Railroad Equipment

By Staff -- Logistics Management, 2/1/1999

Average prices for railroad equipment held steady in 1998 after falling 1.7% in 1997. As for the pricing outlook for 1999, manufacturers of rail equipment are under severe cost pressures, with direct manufacturing costs eating up $75 of every $100 worth of product sold. Furthermore, demand for railcars appears to be weakening and carbon steel prices (a major materials input) are still retreating. So any future price hikes for rail equipment should be minimal.

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