Industry Analysis & Industry Trends
The Railway Equipment Manufacturing and Repair industry has faced a difficult five-year period, as the end of the mining investment boom negatively affected industry revenue. Over the five years through 2015-16, industry revenue is expected to decline at a compound annual rate of 4.6%, to reach $2.6 billion.
Industry revenue fell over the three years through 2013-14 as investment in railways by the mining sector slowed. Furthermore, the total amount of revenue generated in Australia has declined as industry firms have offshored local manufacturing operations. In 2014-15, public sector investment into passenger rail projects in major cities around Australia increased as governments aimed to alleviate the increasing congestion caused by strong growth in public transport patronage... purchase to read more
Industry Report - Industry Analysis Chapter
The Railway Equipment Manufacturing and Repair industry's revenue is forecast to decline at a compound annual rate of 4.6% over the five years through 2015-16, to $2.6 billion. Reduced expenditure from the mining sector has negatively affected demand for freight-related railway equipment. However, this fall in demand is expected to be offset by increased government expenditure on passenger railway equipment in the two years through 2015-16. While this investment has not been enough to promote overall growth over the period, it is expected to boost industry revenue by 1.2% in 2015-16.
The high costs of manufacturing in Australia have made railway equipment manufacturing unprofitable... purchase to read more