increasingly looking to cut costs and purchase products from independent third-parties.
"Where issues regarding OEMs’ after-sales service and the availability of parts have been identified, there is a greater potential for OEMs to lose market share to third-parties."
