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RIA periodically surveys its members to establish a detailed picture of the factors affecting their businesses in the railway supply industry. The resulting data is used to inform discussions with external bodies and help determine areas of future activity.
The most recent survey was undertaken in May 2008. A brief summary of the key findings follows, together with some charts showing trends in key indicators. The full report of the survey is sent to members who participated. |
May 2008 Survey - Summary
Optimism continues its rising trend across the supply industry, as above-average order books are reported for the first time in six years. However all sectors report a continued, extensive and mostly worsening skills shortage; some four-fifths of respondents report that their sector is affected by skills shortage. Moreover, in all sectors but one (TIP), labour availability is one of the leading constraints or the leading constraint on output. All engineering disciplines are affected – e.g. design, delivery, testing, project management, contracts management and computer programming - with the Signalling & Telecoms, Consulting and (lately) Rolling Stock sectors particularly badly affected.
Among other issues reported, a number of members are concerned at delays at bringing Network Rail projects to market. Concern also remains about imbalance in Network Rail contract terms, and about procurement against the lowest price rather than the best value tender. Substantial increases in raw material and energy costs are putting pressure on margins, despite some increases in onward prices to clients. Overseas markets are still seen as part of the solution to the skills shortage (recruitment and outsourcing) as well as a target for exports contracts, with many respondents planning to begin exporting.
| RIA Business Survey - May 08: Time Series Charts |
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