Rail Industry offers growth opportunity for manufacturers.
Press Release Summary:
According to Dr. Chris Kuehl, economic analyst for FMA, demand for food commodities has been and will continue to be boon for rail sector. In response to demand for cleaner burning coal, major freight rail operations are discussing expansion and need to buy more rail cars, specialized yard equipment, and even rail itself. Rise of gas prices also results in renewed interest in urban transportation alternatives, and that usually means some kind of light rail system.
Original Press Release:
Rail Offers Surprising Growth Opportunity In Transportation Sector for Manufacturers
FMA News Release
April 24, 2008. An economist for the fabricating and metalworking industry has sifted through the current financial rubble of surging oil prices and transportation sector woes to find a major growth opportunity for manufacturers - the rail business.
"Although in general the transportation arena has been hit hard by the economic downturn and many traditional areas are in some distress, one surprise in this sector is the rail industry with a solid expectation for growth given the realities of fuel costs," says Dr. Chris Kuehl, economic analyst for the Fabricators & Manufacturers Association, International (FMA). Kuehl made his comments in the current FMA economic update newsletter Fabrinomics.
"The surging demand for food commodities has been and will continue to be a boon for the rail sector. So is the demand for cleaner burning coal," Kuehl says. "In response, the major freight rail operations are discussing expansion and the need to buy more rail cars, specialized yard equipment and even the rail itself.
"There also is renewed interest in providing urban transportation alternatives, and that usually means some kind of light rail system. The rise of gas prices to current levels begins to make mass transit more popular and many communities are rushing to 'get on board'," he adds.
For companies involved in metal fabricating and related industries, these trends "provide some dramatic new opportunities for rail and other infrastructure needs as well as the machines and carriages providing the transportation," Kuehl says. "By all accounts, this will be a field that grows exponentially in the years to come."
Dr. Kuehl also appeared on Better Process Podcast recently with an interview to cover this subject.
Contact
Patricia Lee
Communications Director,
Fabricators and Manufacturers Association, International (FMA)
patl@fmanet.org
+1-815-227-8286
