Mining, heavy engineering machinery and equipment

The Department of Employment, Economic Development and Innovation (DEEDI) has undertaken a desktop review of the Mining, Heavy Engineering and Machinery Equipment (MHEME) sector based on information available in August 2009. 

The review covered key issues such as:

•  the current state of play with demand and unused capacity
•  the current situation of the industry and companies involved with the industry
•  likely demand over the next 12 months and longer term
•  short and long-terms strategies.

A supply chain approach was used to analyse the MHEME sector, which involved an analysis of key upstream and downstream related and supplying industries. 

Some of the key findings extracted from the report are presented below: 

• The MHEME sector has approximately 3,000 businesses producing about 15 per cent of the total annual production in the manufacturing industry in Queensland 
• The sector employed around 30,000 people in 2007-08
• Over the short-term, industry growth is expected to remain subdued in line with lower commodity prices and weakening global demand
• Over the medium and long-term the sector is expected to significantly benefit from increased demand in line with the expected global economic recovery and in addition the commencement of coal, LNG, mining and mineral projects throughout Queensland and its regions 
• As a consequence, it is critical that government, industry and businesses work together to position the industry for economic recovery to ensure it has the required resources and support to take advantage of the work that is currently available and return to growth beyond the current downturn. 

A complete version of the report can be accessed here.