Railroad Equipment Manufacturing
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, GE, Greenbrier, Progress Rail Locomotive, Trinity Industries, and Westinghouse Air Brake Technologies (all based in the US), along with ALSTOM (France), Bombardier (Canada), CRRC Corporation (China), NIPPON SHARYO (Japan), and Siemens (Germany).
Worldwide, the railroad equipment manufacturing industry generates about $130 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 165 companies with combined annual revenue of about $16 billion.
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 5% 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 Canada, account for more than 15% of US production.
Products, Operations & Technology
Major products are new and rebuilt locomotives; new and rebuilt freight, passenger, street, and rapid-transit cars; and railroad parts and accessories.
Sales & Marketing
Finance & Regulation
Regional & International Issues
Also includes the following chapters:
Quarterly Industry Update
Trends and Opportunities
Call Preparation Questions
Glossary of Acronyms