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    Railroad Equipment Manufacturing Industry Profile

    Report Page Length: 10-12
    Last Quarterly Update: 4/26/2021
    SIC Codes: 3743
    NAICS Codes: 336510
    Chapters Include:
    Industry Overview Trends & Challenges Industry Forecast
    Quarterly Industry Update Call Prep Questions Website & Media Links
    Business Challenges Financial Information Glossary & Acronyms
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    Excerpt from Railroad Equipment Manufacturing Industry Profile

    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 Greenbrier, Progress Rail, Trinity Rail (Trinity Industries Subsidiary), and Wabtec (all based in the US), along with Alstom (France), Bombardier (Canada), CRRC Corporation (China), Hitachi (Japan), and Siemens (Germany).

    Worldwide, the railroad equipment manufacturing industry generates about $125 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 about 230 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $13 billion.

    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. The US industry is highly concentrated: the 50 largest companies account for more than 95% of industry revenue.

    Imported railroad equipment represents about 10% of the US market. Major sources for imports include China, Mexico, Japan, and Canada. Exports of US railroad equipment, which go primarily to Mexico and ...

     
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