Industry Analysis & Industry Trends
The Global Iron Ore Mining industry's financial performance has been highly volatile in recent years. From 2008 to 2013, the industry weathered through triple-digit revenue spikes and double-digit declines. After two years of extraordinary growth in 2010 and, to a lesser extent, 2011, revenue contracted in 2012 due to plummeting prices of iron ore. In 2013, however, industry performance is expected to recover on the back of rebounding iron ore prices. Consequently, industry revenue is expected to grow 4.7% to total $264.3 billion over the year. Profit has been similarly unstable, though it has increased overall at an annualized rate of 5.5% to about 43.2% of revenue in 2013... read more
Industry Investment
The Global Iron Ore Mining industry is highly capital intensive, as substantial amounts of capital are invested in heavy equipment necessary for mining activities. The ratio of labor costs to depreciation charges is indicative of an industry's labor and capital intensities, as this shows the amount of revenue absorbed by labor inputs and capital inputs into production. Overall, the ratio of wages to depreciation stands at 1 to 4.71, meaning that for every dollar spent on labor, about $4.71 is allocated yearly on capital investments. This level of capital intensity is considered high relative to other industries in the general economy... read more