Suppliers target emerging economies.Mining equipment and service exporters from the North are experiencing a surge in exporting opportunities around the world, although small- and medium-sized firms continue to see barriers to entry into this rich market, says an official with a Sudbury-based mining equipment association. "These companies still need the financial and human resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. to go global," says Dick DeStefano, executive director of the Sudbury Area Mining Supply and Service Association (SAMSSA), a coalition of area suppliers who banded together collectively to tap into the global market. The association represents small- and medium-sized mining supply companies. Although smaller supply companies are involved in trade missions and are solidifying strategic alliances overseas, DeStefano says, a lot of the government assistance for state-sponsored trade missions tends to benefit large, already-established northern companies. "It's a shame the government hasn't helped them as much, because they are the ones who need it the most," he says. These smaller firms represent companies with fewer than 100 employees, who export between five to 30 per cent of their products internationally. Larger mining supply and service firms are known to have international market share already and export up to 50 per cent of product lines overseas. Many of the smaller firms aim to reach the 50 per cent target, but continue to face barriers. This barrier to entry is a loss to the northern economy, DeStefano says, because the global demand and price of base metals, such as nickel, copper, gold and iron ore, is at a 15-month peak. The price of metal, DeStefano says, is creating a huge demand for mining, which in turn fuels the need for mining equipment and efficient underground technologies. Nickel and copper producers like Inco and Falconbridge, he says, cannot keep up with the demand. The price for nickel, he says, has jumped to about six and seven dollars a pound. These companies only need to make about one dollar a pound to break even. Some northern companies are already seeing what this demand is doing to their market. Elasto Valve Rubber Products is a Sudbury manufacturer of rubber products that service the global mining market. The group just returned from a "solid two-week trade mission" in China and was stunned at the level of building and the "hunger for base metals." [ILLUSTRATION OMITTED] "In many places in China, every street corner has several construction cranes working at the same time. It is amazing," says Cal Hayes, vice-president of sales and marketing for the company. Industrialization industrialization Process of converting to a socioeconomic order in which industry is dominant. The changes that took place in Britain during the Industrial Revolution of the late 18th and 19th century led the way for the early industrializing nations of western Europe and and the opening of the free market translates into tremendous opportunities in the world's largest market. Hayes noticed that, wherever he went, he would receive audiences of 20 to 30 engineers and other specialists who wanted to know about the technology he had to offer. Whereas in Sudbury, he would be hard-pressed to get five engineers out for a technology meeting. In the end, he says he solidified a deal between half a million to a million dollars. Mining analyst Paul Murphy Paul Murphy could refer to:
He says that Northern Ontario's reputation for expertise in underground mining equipment and technical know-how makes it a reliable place to invest for mining companies in South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. , Asia and Africa. Companies abroad know that the North, particularly Sudbury, has many, many years ahead of it in terms of mine survival. They see the technology being continually tested through use in northern mines so they come to trust it for use in their own mines, he says. Mike Castron is the technical sales manager sales manager n → gerente m/f de ventas sales manager n → directeur commercial sales manager sale n → for Cast Resource Equipment, a mining equipment supplier in Lively. He says the quality and expertise that northerners are able to put into their mining technology and supplies allows the North to maintain "competitive pricing" on the international mining market. He contends that mining companies from Chile, Peru, Mexico and Australia keep coming back to northern suppliers because they know that world leaders For a list of heads of state, see . World leaders is a MMORPG. The game involves creating a state, joining an alliance and going into war. It is mostly played by players from Israel, China, USA, Britain, Brazil and Saudi-Arabia. like Inco and Falconbridge are using it and they can depend on knowledgeable servicing of product lines. Northern Ontario Northern Ontario is the part of the province of Ontario which lies north of Lake Huron (including Georgian Bay), the French River and Lake Nipissing. Northern Ontario has a land area of 802,000 km² (310,000 mi²) and constitutes 87% of the land area of Ontario, although it , however, should be cautious about all these factors, Murphy says. Although Murphy believes that dependability will probably always be a market driver for northern equipment suppliers, they should always realize that global demand may change that in a heartbeat immediately. See also: heartbeat no matter how good the technology is. Other analysts point out that a shift in global demand for uranium ore directly impacted the Canadian industry, with Elliot Lake Elliot Lake, city (1991 pop. 14,089), S central Ont., Canada, W of Sudbury. The focus of a 1950s uranium-mining boom, it is now a retirement home center. as a prime example. "I expect this surge to last about two to three years. We hope the cycle lasts longer, but it's a very demand-driven scene," predicts Murphy. Murphy also says that Northern Ontario companies should not expect demand for mining supplies and services to increase in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and Europe, as these countries have turned internally for their metal needs. Suppliers should continue to target emerging economies, such as China and India. The building boom in China, an ambition by the government to electrify e·lec·tri·fy tr.v. e·lec·tri·fied, e·lec·tri·fy·ing, e·lec·tri·fies 1. To produce electric charge on or in (a conductor). 2. a. the entire country, and the development of new automotive plants make metal and mining operations a hot commodity there. Some markets, however, are starting to get their own act together and are giving Northern Ontario companies a run for their money, says DeStefano. Mining equipment suppliers in China, as well as South America and South Africa South Africa, Afrikaans Suid-Afrika, officially Republic of South Africa, republic (2005 est. pop. 44,344,000), 471,442 sq mi (1,221,037 sq km), S Africa. , are building their technological base and starting to service their own mines. "China is literally starting to buy up North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. companies because the demand is so enormous," he says. If companies can service their own domestic markets, they can save a tremendous amount of capital, he says. If international companies can produce their own technology, they will have less need and initiative to seek out suppliers. Proof that international mining markets are developing their own mining technology and supply servicing outlets is evidenced, he states, by the fact that more and more international suppliers are attending mining expositions. For example, at a recent exposition in Las Vegas Las Vegas (läs vā`gəs), city (1990 pop. 258,295), seat of Clark co., S Nev.; inc. 1911. It is the largest city in Nevada and the center of one of the fastest-growing urban areas in the United States. , Nevada, about 3,000 of 20,000 booths were occupied by international mining companies. www.samssa.ca www.pwcglobal.com www.evrproducts.com www.castresource.com By JOSEPH QUESNEL Joseph Quesnel (15 November 1746 – 3 July 1809) was a French Canadian composer, poet, and playwright. Among his works were two operas, Colas et Colinette and Lucas et Cécile; the former is considered to be the first Canadian opera. Northern Ontario Business Northern Ontario Business is a Canadian magazine, which publishes monthly in Greater Sudbury, Ontario. The magazine covers business news and issues in Northern Ontario. |
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