Industry Analysis & Industry Trends
The Railway Equipment Manufacturing and Repair industry has faced a difficult five-year period, as the end of the mining investment boom negatively affected industry revenue. Over the five years through 2015-16, industry revenue is expected to decline at a compound annual rate of 4.6%, to reach $2.6 billion.
Industry revenue fell over the three years through 2013-14 as investment in railways by the mining sector slowed. Furthermore, the total amount of revenue generated in Australia has declined as industry firms have offshored local manufacturing operations. In 2014-15, public sector investment into passenger rail projects in major cities around Australia increased as governments aimed to alleviate the increasing congestion caused by strong growth in public transport patronage... purchase to read more
Industry Report - Industry Key Buyers Chapter
The industry has a high level of market share concentration, with the top four players accounting for an estimated 75.6% of industry revenue in 2015-16. The high level of market share concentration is attributed to the scope of capabilities of the larger players, which allows them to take on large projects that generate higher revenue. However, the industry is also characterised by a large number of smaller firms. These firms typically specialise in niche markets and are usually employed by the larger firms as sub-contractors. Market share concentration is expected to increase over the next five years as the large players continue to consolidate their market position... purchase to read more