We live in interesting times, to paraphrase Robert Kennedy, although he wasn’t necessarily talking about the mining or equipment industries.

Two years ago in this business, achieving sales increases of 2% would have been a struggle for most. Yet last year sales surged to 6% and are on track to hit 10% in 2007. The bad news is that for every average, there will be people above and below it. In this case, the big players in the market are increasing their sales by more than 20% while some of their smaller counterparts are in decline, their sales figures dropping by 10%.

To some extent, this all makes perfect sense. The big firms are in a position to exploit the emerging markets of China, India and Argentina. They are also benefiting from consolidation in the mine and quarry operators sector. In turn, consolidation in the equipment market means that a smaller number of companies are increasingly able to offer a full suite of machinery and equipment solutions to those operating at the coal face, as it were.

So is all this expansion adding up to extra profit? The answer, sadly, is no. And the reason, mainly, is the huge level of investment necessary to maintain company growth. One in three machinery and equipment businesses are actually losing money – a worrying situation not just for them, but also for the companies depending on them for supplies. I can see yet more firms changing hands in the not too distant future.

So what’s the good news? Well, price premiums are pretty high at the moment, so if you are of a mind to sell your company you could benefit from a nice lump sum, guarantee a survival route for you and your staff, and potentially take the business to a whole new level.

The other good news is that the UK market is still proving that it’s got what it takes. Companies like Hydra Mining Tools International Ltd and MMD Ltd are excellent examples of firms coping well in a period of dizzying expansion.