Rail Offers Surprising Growth Opportunity in Transportation Sector for Manufacturers

Economist Sees Rail Needs Surging in Response to Fuel Costs

Rockford, Ill. (Vocus/PRWEB ) April 25, 2008 -- An economist for the fabricating and metalworking industry has sifted through the current financial rubble of surging oil prices and transportation sector woes to find a major growth opportunity for manufacturers – the rail business.

Although in general the transportation arena has been hit hard by the economic downturn and many traditional areas are in some distress, one surprise in this sector is the rail industry with a solid expectation for growth given the realities of fuel costs

The surging demand for food commodities has been and will continue to be a boon for the rail sector. So is the demand for cleaner burning coal

There also is renewed interest in providing urban transportation alternatives, and that usually means some kind of light rail system. The rise of gas prices to current levels begins to make mass transit more popular and many communities are rushing to ‘get on board’

provide some dramatic new opportunities for rail and other infrastructure needs as well as the machines and carriages providing the transportation

By all accounts, this will be a field that grows exponentially in the years to come.

“Although in general the transportation arena has been hit hard by the economic downturn and many traditional areas are in some distress, one surprise in this sector is the rail industry with a solid expectation for growth given the realities of fuel costs,” says Dr. Chris Kuehl, economic analyst for the Fabricators & Manufacturers Association, International (FMA). Kuehl made his comments in the current FMA economic update newsletter Fabrinomics.

“The surging demand for food commodities has been and will continue to be a boon for the rail sector. So is the demand for cleaner burning coal,” Kuehl says. “In response, the major freight rail operations are discussing expansion and the need to buy more rail cars, specialized yard equipment and even the rail itself.

“There also is renewed interest in providing urban transportation alternatives, and that usually means some kind of light rail system. The rise of gas prices to current levels begins to make mass transit more popular and many communities are rushing to ‘get on board’,” he adds.

For companies involved in metal fabricating and related industries, these trends “provide some dramatic new opportunities for rail and other infrastructure needs as well as the machines and carriages providing the transportation,” Kuehl says. “By all accounts, this will be a field that grows exponentially in the years to come.”

Based in Rockford, Ill., the Fabricators & Manufacturers Association, Intl. (FMA), is a professional organization with more than 2,300 members working together to improve the metal forming and fabricating industry. Founded in 1970, FMA brings metal fabricators and fabricating equipment manufacturers together through technology councils, educational programs, networking events, and the FABTECH International & AWS Welding Show. FMA also has a technology affiliate, the Tube & Pipe Association, International (TPA), which focuses on the unique needs of companies engaged in tube and pipe producing and fabricating.

NOTE TO EDITORS: Chris Kuehl is available for interviews on this topic and other economic issues. Please contact Ben Arens at 1-800-837-7123 or via e-mail at barens@lcwa.com if you wish to schedule an interview.

For more information contact:
Ben Arens or Gary Goodfriend
L.C. Williams & Associates
(312) 565-3900 or (800) 837-7123
barens@lcwa.com or ggoodfriend@lcwa.com       

Patricia Lee
FMA
(815) 227-8286   
patl@fmanet.org   

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fabricating metalworking transportation manufacturers rail dr. chris kuehl fabricators & manufacturers association fma fabrinomics metal fabricating

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