A recent survey conducted by Savanta on behalf of the Railway Industry Association (RIA) has revealed that while there have been some positive developments, the outlook for the UK rail supply industry remains cautious.
Key findings from the survey include:
- Contraction Concerns: Nearly half (48%) of respondents believe the industry will contract in the next year.
- Business Growth: 46% of respondents anticipate business growth, while 29% expect contraction.
- Work Hiatus: 83% of respondents anticipate a hiatus in rail work due to factors like rail reform and uncertainty surrounding major projects.
- Strategic Responses: Many businesses plan to respond to the uncertain climate by freezing or slowing recruitment, prioritising international work, and pausing or slowing domestic expansion plans.
Commenting on the survey, Darren Caplan, Chief Executive of the Railway Industry Association, said: “The conclusions of the survey reflect a second year of rail supply leaders being concerned about the outlook for the wider UK rail market and anxiety about their own business’s prospects more specifically.
“Over 80% forecast a hiatus in work in the year ahead, with a detailed timeline for rail reform or firm commitments for the delivery of major projects still awaited. This uncertainty adversely impacts recruitment, expansion plans and suppliers, who will seek refuge in other sectors and overseas markets if more confidence fails to return.
“The results from the survey confirm RIA’s longstanding calls for more certainty from Government on which national, regional and local rail work – both track and train – it wants the railway industry to deliver in the months ahead.
“Ahead of RIA’s Annual Conference in London on 6-7 November, we call on the Government to set out a clear roadmap for rail investment as soon as possible, including plans for rail enhancements and rolling stock procurement and refurbishment. Visibility of these plans would provide rail suppliers with the certainty they need, ultimately helping to deliver the rail services customers – both passengers and freight – want and the value for money taxpayers expect. We hope the 2025 survey will show an uplift in confidence, following the Budget on 30 October this year, which seemed more positive about the prospects for both railway infrastructure and rolling stock pipelines.”
The RIA Annual Conference, taking place on November 6-7, 2024, will provide a platform for industry leaders to discuss these challenges and explore opportunities for the future of the rail sector.
