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25 March 2010

The Railway Supply Industry: Where Next?. 25 March 2010. Jeremy Candfield Director General. The Railway Industry Association - RIA. The trade association for the UK railway supply industry Representing and promoting the industry’s interests to Government and major clients

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25 March 2010

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  1. The Railway Supply Industry: Where Next? 25 March 2010 Jeremy Candfield Director General Railway Industry Association

  2. The Railway Industry Association - RIA • The trade association for the UK railway supply industry • Representing and promoting the industry’s interests to Government and major clients • c160 member companies • Who supply national rail, LU, light rail, exports • Includes great bulk of sector by turnover • And who are very diverse: Railway Industry Association

  3. RIA Members include: • Passenger train manufacturers/systems integrators • All major signalling and most major telecomms firms • All Track Renewal Contractors • ROSCOs • Major suppliers and other contractors • Component manufacturers • Numerous consultants and specialist service providers • Companies of all sizes: Railway Industry Association

  4. RIA Members – February 2010 Railway Industry Association

  5. RIA • Works closely with DfT, NR and UKTI, plus ORR, RSSB etc • And increasingly with BIS and LUL • Seeking to identify and foster areas of common interest, i.e. constructive engagement e.g: • Founded and promotes the Value Improvement Programme to drive out waste • Major contributor to TSAG • Lead promoter of the National Skills Academy for Railway Engineering, just approved • Does not claim that anyone has a right to workload Railway Industry Association

  6. While supply companies • Deliver virtually all of Network Rail’s renewals and enhancement programmes • Deliver all new rolling stock, most refurbishment, much r/s maintenance • Are significant exporters, especially of consultancy, high-tech components, contracting • Employ 40% of the railway industry labour force: Railway Industry Association

  7. Size of the UK Rail IndustryEmployees, estimated (HS2Cmnd Paper) So supply is about 40% of the industry Railway Industry Association

  8. Members: • Are competitive, used to working in the world’s most open railway market • Are often in international ownership • Want to compete vigorously against more consistent demand allowing them to offer best value for money to their clients • But instead experience the damage caused by irregular and unpredictable ordering: • inhibits investment and training • forces inefficient use of resources and waste Railway Industry Association

  9. Passenger rolling stock orders placed Railways Act 1993 First franchises let - 1996 EMU/DMU orders for mainline railways by BR/TOCs Railway Industry Association

  10. Future Promised Train Builds:  200 DMUs 1300 HLOS Thameslink IEP /? delayed ? leaving supply chains in a vacuum Railway Industry Association

  11. NR Electrification Chart NR presentation to RIA contractors January 2010 Railway Industry Association

  12. Risk and Waste • Supplier MDs are paid to use their professional experience to make judgement calls against uncertainty • They expect to compete and do so • But it is pointless, and very expensive, to make them take risks that are controlled by the client • And they see much waste in the system • Both sides need, at least, more dialogue, and closer understanding of how each impacts on the other Railway Industry Association

  13. Welcome recognition in the HS2 Command Paper Ch 12 • “Government needs to start working now to secure a strong and competitive supply chain” • Working with the supply chain to enable companies to plan ahead • A supply chain forum • An industrial strategy • Procurement that works for Government and industry alike • Adoption of the Sustainable Development principles Railway Industry Association

  14. Potentially very important • To securing • Best value • Optimised life cycle cost, including maintenance • A sustainable industry • Continuing to create value in the economy • And enhanced exports potential from a stronger base. But we have a long way to go! Railway Industry Association

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