Industry Analysis & Industry Trends
The Railway Equipment Manufacturing and Repair industry has faced a difficult five years, as the end of the mining investment boom negatively affected industry revenue. Increased government spending on passenger transport projects has partially offset declines in mining investment. Over the five years through 2016-17, industry revenue is expected to decline at a compound annual rate of 3.4%, to total $2.6 billion.
Industry revenue fell over the three years through 2013-14 due to slowing investment in railways by the mining sector. Furthermore, the total amount of industry-related revenue generated in Australia has declined as industry firms have offshored local manufacturing operations... purchase to read more
Industry Report - Industry Investment Chapter
The industry has a medium level of capital intensity. For every dollar spent on capital, an estimated $4.47 is spent on labour. The industry typically requires large production facilities with specialised equipment, but these facilities have a long life span. The cost of design and research and development is extremely high for locomotives, to produce trams and passenger rail units. Labour is generally highly skilled and highly paid and the industry requires large numbers of employees in the manufacturing process. Maintenance and repair services are also labour-intensive. Over the past five years, capital intensity has increased as many operators have looked to cut wage costs through restructuring and outsourcing some labour-intensive manufacturing operations to China and India... purchase to read more