Industry Analysis & Industry Trends
The Railway Equipment Manufacturing and Repair industry has managed to stay on track despite the overall difficult environment for manufacturing industries. Industry revenue is forecast to grow at an annualised 3.6% over the five years through 2013-14, to reach $3.4 billion.
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. The industry has been able to prosper despite the strengthening Australian dollar, which has made many other areas of manufacturing uncompetitive... purchase to read more
Industry Report - Industry Investment Chapter
The industry has a medium level of capital intensity, with capital to labour ratio of 1.0:4.85. This means that for every dollar spent on capital, a further $4.85 is spent on labour. The industry typically requires large production facilities with specialised equipment, but these facilities have a long lifespan. To produce rolling stock, the cost of design, research and development is extremely high with locomotives, trams and passenger rail units. To manufacture and assemble these vehicles, the industry requires high number of skilled employees in the assembly process. Maintenance and repair services are even more labour intensive. Labour is general highly skilled. Industry labour costs have increased as firms compete with the Mining division for limited staff... purchase to read more