Sinking Commodity Prices Impact Production of Mining Equipment

If you've been paying attention to our posts about Australia, then you're aware of how the mining industry has been suffering there; what you may not realize, however, is that falling commodity prices have not been limited to the Australian continent. As the value of commodities has gone down around the globe, the international mining equipment industry has been negatively impacted as well.

Early in March Milwaukee-based equipment producer Joy Global announced that its net fiscal worth had fallen by 52% from the previous year, citing that falling oil prices had led to customers spending less on mining equipment.

They're not the only ones feeling the pinch. NPR reports lower prices on commodities such as copper and iron have led to weaker demand for mining equipment. It doesn't seem to be a temporary dip, either, and Joy Global isn't the only equipment producer facing hard choices:

Caterpillar, which in 2010 bought longtime mining equipment maker Bucyrus in South Milwaukee, began to lay off workers in Wisconsin and elsewhere. Outside the huge South Milwaukee plant, there are fewer cars now in the Caterpillar company parking lot as hundreds of workers, basically half the factory, have lost their jobs (NPR).

Speaking as suppliers of big tires for big mining machines, we admit that stories like these are not exactly our favorites. We realize, however, that markets are always fluctuating, and that the bottom of the trough just means that the trend is about to reverse. We look forward to giving more positive reports in the weeks and months to come.

In the meantime, remember that we carry a full supply of big tires for all your equipment needs. Please feel free to contact us for the best deals.

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