Industry insights and figures Mining support service activities

Operating margin
-1.2 %
▼ -1.7pp
2019
Companies
36
2019

Key insights Mining support service activities

Actionable signals from current data
IT
Average operating result: -1.2% of revenue (2019).
Personnel costs: 32.4% of revenue (2019).
Number of companies: 36 (2019).

Sector outlook Mining support service activities

Automated analytical commentary based on the most recent Eurostat figures

Industry overview

The Mining support service activities sector across Italy comprises approximately 36 enterprises employing about 1,567 people and generating €423 M in net turnover in 2019. The average enterprise size is – employees per firm. This is a useful yardstick when assessing whether your own operation sits within the typical scale band of the sector.

Profitability

With a negative operating margin of -1.2% of revenue in 2019, the sector reports €-5 M of gross operating surplus (Eurostat's EBITDA-equivalent, before depreciation). This figure provides the headline benchmark against which an individual operator can sanity-check their own bottom line, values significantly below indicate cost or pricing pressure, those above suggest competitive advantage worth defending.

Cost structure

Cost of revenue dominates the Mining support service activities P&L at 70.2% of turnover, reflecting the high material and input content of activities in this sector. Personnel costs account for 32.4%, with energy purchases adding –. Procurement efficiency and contract management are therefore the two strongest profit levers for operators in this segment.

Trend & trajectory

Over the period 2010 to 2019 the operating margin moved from 19.3% to -1.2% (-20.5 percentage points), a deteriorating trajectory that warrants attention. Sectors with stable or improving margins tend to reflect successful pass-through of input costs and disciplined capacity management; declining margins typically point to either over-supply or a structural cost squeeze that warrants strategic review.

Costs by category Mining support service activities

Sector average % of revenue
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Cost structure for Mining support service activities in IT, 2010 to 2019, expressed as percentage of revenue.
Revenue / costs 2010 2012 2013 2014 2015 2016 2017 2018 2019
Total revenue 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Personnel costs (total) 28.6% 25.3% 28.6% 9.2% 8.0% 16.7% 31.5% 32.7% 32.4%
Gross wages 20.9% 18.4% 20.6% 6.5% 5.5% 10.6% 22.3% 23.1% 22.9%
Social and pension contributions 7.7% 6.9% 8.0% 2.8% 2.5% 6.1% 9.2% 9.5% 9.5%
Other costs 52.1% 60.6% 56.6% 84.1% 81.1% 49.1% 64.7% 66.8% 68.8%
Gross operating surplus (EBITDA) 19.3% 14.1% 14.8% 6.6% 10.9% 34.2% 3.8% 0.5% -1.2%

Source: Eurostat Structural Business Statistics (latest available year).

Operating result over 9 years

Sector average % of revenue
Average
11.4%
Peak
34.18%
2016
Low
-1.18%
2019
Latest
-1.18%
2019

Cost mix evolution

How costs have shifted as a share of revenue

Cost distribution as % of revenue Mining support service activities (2019)

Recommended next steps

Based on the latest available data for Mining support service activities