Railroad Equipment Manufacturing
First Research, April 2013, Pages: 10
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Brief Excerpt from Industry Overview Chapter:
Companies in this industry manufacture locomotives, freight and passenger rail cars, and brakes and other parts and equipment used in railroad operations. Major companies include American Railcar Industries, Electro-Motive Diesel (EMD), GE, Greenbrier, Trinity Industries and Westinghouse Air Brake Technologies (all based in the US), along with ALSTOM (France), Bombardier (Canada), China CNR Corporation and CSR Corporation (China), NIPPON SHARYO (Japan), and Siemens (Germany).
Worldwide, the railroad equipment manufacturing industry generates about $50 billion in revenue. Leading countries for production of railroad equipment include Canada, China, France, Germany, Japan, and the US.
The US railroad equipment manufacturing industry includes more than 150 companies with combined annual revenue of about $13 billion and is expected to experience a high rate of growth over the next two years. Growth drivers include rising demand for freight and passenger transportation in emerging markets and domestic demand for transportation of energy-related commodities.
COMPETITIVE LANDSCAPE
Demand for freight rolling stock is driven by fuel prices, as high gas prices shift freight transport from trucks to rail. Demand for passenger rail rolling stock is driven by public investment in regional rail transportation. The profitability of individual companies depends on securing long-term sales contracts with railroad companies and leasing agencies. Large companies have advantages in manufacturing economies of scale. Small companies can compete effectively through consulting services and custom-building locomotive and passenger railcars.
Imported railroad equipment represents 10 percent of the US market. Major sources for imports include...
1. Industry Overview
2. Quarterly Industry Update
3. Business Challenges
4. Business Trends
5. Industry Opportunities
6. Call Preparation Questions
7. Financial Information
8. Industry Forecast
9. Web Links and Acronyms
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