Back on track: Continued economic growth is anticipated to drive industry demand

Over the five years to 2018, the Railroad Car Rental and Leasing industry has expanded alongside the broader economy. Industry operators own the majority of railcars in the United States; therefore, an increase in demand for railcars typically leads to a jump in demand for industry services. As the economy recovered from the recession that constrained the previous five-year period, industrial, construction and trade activity began to improve, bolstering demand for raw materials and commodities. Consequently, rail freight volumes climbed and demand for railcars reemerged. Over the five years to 2023, continued economic growth and increasing shale oil and gas production are anticipated to continue driving demand for railcar leases...purchase to read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • Industrial, construction and trade activity has improved, bolstering industry performance
  • A downturn in the trucking sector also benefited the industry
  • Operators will benefit from the growing competitiveness of railroads over other sectors
  • Industry Report - Industry Investment Chapter

    Overall, the Railroad Car Rental and Leasing industry has a high level of capital intensity; for every $1.00 spent on wages, industry operators will spend about $5.31 on capital investments. Capital intensity is high because operators are required to purchase expensive railcars and locomotives. In addition to initial purchases, operators must consistently replace existing equipment with newer models as products wear down and regulatory requirements increase. Altogether, lessors own over half of the nation's railroad car fleet and as a result, account for large share of capital investment made into the nation's railroad industry. The top five industry operators alone account for about 500,000 railcars. Con...purchase to read more.

    Additional Insights for the Railroad Car Rental & Leasing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Railroad Car Rental & Leasing Industry are

  • Ability to alter goods and services produced in favor of market conditions
  • Prompt delivery to market
  • Superior financial management and debt management
  • IBISWorld analysts also discuss how external factors such as Freight transportation services index and Industrial production index in the Railroad Car Rental & Leasing industry impact industry performance..

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    What's in this report

    What is the Railroad Car Rental & Leasing Industry?

    Companies operating in this industry rent or lease railroad cars to customers who move freight across railroads. Renting or leasing railcars enables downstream customers to avoid incurring the capital costs of purchasing a railcar from a manufacturer.

    Industry Products
  • Hopper cars
  • Tank cars
  • Industry Activities
  • Railroad car rental
  • Railroad car leasing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Freight transportation services index
  • Industrial production index
  • US oil and gas production index
  • External competition for the Rail Transportation industry
  • Total trade value

  • Current Performance
  • Industry expansion
  • Other trends
  • Chart: Revenue Growth

  • Industry Outlook
  • Demand factors
  • Other trends
  • Table: Railroad Car Rental & Leasing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Railroad Car Rental & Leasing Industry Lifecycle vs The Economy

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

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

  • Products & Services
  • Hopper cars
  • Tank cars
  • Other
  • Chart: Railroad Car Rental & Leasing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Refining, petroleum and chemical industries
  • Mining and aggregates industries and users
  • Railroads and transport industries
  • Agricultural and food industries
  • Other
  • Chart: Major Market Segmentation for the Railroad Car Rental & Leasing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases and depreciation
  • Labor
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Railroad Car Rental & Leasing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Railroad Car Rental & Leasing Industry

  • Industry Globalization
    Wells Fargo Rail, GATX Corporation, Trinity Industries Inc., Union Tank Car Company, CIT Group Inc.,
  • Table: Wells Fargo Rail - financial performance
  • Table: GATX Corporation - financial performance
  • Table: Trinity Industries Inc. - financial performance
  • Table: Union Tank Car Company - financial performance
  • Table: CIT Group Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Railroad Car Rental & Leasing 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 Railroad Car Rental & Leasing Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • US oil and gas production index (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Class 1 Railroad
  • A railroad with operating revenue of at least $250.0 million.
  • Locomotive
  • A self-propelled vehicle that runs on rails and is used for moving railroad cars.
  • Operating Lease
  • A type of lease in which the lessee only uses the asset for some of the asset's life.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Railroad Car Rental & Leasing Industry Research Report contains up-to-date data and analysis, allowing you to identify the strengths and potential weaknesses of major companies in the industry. Build your credibility with clients and prospects by sharing insights into the current and emerging trends driving their industry. Our market research gives you the tools to win new business and keep existing clients.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
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    This report on Railroad Car Rental & Leasing:
    • 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 Railroad Car Rental & Leasing 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 Railroad Car Rental & Leasing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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