Metals and Mining Industry Overview
The rise in infrastructure development and automotive production are expected to drive the growth of the global metals and mining industry. In addition, increasing demand for base metals in the electrical and electronics sector is projected to remain a key growth driver. On the other side, market volatility, resource scarcity, talent shortage, and environmental mandates are increasing challenges for companies operating in the metals and mining industry. Owing to such challenges, companies in the metals and mining industry are in the need to re-think the way they operate. Also, metals and mining companies must seize the profitable opportunities offered by digital technologies to raise productivity and cut costs.
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Business Challenge
The client is a metals and mining company based out of Germany. The company provided base metals to construction, electronics, and electrical companies throughout Germany.
Our client, a well-known metals and mining company, chose to expand its business operations to the United States. Although the US was one of the most profitable markets for mining companies, rising market volatility, resource scarcity, skill shortages, and complexity of the US legislative environment posed severe challenges for the client. Before investing a huge sum into their US expansion project, they wanted to review potential barriers to market entry, assess profitable opportunities in the market, and identify competitors’ offerings. They chose to partner with Infiniti Research to leverage their expertise in offering market intelligence solution.
Top challenges faced by the client were:
Metals and mining company challenge #1: Market volatility and weak global demand
Although the surge in demand for metals and minerals are encouraging mining companies to ramp up production volumes, sudden drop in prices are resulting in steep decline in profits. The client, therefore, wanted to thoroughly analyze the US metals and mining market conditions and consistently predict commodity demand or price fluctuations.
Metals and mining company challenge #2: Resource scarcity and quality
As resources are becoming scarce, companies in the US metals and mining industry are necessitated to push new frontiers of exploration and establish mines in off-grid locations. The client, therefore, wanted to understand how the top companies in the US metals and mining industry managed resource scarcity challenges and improved efficiency.
Metals and mining company challenge #3: Talent shortage
The shortage of technically skilled labor including project designers, mining geologists, and engineers posed severe challenges for companies in the US metals and mining industry. The client, therefore, wanted to evaluate the capital requirement for recruiting skilled labor in the US.
Owing to unexpected volatility in commodity prices, many metals and mining companies had to close down operations or make serious cuts in the size of their workforce. Our market intelligence solution can help you to keep pace with market changes and adapt to the fast-changing marketplace. Contact us today.
Our Approach
The experts at Infiniti Research adopted a five-phased approach that involved:
Market opportunity analysis to gain insights into the current market scenario and forecast future market changes
Competitive intelligence engagement to analyze the top companies in the US metals and mining industry. This phase of the engagement also involved analyzing competitors’ product offerings, capabilities, marketing initiatives, and capital investment.
Customer intelligence engagement to understand the factors that influences customer decision and assess their demands to better align products to their needs.
Market entry strategy to understand barriers to market entry and identify the best route to enter the US metals and mining industry.
Technology assessment to identify cost-effective technologies in the US metals and mining industry.
Results Obtained
The insights obtained from Infiniti’s market intelligence engagement helped the client to thoroughly analyze the US metals and mining market changes and industry developments. Also, the client was able to consistently predict commodity demand or price movements.
In addition, by gathering competitive insights, the client was able to understand how the top companies in the US metals and mining industry tackled the rising industry challenges and managed resource scarcity issues. The client was also able to identify the cost-effective technologies and processes undertaken by their competitors to enhance business efficiency.
The client chose to partner with a third-party service provider in order to limit the costs and risks associated with setting up new production and distribution center in the US. The client was able to successfully establish their operations in the US metals and mining industry. Besides, they were able to efficiently invest into cost-effective technologies and enhance operational efficiency.
Within two years of entering the US metals and mining industry, the client was able to exceed their sales expectation and increase profit margins by 31%.
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