Wages of Overproduction 3

DMS dmschanoes at earthlink.net
Tue Jul 22 10:45:29 MDT 2003


>From Railway Age:

"The next upward cycle"

'The severly cyclical nature of the railroad supply business
has never been easy to deal with, especially when the
roller-coaster ride is accelerating downhill, as in the
past two years......

...What are suppliers thinking? Paul Golden, president of
Wabtec's Freight Car Group...says, "I'm would argue that
we are not out of the woods yet, and I'm concerned about
the order pattern....So the key market drivers of the
freight car side certainly haven't held up...Railroad capital
spending hasn't gone up substantially year after year
[since 2000], and they're still investing an extraordinary
amount of 'steel in the ground.'"

...."The only thing long-term that will moderate the peaks
and valleys [of the business cycle] is further consolidation
in the OEM side, and real capacity elimination. ....there's
an awful lot of capacity that sits idle for periods of
time and forces unhealthy price competition to keep plants
busy" '

Reads like Vol 3 doesn't it?

Full at:  www.railwayage.com

dms



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