Full steam ahead: Rising trade will increase demand for industry services

Over the past five years, the state's economic recovery has been strong, and its population has continued to increase. Moreover, the volume of trade coming into and out of the state has steadily grown, which should have led to strong growth in demand for Rail Transportation industry services in California. Instead, however, the industry's revenue has grown only marginally. Although demand for services has remained strong, drastic declines in oil prices have resulted in lower revenue from fuel surcharges during the current period. Over the five years to 2022, IBISWorld forecasts that revenue for the Rail Transportation industry in California will grow. During the five-year period, the state's economy is expected to continue growing alongside population...read more.

Industry Statistics & Market Size
Revenue
$4bn
Annual Growth 12-17
0.7%
Forecast Growth 17-22
Profit
Employment
9,216
Businesses
39
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Industry Threats & Opportunities

  • Although demand for services has remained strong, drastic declines in oil prices have resulted in lower revenue from fuel surcharges
  • The only two years of declining industry revenue coincide with large declines in fuel costs
  • The outlook for rail transportation in California is much improved
  • Industry Report - Industry Investment Chapter

    This industry has a high level of capital intensity, largely because operators must develop and maintain their own infrastructure. With an increasing trend toward efficiency, there are also investments being made for more-efficient engines. The capital intensity of this industry is projected to have decreased slightly over the five years to 2017 as labor costs rose. Over the next five years, however, capital investments are expected to increase as expansion becomes necessary to meet growing demand.In regards to capital intensity and labor, for every dollar spent on labor, $0.40 is spent on capital. Wage expenses are significant because capital assets must be constantly maintained. Furthermore, trained professionals are needed to operate trains and perform corporate duties. Thi...purchase to read more.

    Additional Insights for the Rail Transportation in California Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Rail Transportation in California Industry are

  • Automation
  • Ability to effectively manage risk
  • Production of premium goods/services
  • IBISWorld analysts also discuss how external factors such as Price of Gasoline in California and Total Exports from California in the Rail Transportation in California industry impact industry performance..

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    What is the Rail Transportation in California Industry?

    The Rail Transportation industry comprises companies that operate railroads across the United States. This includes large railroads (Class 1 railroads) and regional and local line-haul railroads that carry freight and passengers. This industry does not include scenic and sightseeing rail transportation, street railroads, commuter rail or rapid transit.

    Industry Products
  • Intermodal
  • Bulk freight
  • Passenger services
  • Other services
  • Industry Activities
  • Operating line-haul railroads
  • Operating short line railroads
  • Operating intercity passenger trains
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Price of Gasoline in California
  • Total Exports from California
  • Demand from chemical manufacturing
  • Total trade value

  • Current Performance
  • Rising trade
  • The effects of lower crude oil prices
  • Operational trends
  • Chart: Revenue Growth

  • Industry Outlook
  • High-speed rail and Hyperloop
  • Table: Rail Transportation in California Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Rail Transportation in California Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Agriculture, Forestry, Fishing and Hunting
  • Mining
  • Coal Mining
  • Manufacturing
  • Petrochemical Manufacturing
  • Car & Automobile Manufacturing
  • Coal & Natural Gas Power
  • Consumers

  • Key Selling Industries
  • Petroleum Refining
  • Rail Maintenance Services
  • Train, Subway & Transit Car Manufacturing

  • Products & Services
  • Intermodal
  • Bulk freight
  • Passenger services
  • Other services
  • Chart: Rail Transportation in California Industry Products and Services Segmentation

  • Major Markets
  • Other
  • Industrial commodities
  • Food and kindred products
  • Agricultural commodities
  • Chemical products
  • Consumers
  • Chart: Major Market Segmentation for the Rail Transportation in California Industry

  • Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesRent, depreciation and other
  • Chart: Cost Structure Benchmarking – Sector vs Rail Transportation in California

  • Basis of Competition
  • Internal competition.
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Rail Transportation in California Industry

  • Burlington Northern Santa Fe CorporationUnion Pacific CorporationGenesee & WyomingWatco Companies LLC
  • Table: Burlington Northern Santa Fe Corporation - financial performance
  • Table: Union Pacific Corporation - financial performance
  • Table: Genesee & Wyoming - financial performance
  • Table: Watco Companies LLC - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Rail Transportation in California 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 Rail Transportation in California Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Price of Gasoline in California (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Bulk Freight
  • Unpackaged commodity cargo (liquid or dry) transported in large quantities.
  • Class 1 Railroad
  • A railroad with annual operating revenue of $453.0 million or more.
  • Fuel Surcharge
  • An additional charge issued by transportation operators to cover the increased cost of fuel. It is charged in addition to the freight rate.
  • Intermodal Transport
  • The transportation of containerized goods that can roll on and off rail and ship carriers straight onto the road.
  • Line-Haul Railroad
  • A railroad that transports passengers or cargo over a long distance within a rail network.
  • Rolling Stock
  • All vehicles that move on a railway.
  • Why buy this report?

    The Rail Transportation in California Industry Research Report measures market size, analyses current and future trends, and provides an indication of market share for the industry’s largest companies. IBISWorld’s collection of industry market research reports gives you insightful, up-to-date information on the supply chains, economic drivers, and key buyers and markets for hundreds of industries.

    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 Rail Transportation in California:
    • 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 Rail Transportation in California 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 Rail Transportation in California, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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