Mining Equipment, Technology, and Services Sector
This month, the Research Bulletin covers:
- Defining the Mining Equipment, Technology and Services sector’s output
- Recent trends in its output, reported revenues, workforce and comparisons to mining
Sizing the METS economy
In the financial year ending 2022-23 (FY23), the Mining Equipment, Technology, and Services (METS) sector contributed at least $80 million in output (products and services) to the Australian economy. 1 This is the sum total of a large cross-section of other industries and sectors. 2 For example, the ‘Exploration and Mining Support Services’ sub-industry had a METS output of $21.9 million (95% of the sub-industry’s total output).3 However, of all the METS output, this came down to 28% (Table 1). 4 Other industries, for example, the ‘Professional, Scientific, and Technical Services’, contributed $16.5 million or 21% of METS output in FY23 (Figure 1).
The METS sector is split across various other sectors and industries; in fact, for every $100 spent in METS, $14.78 goes to manufacturing, and $22.4 goes to other services (mostly automotive repair and maintenance) among others (Figure 1) 5.
METS sector’s output, revenues, and comparisons to mining
From 2012 to 2016, the mining industry’s revenue decreased by 10% (Figure 3) 6 . This resulted in the METS sector shrinking to $42.2 million (-16%) over the same period. 7 The COVID-19 period saw the mining industry’s revenue fall to negative 1% (-18 percentage points), causing METS to shrink 2% to $57.8 million. Over 56% of METS companies reported lower revenues over the COVID-19 period.8 However, the METS sector then increased in size every year to reach a series high of $78.4 million in FY23 (+86% compared to FY17).
METS as an exporter and competition from imports
Since 2013, approximately half of METS companies have exported their products, services, and/or technology to key markets in Southeast Asia, such as Indonesia and the Philippines, and others like the United States and New Zealand.9 By 2020, over two-thirds (65%) of METS companies were exporting.10 However, our analysis indicates that the METS sector is facing growing competition from imports (Figure 5). With METS imports increasing by roughly $6 million from FY13 to FY23. Expressed as a percentage of domestic METS output, imports have increased by 5%.
Employee compensation and work arrangements in METS
In FY13, there were 256,591 Full Time Equivalent (FTE) roles in the METS sector, comprised of 238,981 full-time and 35,220 part-time roles (Figure 6).11 FTE roles fell (-17%) to 213,905 by FY21.12 By FY23, FTE roles had largely recovered, coinciding with record mining revenues ($563 billion) and METS sector output ($78.4 million). However, part-time roles also increased to 44,010 (+25%) in FY23.
From FY13 to FY17, total employee compensation went from $26.4 million to $18.3 million (-30%) (Figure 7). 13 Following COVID-19, compensation recovered to $31.5 million (+41%), underpinned by gains from recovery and growth in FTE, full-time, and part-time roles.
Conclusion
This month’s research bulletin highlights the complexity of defining the METS sector and its contribution to the Australian economy. Despite challenges with our analysis due to its diverse composition and data, we found the METS sector has strengthened, with output reaching a record $78.4 million in FY23, driven by strong post-COVID-19 growth. Furthermore, workforce trends show a return to FY13 levels for role numbers, albeit with a shift toward more part-time work, while employee compensation has more than rebounded. The sector's growing export presence and diversification also underscore its significance in multiple markets.
Methods – Defining the METS sector
Defining the Mining Equipment, Technology and Services (METS) sector is complicated. Multiple definitions of the METS sector exist.14 Although, the Australian and New Zealand Standard Industrial Classification (ANZSIC) system defines most industries with relative accuracy, i.e., mining at the division level (highest level of ANZSIC). The METS sector is split across at least eight of these divisions, and across 20 sub-divisions (second tier of ANZSIC).15 This makes any analysis of METS challenging. One approach is to utilise input-output (IO) information that tracks the flow of output from one industry to another.16 However, in such analysis, IO categories do not uniformly correspond to ANZSIC on a 1:1 basis.17
Despite this issue, this is a relatively straightforward approach that allows us to define the METS sector. METS is defined as support or ancillary activities that define the mining industry. Where the mining industry is defined as a composite of these seven categories18:
- 601 Coal Mining
- 801 Iron Ore Mining
- 802 Non-Ferrous Metal Ore Mining
- 901 Non-Metallic Mineral Mining
- 1001 Exploration and Mining Support Services*
- 2101 Iron and Steel Manufacturing*
- 2102 Basic Non-Ferrous Metal Manufacturing*
At the broadest possible level, the METS sector can be defined using 24 IO categories.19 These cover intermediate products and services (or output) aligned to the intent of ‘METS’. Such as, machinery and equipment manufacturing, civil engineering, and road and rail transport, with exclusions for more ‘generic’ or incidental outputs that may be important to the industry, like finance and accommodation, but not to METS’ definition. METS’ 24 IO categories are20:
- 1001 Exploration and Mining Support Services*
- 1803 Basic Chemical Manufacturing
- 1902 Natural Rubber Product Manufacturing
- 2303 Railway Rolling Stock Manufacturing
- 2401 Professional, Scientific, Computer and Electronic Equipment Manufacturing
- 2403 Electrical Equipment Manufacturing
- 2405 Specialised and other Machinery and Equipment Manufacturing
- 2801 Water Supply, Sewerage and Drainage Services
- 2901 Waste Collection, Treatment and Disposal Services
- 3101 Heavy and Civil Engineering Construction
- 4601 Road Transport
- 4701 Rail Transport
- 4801 Water, Pipeline and Other Transport
- 4901 Air and Space Transport
- 5201 Transport Support services and storage
- 5701 Internet Service Providers, Internet Publishing and Broadcasting, Websearch Portals and Data Processing
- 5801 Telecommunication Services
- 6001 Library and Other Information Services
- 6601 Rental and Hiring Services (except Real Estate)
- 6901 Professional, Scientific and Technical Services
- 7001 Computer Systems Design and Related Services
- 8110 Technical, Vocational and Tertiary Education Services
- 9401 Automotive Repair and Maintenance
- 9402 Other Repair and Maintenance
*In Deloitte’s research, these IO categories included custom inclusions and exclusions that we have not been able to replicate using publicly available data. Enquires have been made with the ABS.
1 Excluding accounting for its broader contribution to the likes of employment and taxes.
2 Defining the METS sector is complicated. Our approach to defining the METS is to track inputs angured outputs at the sub-industry level from the ABS Input Output tables to draw a picture of a group of industries that we associate with METS. Please see methods section for more detail.
3 ABS, “National Accounts: Input-Output Tables 2022-23,” 2023.
4 ABS, “National Accounts: Input-Output Tables 2022-23,” 2023.
5 These calculations are based on attempting to match the categories of the ABS Input-Output tables to ANZSIC, these are rough equivalences and may correspond to a specific activity in the ANZSIC division. For example, division S – other services represents only outputs from automotive repair and maintenance (9401) and professional, scientific, and technical services (6901).
6 IBISWorld, and Ryan Tan, "Mining," November 2024.
7 IBISWorld, and Ryan Tan, "Mining," November 2024.
8 Austmine, “2020 National METS Survey,” 2020.
9 Deloitte, “Mining and METS: engines of economic growth and prosperity for Australians,” 2017.
10 Austmine, “2020 National METS Survey,” 2020.
11 Using a similar method, it is possible to match workforce data to METS’ approximate workforce over time. This method applies the aforementioned percentages (e.g., Exploration and Mining Support Service’s 95% in FY23) to workforce data for each IO category. However, because someone can work in more than one industry in any given FY or point in time, this data is better understood as an ‘upper limit’ for METS workforce numbers that reflects the number of ‘roles’ rather than ‘workers’. Further, as the ABS only has data for the IO categories for FY13 and FY19 to FY23, we have treated the former as a baseline and compared it to the latter to illustrate both longer-term, and more recent, workforce trends. FTE roles are measured as full-time plus 50% of part-time for a given industry. Given this and the number of full-time roles, trends in FTE roles are primarily driven by those in full-time roles.
12 Driven by a (-18%) fall to 195,054 full-time roles
13 It is possible to roughly approximate the METS workforce’s compensation using the same method that applies the aforementioned percentages for each IO category. However, direct comparisons to the number of roles or employee pay are not possible, due to the issue with employees being able to work in more than one industry in any given FY or point in time.
14 Deloitte, “Mining and METS: engines of economic growth and prosperity for Australians,” 2017.
15 NCVER, “Readiness to meet demand for skills: A study of five growth industries,” 2014.
16 Deloitte, “Mining and METS: engines of economic growth and prosperity for Australians,” 2017.
17 ABS, “Classifications for Australian System of National Accounts: Concepts, Sources and Methods,” 2021.
18 Deloitte, “Mining and METS: engines of economic growth and prosperity for Australians,” 2017.
19 Deloitte, “Mining and METS: engines of economic growth and prosperity for Australians,” 2017.
20 Deloitte, “Mining and METS: engines of economic growth and prosperity for Australians,” 2017.
About the author
Dr Aneeq Sarwar
Dr Aneeq Sarwar is Senior Manager, Workforce Planning and Policy at AUSMASA, overseeing our research, workforce planning, and policy functions. Aneeq is an experienced research leader who has managed quantitative and qualitative research projects across industry, academia, and government. He is widely published with various national and international bodies and is passionate about using data insights to drive decision-making that benefits society and communities. Aneeq helps drive policy, research and decision-making by leveraging stakeholder consultations.