How is Maptek dealing with Mining Industry financial downturn?

2009 promises to be a very different year than the past five in the mining industry and the global economy. Volatility and uncertainty in global markets, working in tandem with the slowdown in the major economies around the globe, has resulted in an unprecedented decline in commodity prices; the result being a dramatic downturn in the mining industry. Maptek, like most companies in the mining sector, is feeling the effects of the downturn.

This year will present many expected and unexpected changes to all mining-related businesses. Those companies able to quickly adapt their business process and practices to meet both the changing requirements of customers and the changing economic landscape will find themselves in a position to not only survive, but thrive, when economic conditions improve.

At Maptek we will focus on both the short-term challenges, as well as opportunities that may present themselves 3 to 5 years beyond the present crisis. We will embrace the change required to adapt to the changing nature of our industry.

In the near-term, Maptek will continue to focus on the customer first and foremost while implementing operational improvement measures such as effective cost reduction programs and process improvement across our entire business.

Listening to our customers and understanding their changing requirements will remain the centerpiece of our strategy to weather the current economic crisis and emerge an even stronger company. We will continue to invest in areas where we can streamline efficiencies while better serving our customers. One example is our global roll out of Salesforce.com throughout our business units, providing for improved customer service and relationship management. Maptek will strive to provide consistent, high-quality customer service and support to all our customers and the implementation of a globally consistent CRM system provides one of the tools to accomplish this.

Another example is our commitment to making expert services available to all clients to assist them at a time when they need these services more than ever. Maptek continues to invest and expand in our service units for Vulcan, I-Site and Minesuite. Our technical services people are readily available for our customers training and consulting requirements.

Finally, all the people of Maptek are focusing on reducing, and in many cases eliminating, all non-essential operating expenditures. All of us at Maptek understand that we are stewards of the business and that we must bring focus to delivering quality products and services to our customers in the most cost efficient manner possible.

In the longer term, Maptek’s senior management will look 3 to 5 years out to evolve our forward-looking strategy for the growth of Maptek and the evolution of the products and services we provide. Our Vulcan, I-Site and MineSuite businesses continue to adopt the same standards, systems and processes in their product development units. Product development management and staff in all the business units are working in a collaborative fashion to implement seamless integration of our wide–ranging products and their associated capabilities; the end goal to deliver the total mining solution to our customers. We will also continue to look at viable partnership opportunities and long-term capital investments in our products that make sense to our customers and provide them with better tools with which to succeed. Maptek’s long-term strategy will provide the end result of our firm emerging from the current economic crisis and industry downturn in yet a stronger competitive position that we are today.

Times are changing and at Maptek we will remain proactive in adapting to and learning from the changes our industry has and will experience going forward.

As Eric Hoffer once said, “In times of change…Learners will inherit the earth, while the learned will find themselves beautifully equipped to deal with a world that no longer exists.”

As always, please feel free to email me if you have any comments or questions. – BH