SOURCE: Frost & Sullivan

Frost & Sullivan

March 10, 2011 08:30 ET

Surge in Demand for Mined Commodities Ripples in the Mining Industry Personal Protective Equipment Markets, Finds Frost & Sullivan

MOUNTAIN VIEW, CA--(Marketwire - March 10, 2011) - Intensifying mining operations driven by the increase in demand and the rising focus on safety standards have provided an impetus to the global mining industry personal protective equipment (PPE) markets. This, coupled with the influx of foreign and national investments for mining caused an increase in the employment rates in the industry. This state of affairs should persist with high demand for commodities from Brazil, Russia, India, and China (BRIC).

New analysis from Frost & Sullivan (http://www.chemicals.frost.com), Global Mining Industry Personal Protective Equipment Markets, finds that the markets earned revenues of $1.02 billion in 2009 and estimates this to reach $1.38 billion in 2016.

If you are interested in a virtual brochure on this study, please send an e-mail to Sarah Saatzer, Corporate Communications, at sarah.saatzer@frost.com, with your full name, company name, job title, telephone number, company e-mail address, company website, city, state and country.

The escalating awareness among both employers and employees about the importance of PPE has bolstered the sales of new equipment. The increase in awareness and enforcement of health and safety standards by local governments has also assisted in easing the pressure on the markets caused by the economic downturn.

The drop in the demand for commodities, during the economic downturn, led to a cut in global mining activities, due to which, companies incurred losses. This compelled mining companies to slash their budgets for many activities including the purchase of PPE. A reduction in the overall employment scenario also affected the PPE industry. A gradual increase in lower priced imports put immense pressure on products in the U.S., Canadian and Australian markets and intensified the price wars among local manufacturers.

Nevertheless, on the back of the economic recovery, the markets for metallurgical coal, gold, iron ore, copper and other metal and mineral commodities are rapidly covering lost ground, implying a rise in employment and therefore, the demand for PPE.

Even though the markets for PPE are expanding, health and safety standards in high-potential regions such as China, South America, South Africa and other developing nations are generally low. There is little importance attached to health and safety, resulting in poor compliance and usage of PPE. However, this situation is changing, with the governments of many countries passing stringent safety regulations.

"Government initiatives aimed at improving mine safety will play a crucial role in increasing PPE compliance in the mining industry," says Frost & Sullivan Research Analyst Ashwini Ravishankar.

To further consolidate their market advantage, participants must constantly look to innovate and provide products that deliver price and performance value. In an extremely price-sensitive market in already straitened circumstances, mining companies are looking to purchase products that offer the best value for their money. End users desire more innovative solutions that meet their needs in addition to providing value.

"For instance, technological advancements in the relatively mature hearing protection market (ear muffs that incorporate active noise reducing (ANR) technologies) are now attracting a lot of interest among certain mining industries," notes Ravishankar. "The introduction of innovative products that are advanced in terms of comfort, performance and functionality are likely to phase out existing ones, catalyzing the growth of the mining industry PPE market."

Global Mining Industry Personal Protective Equipment Markets is part of the Chemicals & Materials Growth Partnership Services program, which also includes research in the following markets: Asia Pacific Personal Protective Equipment Markets July 2010 and Western Europe Industrial Protective Clothing October 2010. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

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Global Mining Industry Personal Protective Equipment Markets
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