Industry Analysis & Industry Trends
The Railway Equipment Manufacturing industry's lifeblood is long-term rolling stock replacement contracts. This creates revenue volatility and means that industry trends often go against underlying passenger demand or economic circumstances. Over the five years through 2012-13, industry revenue is expected to fall by 5.5% per annum to £889.8 million, despite double-digit growth in 2008-09. Major companies in the industry are globalised manufacturers. Through diverse globalised operations they maintain production capacity and cash flow, despite contractual lulls and booms. Smaller domestic manufacturers hedge their bets, operating in other industries and supplying for both manufacturers and maintainers of rolling stock.
Supply of rail services has lagged behind demand... purchase to read more
Industry Report - Industry Locations Chapter
The East Midlands dominates in this industry as Bombardier, the only remaining train manufacturer, operates manufacturing facilities in Derby. Bombardier also makes parts and some signalling equipment out of its Derby factory. As a result, East Midlands accounts for almost 60% of industry revenue. London is also a major region at 11.8% of revenue, which is unusual for the manufacturing sector. This is because London is a major rail transport region and hub, accounting for about 70% of all urban rail journeys. The network has two urban rail systems, the Underground (commonly known as the tube) and the Overground network. Many part manufacturers tend to locate their facilities in the region to be close to the market... purchase to read more