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. 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 - Industry Investment Chapter
The industry has a medium level of capital intensity. For every dollar spent on capital, $5.13 is spent on labour. The industry typically requires large production facilities with specialised equipment, but these facilities have a long life span. To produce rolling stock, the cost of design, research and development is extremely high for locomotives, trams and passenger rail units. To manufacture and assemble these vehicles, the industry requires high numbers of skilled employees in the assembly process. Maintenance and repair services are also labour-intensive. Labour is general highly skilled and highly paid.
The production of wagons, especially for the Mining division, has risen over the past five years due to high demand... purchase to read more