Thinking of Buying an Earth Supplies Business in Australia? Here Are 3 Vital Questions to Ask
Australia’s mining and construction machinery manufacturing sector, which includes the production and supply of earthmoving and excavation machinery, generated $4.9 billion in revenue in 2025 across 859 enterprises, employing 9,540 people.
The industry recorded a 12.5% profit margin and total profits of $612 million, reflecting steady recovery after supply chain disruptions and construction slowdowns. Over the next five years, revenue is projected to grow 2.6% annually, reaching $5.6 billion by 2030, driven by mining expansion, infrastructure investment, and the push for renewable energy projects that demand high-quality earth materials and machinery.
1. Is the Business Financially Sustainable and Linked to Stable End Markets?
Why It Matters:
Earth supplies businesses, including sand, gravel, and soil distribution for mining and construction, depend heavily on infrastructure and resource investment. Profitability rises when operators secure long-term supply contracts with builders and mining contractors.
What to Check:
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Revenue performance – The sector earns $4.9 billion annually, projected to rise to $5.6 billion by 2030, supported by infrastructure and mining growth.
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Customer base – Core markets include mineral mining (35.7%), building construction (28.2%), and non-building infrastructure (23.3%).
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Profit margins – Average at 12.5%, higher than the construction sector average, reflecting strong aftermarket and service sales.
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Cost structure – Wages ($1.04 billion) and materials (steel, rubber, and parts) dominate operating expenses. Businesses with direct supplier contracts or recycling initiatives achieve better margins.
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Commodity trends – Rising demand for lithium, copper, and nickel has boosted mining equipment sales and, by extension, demand for earth materials and aggregates.
2. Does the Business Have Reliable Supply Chains and Strategic Location?
Why It Matters:
Earth supply and equipment businesses rely on access to raw materials and transport networks. Proximity to mining hubs and infrastructure corridors significantly affects profitability.
What to Check:
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Location advantage – Western Australia (26.6%) and Queensland (25.1%) dominate production due to proximity to major mining sites and resource exports.
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Transport and logistics – Strong access to ports, rail, and heavy vehicle routes reduces costs for bulk material delivery.
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Supplier partnerships – Long-term supply deals with quarries, steel, and component manufacturers ensure price stability and consistent stock availability.
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Aftermarket and servicing – Many manufacturers, such as Komatsu and FLSmidth, now derive 50% of their income from maintenance and parts, offering stable recurring revenue streams.
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Import exposure – Imports capture nearly 80% of domestic machinery demand, highlighting the need for local suppliers to emphasise Australian standards and product quality.
3. Is the Business Positioned for Technological and Environmental Shifts?
Why It Matters:
Automation, 3D printing, and emission reduction targets are reshaping Australia’s earthmoving and machinery sectors. Businesses that integrate technology and meet environmental standards are better positioned for growth.
What to Check:
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Automation and AI – Firms like Komatsu and Austin Engineering have implemented autonomous haulage and diagnostic systems, improving safety and reducing labour dependency.
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Sustainability standards – Compliance with Australian Standard ME-018 (Mining Equipment) and environmental laws is essential for all earth equipment suppliers.
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Energy efficiency – Buyers increasingly demand low-emission, high-efficiency machinery; 3D printing is now used for lightweight components and reduced material waste.
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Government investment – The 2024–25 Federal Budget’s $16.5 billion for road and rail infrastructure will fuel future demand for excavation materials and equipment.
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Renewable projects – Growth in wind, solar, and data centre construction continues to support machinery and earth supply demand.
Ready to Invest in a Thriving Earth Supplies Business?
Australia’s earth supplies industry remains a key driver of national infrastructure and mining output.
With growing renewable energy projects, rising demand for critical minerals, and government-backed infrastructure programs, businesses offering reliable supply chains, eco-friendly materials, and integrated servicing will lead the next phase of expansion.
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