Railcar Manufacturing in the US Industry Market Research Report from IBISWorld Has Been Updated
New York, NY (PRWEB) October 20, 2014 -- The Railcar Manufacturing industry has chugged along in the past five years, increasing at an annualized rate. Although the recession forced the industry to a stop, with declines in industrial production and total trade value leading to greatly decreased freight transportation levels, as the economy began to recover, so did industry revenue. Indeed, the industry aggressively rebounded in 2011 and 2012, experiencing revenue increases. The resumption of global trade, stimulus funds that targeted public transportation and companies making their way through a backlog of orders, all pushed the industry to growth. As a result of these factors, industry revenue is set to increase in 2014.
According to IBISWorld Industry Analyst Lucas Isakowitz, “The industry has benefited during the past five years from a variety of legislation, which has increased funding for railway projects.” The American Recovery and Reinvestment Act of 2009 pledged funds toward the High-Speed Intercity Passenger Rail program (HSIPR), a project that aims to establish and maintain high-speed connections between major cities. As of September 2014, 52 HSIPR construction projects were underway in 21 states and the District of Columbia. Additionally, the industry is protected from import penetration by the “Buy America” rules, which require all contracts that use Federal Railroad Administration funds to manufacture industry products in the United States and use US suppliers. The “Buy America” rules specifically require that at least 60.0% of the value of the subcomponents for rail stock and equipment be produced in the United States and that the final assembly happen on US soil.
“The industry is expected to remain on track in the next five years, with increasing industrial production and higher total trade value leading to strong demand for trail transportation,” says Isakowitz. As freight volumes increase, railroad companies will likely demand higher quantities of railcars to both expand and maintain their fleets. Additionally, exports of industry products are expected to continue growing as emerging economies increasingly use railway transport both for freight and passenger services. As a result, industry revenue is expected to increase in the five years to 2019.
For more information, visit IBISWorld’s Railcar Manufacturing in the US industry report page.
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IBISWorld industry Report Key Topics
This industry manufactures railcars for passenger, freight and military use. These railcars include gondolas, tank cars, flatcars, refrigerator cars, covered hoppers and intermodal cars.
Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
Gavin Smith, IBISWorld, +1 (310) 866-5042, [email protected]
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