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 is expected to generate about $106 billion by 2034, according to Market Research Future. Leading exporting countries for production of railroad equipment include China, the US, and Germany, according to The Observatory of Economic Complexity (OEC).

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 comes from Germany, the US, and the UK, according to The Observatory of Economic ...