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The industry is growing and the Government is investing in new technology to ensure efficiencies and needs are met from freight and passengers alike. Although demand from passenger rail travel may have declined recently due to COVID, this is expected to turn around and increase by 19% in the coming 6 years. The Government is investing due to increase demand, efficiencies and safety reasons. With some protection offered from rail product imports, the rail industry is seen as a major growth sector within manufacturing. And we’ve highlighted the three high-tech machines from GEMINIS that can support rail product manufacturing.
The Australian Rail industry employs a large number of people, over 142,000 people directly and indirectly. Australian rail is the sixth largest network in the world. Rail in Australia contributes over $26 billion to the national economy, 1.6% of GDP.
Additionally, Australia’s passenger numbers are estimated to grow by 19 per cent, and rail freight by 26 per cent, by 2026.
The size and scale of this industry calls for focus and investment by the Government.
More than $110 billion in rail construction investment expected during the 2020s.
The smart rail route map outlines the investment and focus on this industry and in particular the need to keep up with technology, presenting benefits for local manufacturers. This is outlined in the Smart Rail Route Map.
New rail projects are under construction across Australian cities. Increasing traffic congestion is increasing demand (although COVID has impacted this of late), additionally, the push to reduce the number of transport trucks on our roads is also driving this investment.
While in the past rail manufacturers “have struggled against import penetration of rail locomotives and wagons over the past five years, contributing to a decline in demand for industry products. Rising demand for high-tech rail locomotives and carriages and increased focus on repair and maintenance services, largely from state Governments, has partly offset this trend” (IBIS Report., IBISWorld Industry Report C2393 Railway Equipment Manufacturing and Repair in Australia,. May 2019, p. 2).
Additionally, “several industry products are likely to remain protected from import penetration, due to both their high-tech nature and government legislation. Domestic operators are anticipated to retain their near-monopoly on high value-added components, due to Australia’s strict quality and safety regulations”. (IBIS Report., IBISWorld Industry Report C2393 Railway Equipment Manufacturing and Repair in Australia,. May 2019, p. 5).
Government is focused on the benefits of rail freight, The Australian Railway Association states,”Rail is a smarter economic choice for freight haulage for Australia. One freight train from Melbourne to Sydney replaces 110 semi-trailers travelling on the road”.
The Australian Railway Association also claims rail is up to 9 times safer than road freight.
If your business is within these sectors or it’s a viable pivot for your business, then the GEMINIS range of specialised lathes for the Rail sector is worth considering.
These specialised lathes machine axles, wheelsets and wheels.
Whether you’re after a machine, spare part, power tool, or need to book a service call Headland will help you find the right solution in a timely manner.
Fill out the form below and the relevant expert will be in touch with you shortly.
