Industry Analysis & Industry Trends
The Railway Track Construction industry builds three kinds of rail networks to transport passengers, intermodal freight and mining output. In the past five years, the industry has displayed wide cyclical fluctuation, surging to a record peak in 2011-12 before trending down sharply over the past three years. Construction of intermodal freight and passenger networks relies on government funding, and expansion plans are developed to meet long-term objectives. Governments are heavily involved in the downstream industries as both owners and operators of track.
The tipping point for the industry came in the late 2000s, when the Federal Government announced a major package of infrastructure investment to counter the impact of the global financial crisis... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
The industry is in a declining stage of its life cycle, reflecting the substantial installed capacity on existing rail networks and the long effective life of these assets.
Over the 10 years through 2019-20, industry value added, which measures the industry's contribution to the overall economy, is forecast to decline by an annualised 0.9%. This contraction contrasts with GDP growth in Australia over the same period (2.7% annualised). This means the Railway Track Construction industry will contribute a declining share of the overall economy.
The industry is heavily reliant on government funding for rail projects and this growth is principally determined by the supply of funds rather than demand for services... purchase to read more