Full steam ahead: Increased economic activity and federal funding have bolstered revenue

The Railroad Track Construction industry has at times benefited from increasing government investment and public-private partnerships over the past five years. Recent slowdowns in rail freight transportation, a major market for industry operators, have constrained federal funding for new transportation programs and thus have also slowed revenue growth. At times, a booming energy sector benefited this industry by increasing demand for transportation systems needed to connect oil rigs and gas fields to their downstream markets...read more.

Industry Statistics & Market Size
Revenue
$7bn
Annual Growth 11-16
6.2%
Forecast Growth 16-21
Profit
Employment
18,121
Businesses
537
What Our Customers Say

Industry Threats & Opportunities

  • Rising government investment in infrastructure will benefit the industry
  • A boom in the oil and gas sector has increased demand for rail transportation
  • Increased passenger rail use, as well as the development of high-speed rail systems, will aid the industry
  • Industry Report - Starting a New Business Chapter

    The Railroad Track Construction industry has moderate barriers to entry. The industry requires a substantial amount of capital investment in machinery and equipment, used for various construction tasks such as digging through the earth. Furthermore, technological change and federal safety regulations limit prospective operators as well. The changing requirements for track safety and the technology that comes with the new requirements create a more challenging environment because firms must stay vigilant and have strict safety measures. While the industry does receive a substantial amount of government assistance, the assistance does not specifically help new entrants. The grants and tax breaks provided by the federal government, however, does encourage industry growth...purchase to read more.

    Additional Insights for the Railroad Track Construction Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Railroad Track Construction Industry are

  • Economies of scale
  • Market research
  • Having a network of suppliers
  • IBISWorld analysts also discuss how external factors such as Freight transportation services index and External competition for the Rail Transportation industry in the Railroad Track Construction industry impact industry performance..

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    What is the Railroad Track Construction Industry?

    This industry constructs railway track, railway ties, bedding and other infrastructure related to railroads. Contractors perform new work, reconstruction and repairs. This industry also includes construction management firms and special trade contractors that construct rail track and transit systems.

    Industry Products
  • New track construction
  • Track additions
  • Track maintenance
  • Industry Activities
  • New railroad track construction
  • Railroad track repair and maintenance
  • 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
  • External competition for the Rail Transportation industry
  • Federal funding for transportation
  • Total exports
  • Total imports
  • World price of steel

  • Current Performance
  • Increasing consumer demand
  • Increasing industrial demand
  • Lack of consensus
  • Chart: Revenue Growth

  • Industry Outlook
  • Demand increases
  • On the right track
  • Table: Railroad Track Construction Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Railroad Track Construction Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Stone Mining
  • Structural Metal Product Manufacturing
  • Construction & Mining Equipment Wholesaling
  • Industrial Machinery & Equipment Wholesaling
  • Aircraft, Marine & Railroad Transportation Equipment Wholesaling

  • Key Selling Industries
  • Rail Transportation

  • Products & Services
  • New track construction
  • Track maintenance
  • Track additions
  • Chart: Railroad Track Construction Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Private sector
  • State and local government
  • Federal government
  • Chart: Major Market Segmentation for the Railroad Track Construction Industry

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

  • Basis of Competition
  • External competition
  • Internal competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Railroad Track Construction Industry

  • Industry Globalization
    Granite Construction Inc.Kiewit Corporation
  • Table: Granite Construction Inc. - financial performance
  • Table: Kiewit Corporation - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Railroad Track Construction 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 Track Construction Industry
    Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • Freight transportation services index (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Ballast
  • A mixture of crushed stone that forms the track bed upon which the railroad ties are laid
  • Railroad Ties
  • A rectangular support for the rails in railroad tracks
  • Subgrade
  • Also called the formation level, the subgrade is the native material underneath a constructed road, pavement or railway
  • Why buy this report?

    IBISWorld’s Railroad Track Construction 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
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Railroad Track Construction:
    • 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 Track Construction 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 Track Construction, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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