On track: The industry will grow as demand rises and legislation drives replacement of older rail cars

Over the five years to 2017, the Train, Subway and Transit Car Manufacturing industry in Canada is expected to experience significant volatility; however, the industry has ultimately expanded over the five-year period, despite diminishing exports and downward demand, as rising demand from rail transportation promoted sporadic periods of significant revenue growth. Over the five years to 2022, the Train, Subway and Transit Car Manufacturing industry in Canada is forecast to continue to grow as demand from passenger rail is forecast to improve and commodity prices are anticipated to recover...read more.

Industry Statistics & Market Size
Revenue
$3bn
Annual Growth 12-17
11.6%
Forecast Growth 17-22
Profit
Employment
4,330
Businesses
36

Industry Threats & Opportunities

  • Demand from passenger rail will improve as infrastructure investment grows to meet urbanization trends
  • The industry is heavily reliant on international trade activity
  • Government funding will likely increase in populated areas, but rural service is expected to decline
  • Industry Report - Industry Investment Chapter

    The Train, Subway and Transit Car Manufacturing industry in Canada is expected to have a medium level of capital intensity in 2017. While some of the industry’s largest operators spend significant amounts of money on machinery, plants and equipment, labour costs are also high. Labour expenses include the wages, salaries and benefits paid to builders, repairers and administrative staff. For every $1.00 spent on wages in 2017, industry operators are expected to spend $0.24 on capital expenditures.Capital intensity has increased during the five-year period. Mos...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-dollar 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 and rebuilt locomotives
  • Freight and passenger train cars
  • Rebuilt cars and rail maintenance equipment
  • Buses, trolleys and other components
  • 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-dollar effective exchange rate index
  • Demand from rail transportation
  • Industrial capacity utilization
  • Total trade value

  • Current Performance
  • Declining freight and stable passenger demand
  • 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 and rebuilt locomotives
  • Rebuilt cars and rail maintenance equipment
  • Freight and passenger train cars
  • Buses, trolleys and other components
  • Chart: Train, Subway & Transit Car Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Freight and transportation
  • Passenger transportation
  • 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, Wabtec Corp.,
  • Table: Bombardier Inc. - financial performance
  • Table: National Steel Car - financial performance
  • Table: Wabtec Corp. - 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 (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • World price of crude oil (2008-2022)

  • 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?

    IBISWorld’s Train, Subway & Transit Car Manufacturing market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    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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