Off track: Strong import competition is expected to lead to industry volatility

Over the five years to 2018, Canada's Train, Subway and Transit Car Manufacturing industry is expected to experience significant volatility, which has largely been driven by cyclical purchases of industry goods and sharp declines in commodity prices. Ultimately, the industry expanded during the five-year period, despite diminishing exports due to a regulatory landscape that instigated a litany of capital expenditures. Industry performance depends on the ability of manufacturers to earn production contracts. Domestic manufacturing has increasingly relocated to other countries over the past decade, which has negatively affected industry exports...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 13-18
10.1%
Forecast Growth 18-23
Profit
Employment
4,824
Businesses
37

Industry Threats & Opportunities

  • The industry experienced significant growth due to the length of manufacturing contracts and new regulatory measures
  • The Canadian industry exhibits a large trade deficit for industry products
  • Businesses that rely heavily on trade will likely continue to use rail services
  • Industry Report - Industry Key Buyers Chapter

    The Train, Subway and Transit Car Manufacturing industry in Canada is moderately concentrated. In 2018, the top four players in the industry are expected to account for 50.7% of total industry revenue. Due to the capital requirements of the industry, in addition to cost consolidation efforts which produce high barriers to entry, enterprise formation has been subdued. The industry’s barriers to entry are driven up by the extensive investment required for plants and equipment. As a result, large industry operators are expected to experience the most success due to cost synergies, such as economies of scale whereby they can effectively increase production to meet new cyclical demand. Add...purchase to read more.

    Additional Insights for the Train, Subway & Transit Car Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Train, Subway & Transit Car Manufacturing Industry are

  • Must comply with required product standards
  • Provision of superior after sales service
  • Proximity to key markets
  • IBISWorld analysts also discuss how external factors such as Aggregate private investment and Canadian effective exchange rate index in the Train, Subway & Transit Car Manufacturing industry impact industry performance..

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    What's in this report

    What is the Train, Subway & Transit Car Manufacturing Industry?

    This industry primarily manufactures and rebuilds locomotives and railroad cars of any type or gauge, including frames and parts. This industry includes manufacturing rapid transit cars and special-purpose self-propelled railroad equipment, such as rail layers, ballast distributors, rail tamping equipment and other railway track maintenance equipment.

    Industry Products
  • New locomotives
  • New passenger train cars
  • Rebuilt trains, cars and other
  • New freight train cars
  • Industry Activities
  • Rebuilding of locomotives
  • Manufacturing railroad cars and equipment
  • transit cars and equipment
  • railway track maintenance equipment
  • Manufacturing railway and transit equipment
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Aggregate private investment
  • Canadian effective exchange rate index
  • Demand from rail transportation
  • Industrial capacity utilization
  • Total trade value

  • Current Performance
  • Volatile demand, government funding
  • International trade
  • Falling input costs, profit growth
  • Chart: Revenue Growth

  • Industry Outlook
  • Passenger and freight demand
  • Trade and competition
  • Profit stabilizes
  • Table: Train, Subway & Transit Car Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Train, Subway & Transit Car Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Rail Transportation in Canada
  • Public Transportation in Canada
  • Airport Operations in Canada

  • Key Selling Industries
  • Ball Bearing Manufacturing in Canada
  • Electrical Equipment Manufacturing in Canada
  • Ferrous Metal Foundry Products in Canada
  • Iron & Steel Manufacturing in Canada
  • Screw, Nut & Bolt Manufacturing in Canada
  • Train, Subway & Transit Car Manufacturing in Canada

  • Products & Services
  • New freight train cars
  • Rebuilt trains, cars and other
  • New locomotives
  • New passenger train cars
  • Chart: Train, Subway & Transit Car Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Mainline rail companies
  • Government
  • Regional rail companies
  • Exports
  • Chart: Major Market Segmentation for the Train, Subway & Transit Car Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesDepreciation and other expenses
  • Chart: Cost Structure Benchmarking – Sector vs Train, Subway & Transit Car Manufacturing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Train, Subway & Transit Car Manufacturing Industry

  • Industry Globalization
    Bombardier Inc., National Steel Car,
  • Table: Bombardier Inc. - financial performance
  • Table: National Steel Car - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Train, Subway & Transit Car Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Train, Subway & Transit Car Manufacturing Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • World price of crude oil (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Backlog
  • The orders that are currently unfulfilled by manufacturers. In industries where the manufacturing process takes place over a long period, the level of backlog signals future income streams.
  • Normal Trade Relations (Ntr)
  • The trade status of a country that is characterized by low tariffs and limited restrictions.
  • Positive Train Control (Ptc)
  • Systems that have been mandated to be included in trains to help reduce collision risk.
  • Rolling Stock
  • The vehicles that travel on rails, including railcars, locomotives, subway cars and trolleys.
  • What Our Customers Say

    Why buy this report?

    The Train, Subway & Transit Car Manufacturing market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Train, Subway & Transit Car Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Train, Subway & Transit Car Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Train, Subway & Transit Car Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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