Industry Analysis & Industry Trends
The Railway Equipment Manufacturing and Repair industry has faced a difficult five years, as the end of the mining investment boom negatively affected industry revenue. Increased government spending on passenger transport projects has partially offset declines in mining investment. Over the five years through 2016-17, industry revenue is expected to decline at a compound annual rate of 3.4%, to total $2.6 billion.
Industry revenue fell over the three years through 2013-14 due to slowing investment in railways by the mining sector. Furthermore, the total amount of industry-related revenue generated in Australia has declined as industry firms have offshored local manufacturing operations... purchase to read more
Industry Report - Starting a New Business Chapter
The relatively small size of the domestic market is 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 effectively against international competitors that are able to spread these costs over larger markets and more units. As a result, any new large industry 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... purchase to read more