Makers of Mining Equipment Feeling the Pinch

There's no denying the fact that so far, 2015 hasn't proven the best one that the mining world has ever seen. As the global mining slump continues, makers of mining equipment have begun to feel the pinch.

Witness Caterpillar, Inc.'s recent announcement that they would be cutting one hundred and fifty full-time employees from their Decatur, Illinois, facility, citing the exigencies of supply and demand:

The mining industry continues to experience weak market conditions, the company said. The resource industries division, which includes Decatur-built mining trucks, reported last week profits of $85 million during the first quarter, a more than 40 percent collapse from $143 million earned in the first quarter of 2014 (Herald Review).

CAT employees aren't the only ones suffering the results of the weak global market, however. The Star Tribune reports that Caterpillar, Deere, Komatsu and Liebherr alike all expect difficulties in 2015 due to the slowdown, although they cite the softness in U.S. agriculture and a prolonged pause in oil production as other contributing factors.

But not all reports are dire. Recently, Mining Global used data from Research and Markets to predict that within the United States at least, the mining equipment market will grow at a compound annual growth rate (CAGR) of 8.27 percent between now and 2019. While the global market as a whole may be suffering, the surge in U.S. mining will eventually overcome the temporary setbacks for producers of mining equipment.

Remember that we stock a full array of big OTR tires for all of your mining equipment needs. Feel free to contact us for the best deals.

The post Makers of Mining Equipment Feeling the Pinch appeared first on BuyBigTires.com.