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Railcar Assemblies on the Upswing

Thursday, August 4, 2011

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America will be working on the railcars, if a new market report on railcar assemblies holds up.

Despite an “evaporation” of 900 cars from rail-car backlogs and a 38.7 percent hike in car assemblies in the second quarter, the total industry backlog rose from 51,900 units on March 31 to 57,300 units on June 30, according to Economic Planning Associates Inc.’s (EPA) quarterly “Rail Car Overview” report.

 CRCR

 CRCR

Railcar production is on track to increase through 2016.

The mid-year backlog level is two-and-one-half times higher than the beginning year level and represents 5.4 quarters of deliveries at current production rates, the report states.

Car builders “can expect further orders as we proceed through this year and into 2012,” the report said. “Already in the third quarter, a major leasing company has ordered 5,000 tank cars and hoppers from a number of builders. At the same time, CSX has reported that it increased capital spending $200 million to accommodate the growing coal export market by investing in facilities, locomotives and additional freight cars.”

Based on current backlogs and anticipated gains for various cars, the report project assemblies of 37,900 cars this year followed by 48,300 cars next year and increasing production through 2016.

   

Tagged categories: Construction; Economy; Market forecasts; Railcars

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