Industry Analysis & Industry Trends
The Railway Equipment Manufacturing and Repair industry has managed to stay on track despite the difficult environment for manufacturing industries. Due to starting at a high level, industry revenue is forecast to decline at an annualised 3.1% over the five years through 2014-15, to $2.7 billion. Industry revenue is expected to contract by 3.6% during 2014-15.
Industry demand has been strong over much of the past five years, but is beginning to wane as investment in railways by the Mining division slows. Investment in commuter trains by state governments and increased government spending on rail networks have also affected the industry. The delivery of the last of 78 new trains as part of the Waratah project in Sydney caused industry revenue to decline during 2013-14... purchase to read more
Industry Report - Starting a New Business Chapter
The relatively small size of the domestic market is itself a barrier to entry. The development of new locomotives, passenger trains and trams is extremely expensive. The Australian market is simply not large enough for Australian firms to compete against international competitors, which are able to spread these costs over more units. As such, any new large operator needs to have networks with major international operators to access technology and designs. The manufacturing of this equipment is also very capital intensive, requiring a substantial initial investment. This deters many new operators.
Public transport operators are a major market for the industry. To win work, firms need to have close working relationships with transit authorities and state governments... purchase to read more