Increased government spending and higher freight demand support growth
Melbourne, Australia (PRWEB) February 14, 2013
The Railway Equipment Manufacturing industry has performed strongly over the five years through 2012-13, with revenue expected to increase at a compound annual rate of 3.7%. Industry order books have been strong, with investment by state governments in commuter trains, increased government spending on rail, and strong growth in demand for bulk rail freight transport. According to IBISWorld industry analyst Caroline Finch, “The industry has been able to prosper despite the strengthening Australian dollar, which has made many other areas of manufacturing uncompetitive”.
The industry has realigned itself to focus on high-tech areas of rail manufacturing, with the bulk of industry revenue coming from the manufacture of components rather than outright rolling stock. “This has allowed specialised smaller players to remain in business even as the major players turned towards assembly, shifting less complex production overseas to countries with low labour costs”, says Finch. The biggest companies in the industry in 2012-13 are Downer EDI Limited, UGL Limited, Bombardier Transportation Australia Pty Ltd and Bradken Limited.
A large factor in the Railway Equipment Manufacturing industry's growth has been the simultaneous increase in demand from all major markets over the five-year period. With changing supply chain and manufacturing models, the industry's major players have been able to keep up with demand. This spurt of investment is expected to stabilise in the next five years. However the maintenance, repair and refurbishment contracts that come with increased capacity will help support industry revenue growth, as will the strong order books seen in 2012-13.
For more information, visit IBISWorld’s Railway Equipment Manufacturing report in Australia industry page.
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IBISWorld industry Report Key Topics
The Railway Equipment Manufacturing industry consists of establishments that manufacture or repair railway or tramway locomotives and rolling stock, such wagons and passenger carriages. This industry excludes the construction and maintenance of railroads.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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