Thin as a rail: Profit and revenue have declined due to falling demand from the mining sector

The Railway Equipment Manufacturing and Repair industry has undergone a difficult period over the past five years, with the end of the mining investment boom negatively affecting industry revenue. However, increased government spending on passenger transport projects has partially offset declines in mining investment. Industry revenue is expected to decline at an annualised 4.1% over the five years through 2017-18, to total $2.6 billion.The mining sector's investment in railways has slowed and negatively affected the industry over the past five years. Furthermore, industry-related revenue has declined as industry firms have offshored local manufacturing operations...read more.

Industry Statistics & Market Size
Revenue
$3bn
Annual Growth 13-18
-4.1%
Forecast Growth 18-23
Profit
Employment
4,544
Businesses
114

Industry Threats & Opportunities

  • The industry is realigning itself to focus on high-tech rail manufacturing areas
  • The high cost of manufacturing in Australia has reduced industry profitability
  • Enterprise and employment numbers are expected to decrease over the next five years
  • Industry Report - Industry Locations Chapter

    The industry is concentrated in the most populous states, with over 70% of industry enterprises expected to be based in New South Wales and Victoria. These states have vast rail networks for freight, suburban and interurban passenger rail.Industry manufacturing in Western Australia is geared towards rolling stock provided to the mining sector, with expansions and investment in passenger networks supplementing revenue for industry operators. New freight railways that have been constructed to transport bulk commodities to ports have increased demand for new rolling stock and maintenance of existing vehicles in Western Australia. As a result, establishment numbers have risen in the state over the past five years.Queensland accounts for a small share of enterprises. Que...purchase to read more.

    Additional Insights for the Railway Equipment Manufacturing and Repair Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Railway Equipment Manufacturing and Repair Industry are

  • Undertaking technical research and development
  • Economies of scope
  • Well developed internal processes
  • IBISWorld analysts also discuss how external factors such as Demand from rail freight transport and Domestic price of iron and steel in the Railway Equipment Manufacturing and Repair industry impact industry performance..

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    What's in this report

    What is the Railway Equipment Manufacturing and Repair Industry?

    Industry companies manufacture or repair railway locomotives and rolling stock. This includes rail carriages, tram cars and wagons. The industry excludes railroad construction.

    Industry Products
  • Repair and maintenance services
  • Other services
  • Passenger railcars fit-outs
  • Locomotives and components
  • Freight wagons and components
  • Industry Activities
  • Locomotive
  • Railway rolling stock
  • Repair of locomotives and rolling stock
  • Tram
  • Cable car
  • Rail carriage
  • Railway gear and parts
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from rail freight transport
  • Domestic price of iron and steel
  • Demand from rail passenger transport
  • Trade-weighted index

  • Current Performance
  • Freight and passenger rail
  • International trade
  • Changing product mix
  • Chart: Revenue Growth

  • Industry Outlook
  • Staying viable
  • Passenger rail investment
  • Table: Railway Equipment Manufacturing and Repair Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Railway Equipment Manufacturing and Repair Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Grain Growing
  • Sugar Cane Growing
  • Black Coal Mining
  • Iron Ore Mining
  • Rail Freight Transport
  • Rail Passenger Transport

  • Key Selling Industries
  • Fabricated Metal Product Manufacturing
  • Iron and Steel Casting
  • Nut, Bolt, Screw and Rivet Manufacturing
  • Power Automation Products and Other Electrical Equipment Manufacturing
  • Spring and Wire Product Manufacturing
  • Steel Pipe and Tube Manufacturing

  • Products & Services
  • Repair and maintenance services
  • Passenger railcars fit-outs
  • Locomotives and components
  • Freight wagons and components
  • Other services
  • Chart: Railway Equipment Manufacturing and Repair Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Passenger railway operators
  • Freight railway operators
  • Mining companies
  • Tram operators
  • Chart: Major Market Segmentation for the Railway Equipment Manufacturing and Repair Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Railway Equipment Manufacturing and Repair

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Railway Equipment Manufacturing and Repair Industry

  • Industry Globalization
    UGL Pty Limited, Bombardier Transportation Australia Pty Ltd, Downer EDI Limited,
  • Table: UGL Pty Limited - financial performance
  • Table: Bombardier Transportation Australia Pty Ltd - financial performance
  • Table: Downer EDI Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Railway Equipment Manufacturing and Repair Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Railway Equipment Manufacturing and Repair Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Freight Rail
  • Trains used for transporting goods or cargo. Freight rail carries a variety of goods and cargo.
  • Rolling Stock
  • Rail units that run on rail tracks, including locomotives and carriages.
  • Tonne Kilometres
  • Tonne of freight multiplied by the distance (kilometres) travelled.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Railway Equipment Manufacturing and Repair market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Railway Equipment Manufacturing and Repair:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Railway Equipment Manufacturing and Repair market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Railway Equipment Manufacturing and Repair, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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