Industry Analysis & Industry Trends
The Railway Equipment Manufacturing and Repair industry has performed strongly through the economic slowdown and is anticipated to grow over 2013-14. Revenue is expected to contract at a compound annual 0.2% over the five years through 2013-14. 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. In 2013-14, the industry is expected to be worth $3.4 billion, a 2.4% increase on 2012-13. 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 - 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