American Railcar Industries Inc

Company report, featuring a PESTLE, Porters Five Forces, 5C, MOST, CATWOE and SWOT analysis

HomeTransport and LogisticsRailroadsAmerican Railcar Industries Inc

Introduction

This analysis of American Railcar Industries Inc is an integral part of our coverage of the 10,000 largest companies in the world. We are committed to providing the most current information possible, so we continually refresh our data on an accelerated timeline.

Premium members can access a full access to this study on American Railcar Industries Inc, including the SWOT analysis, PESTLE, 5C analysis, CATWOE, Porters Five Forces, MOST analysis, and a myriad of additional high value sections.

We identify potential new products and/or services, forecast future market trends, and prognosticate synergies between American Railcar Industries Inc and other organisations, apart from the analysis-driven sections.

Company Description

American Railcar Industries Inc is headquartered in St. Charles, Missouri, and founded in 1992. The company specializes in the design, engineering, manufacture and leasing of tank and hopper railcars, as well as their associated parts and components. The company services the energy, petrochemical and industrial markets, providing its customers with safe, reliable and cost-efficient products and services.

Industry Overview

American Railcar Industries Inc operates in the railcar manufacturing industry, which is estimated to be worth USD 7.3 billion in the US alone. The industry employs approximately 5,000 people in the US and Canada, with a further 2,000 employed in Europe. Employees in this industry are typically based in countries such as the US, Canada, Germany, France, Spain, and the UK. The industry is expected to enjoy a compound annual growth rate of 4.1% over the next 5 years.

Industry Classification

In terms of formal classification, Platform Executive has tagged American Railcar Industries Inc as a business operating within the Railroads industry.

1. Introduction
2. Company Description
3. Industry Overview
    3.1 Industry Classification
4. Intellectual Property
5. Major Products and Services
6. Key Competitors
7. Stakeholders
8. Value Proposition
9. Customers and Cohorts
10. Competitive Advantages
11. Market Trends
12. Key Performance Indicators
13. Financials (BETA)
    13.1 Highlights
    13.2. Board members
    13.3 Share Performance
    13.4 Income Statement
14. PESTLE Analysis
15. Potential Products/Services
16. Potential Synergies
17. Porter's Five Forces
18. CATWOE Analysis
19. SWOT Analysis
    19.1 Strengths
    19.2 Weaknesses
    19.3 Opportunities
    19.4 Threats
20. 5C Analysis
21. MOST Analysis
22. Innovation Scorecard
23. Appendices

Save to Library

Bookmark (0)

To login to your account click here.

Intellectual Property

Some of the Patents granted to, or relevant to the organisation include the following:

Patent Title: Railcar Couplers with Improved Features
Patent ID: US 10,735,631 B2
Date: June 23, 2020

Patent Title: System for Retracting a Coupler Knuckle and Method of Operation
Patent ID: US 10,730,804 B2
Date: June 16, 2020

Patent Title: Railcar Coupler
Patent ID: US 10,716,591 B2
Date: June 2, 2020

Patent Title: Railcar Body Coupler with Improved Features
Patent ID: US 10,713,921 B2
Date: May 26, 2020

Patent Title: Railcar Coupler
Patent ID: US 10,706,093 B2
Date: May 19, 2020

Patent Title: Railcar Coupler
Patent ID: US 10,699,549 B2
Date: May 12, 2020

Patent Title: Railcar Coupler Retention Mechanism
Patent ID: US 10,685,919 B2
Date: April 28, 2020

Patent Title: Railcar Coupler Retention Mechanism
Patent ID: US 10,680,983 B2
Date: April 21, 2020

Patent Title: Railcar Coupler Retention Mechanism
Patent ID: US 10,670,872 B2
Date: April 7, 2020

Patent Title: Railcar Coupler Retention Mechanism
Patent ID: US 10,669,719 B2
Date: April 7, 2020

Patent Title: Railcar Coupler Retention Mechanism
Patent ID: US 10,666,554 B2
Date: March 31, 2020

Major Products & Services

The main products and/or services commercialised by this business include the following:

Tank and hopper railcars
Boxcars
Covered hoppers
Gondolas
Flatcars
Intermodal railcars
Locomotive components
Repair and refurbishment services
Leasing services

Key Competitors

We have identified the following organisations as being key competitors:

Trinity Industries Inc
Greenbrier Companies Inc
GATX Corporation
The Berkshire Group
FreightCar America Inc
National Steel Car Ltd
Watco Companies, LLC
Marmon Group
Kansas City Southern Industries Inc
Genesee & Wyoming Inc

Unlock this SWOT analysis report

Each detailed study features a PESTLE, Porters Five Forces, 5C, MOST, CATWOE and an expert SWOT analysis, along with a myriad of other sections.

Premium members have FULL ACCESS to this content and approximately 10,000 similar competitive intelligence reports.

Premium membership is just $195 per month, with annual membership at $1,950 / seat.

UNLOCK CONTENT

Key Stakeholders

Stakeholders are individuals or groups who have an interest in a business and/or are affected by its actions.

These stakeholders can have different requirements and expectations from the business, which must be taken into account when making decisions.

By understanding their stakeholders’ requirements, a business can make informed decisions that benefit all involved.

Below is the list of internal and external stakeholders we have identified for this business:

1. Customers: American Railcar Industries Inc.’s customers are companies in the transportation, energy and industrial sectors for whom it manufactures, leases and services railcars.

2. Suppliers: American Railcar Industries Inc.’s suppliers provide raw materials and components necessary for the production of railcars.

3. Employees: American Railcar Industries Inc.’s employees are essential to the operations of the company.

4. Shareholders: American Railcar Industries Inc.’s shareholders are the ultimate owners of the company.

5. Government: American Railcar Industries Inc.’s operations are affected by the regulations and laws imposed by the government.

6. Financial Institutions: American Railcar Industries Inc.’s financial institutions provide the necessary financial services to the company.

7. Industry Partners: American Railcar Industries Inc.’s industry partners.

Value Proposition

A value proposition explains the unique value and/or benefits that an organisation provides to its customers, partners, stakeholders and the overall market. It outlines what makes a company like American Railcar Industries Inc different from its competitors, along with what it can offer that key competitors cannot.

A corporate value proposition can be used with the competitive advantages section of this report in order to better understand American Railcar Industries Inc and its position within the marketplace.

American Railcar Industries Inc. (ARI) provides a wide range of railcar products and services that support the transportation needs of businesses and consumers.

Competitive Advantages

Competitive advantages are unique attributes, strategies, resources, or capabilities that allow an organisation to outperform its competitors and achieve superior market position and profitability.

Competitive advantages for the business include the following:

High-Quality Manufacturing Capabilities: American Railcar Industries Inc. has the capabilities to manufacture railcars that meet and exceed industry standards for quality and performance. Its railcar manufacturing facilities are among the most modern in the industry and employ advanced technology and processes.

Experienced Management Team: American Railcar Industries Inc. is managed by an experienced team with a deep understanding of the railcar industry. Its management team has decades of combined experience in the railcar industry, providing it with the expertise to develop and maintain a competitive advantage.

Strategic Relationships: American Railcar Industries Inc. has established strong relationships with the major railroads, allowing it to gain access to the latest technology and resources. It also has strong relationships with suppliers, providing it with competitive pricing and access to the best materials.

Cost-Effective Solutions: American Railcar Industries Inc. is committed to providing cost-effective solutions to its customers. It has developed a number of efficient processes and strategies to reduce costs while maintaining quality.

Innovative Technology: American Railcar Industries Inc. employs innovative technologies to produce railcars that meet the highest standards. It has developed a number of unique solutions for producing railcars that are more efficient and cost-effective.

Customers & Cohorts

As part of this competitive intelligence study, we have identified the main customers of the organisation.

These include the following cohorts:

Private Railcar Owners
Private Railcar Operators
Freight Carriers
Railcar Manufacturers
Railroad Maintenance and Repair Companies
Government Agencies
Tour Operators
Industrial and Mining Companies
Amusement Parks
Hobbyists

Market Trends

Market trends can impact an organisation by influencing consumer behavior, altering supply and demand dynamics, and affecting the organisation's ability to remain competitive in the market.

As part of this study, we have identified a number of potential short-term to medium-term trends that could impact the organisation. These include the following:

Increasing Fuel Costs: As fuel costs increase, American Railcar Industries Inc will have to remain competitive in order to remain profitable. This could mean increasing prices, reducing services, or finding new ways to be more efficient.

Growing Demand for Rail Goods: With an increasing population and a need for efficient transportation of goods, the demand for rail services is likely to increase. This could mean increased demand for American Railcar Industries Inc's services and the need for more capacity and resources.

Autonomous Vehicles: Autonomous vehicles are becoming more popular and this could have an impact on the demand for rail services. Autonomous vehicles could reduce the need for manual labour and could increase the competition for American Railcar Industries Inc.

Environmental Regulations: As environmental regulations become more stringent, American Railcar Industries Inc will need to ensure that they are meeting the regulations while still remaining competitive. This could lead to increased costs and the need to find new ways to reduce emissions.

Key Performance Indicators

Below is a list of KPI's that we have identified as being strategically relevant to this organisation:

Financials (BETA)

The key financials for American Railcar Industries Inc include income statements, which can be found in their annual reports. These financial statements provide information on the organisation's financial performance and health, including revenue, expenses, and profits. This information, along with other indicators are used by investors, analysts and other stakeholders to evaluate the company's performance and future prospects.

Where a financial does not match, we have included those of the parent company (if a listed entity). If the financials are missing please contact us and we will prioritise the update.

Key Personnel

Income Statement

Highlights

Top-level corporate stats and financial highlights for the listed entity, include:

Share Performance

Below is the current (EOD) share performance for the company, or its listed parent:

Potential Products/Services

As part of this study we have attempted to prognosticate potential products and/or services this organisation could develop in the short to medium-term.

Maintenance and Repair Services: American Railcar Industries Inc could offer maintenance and repair services to its customers in order to keep their railway cars running smoothly and efficiently. These services could include regular maintenance and inspection checks, repairs, and general upkeep of the cars.

Custom Design and Build Services: American Railcar Industries Inc could offer custom design and build services to its customers, allowing them to customize the design of their railway cars to meet their specific needs and requirements.

Logistics and Transportation Services: American Railcar Industries Inc could provide logistics and transportation services to its customers, allowing them to transport their railway cars safely and efficiently.

Training and Education Services: American Railcar Industries Inc could offer training and education services to its customers, helping them to properly operate and maintain their railway cars.

Research and Development Services: American Railcar Industries Inc could provide research and development services to its customers, allowing them to stay up to date on the latest technologies and advancements in the industry.

Potential Synergies

Using our product and portfolio-matching algorithm, we have determined that the following organisations have potential synergies with the company:

1. Union Pacific Railroad
2. BNSF Railway
3. CSX Transportation
4. Norfolk Southern Railway
5. Canadian National Railway
6. Canadian Pacific Railway
7. RailAmerica
8. Genesee & Wyoming Inc.
9. Watco Companies LLC
10. Herzog Technologies, Inc.

Porter's Five Forces

Created by Harvard Business School Professor Michael Porter in 1979, Porter's Five Forces model is designed to help analyse the particular attractiveness of an industry; evaluate investment options; and better assess the competitive environment.

The five forces are as follows:

Competitive rivalry
Supplier power
Buyer power
Threat of substitution
Threat of new entries

The Porters 5 forces for American Railcar Industries Inc are as follows:

1. Supplier Power: American Railcar Industries Inc has HIGH supplier power due to its large number of suppliers and its reliance on them for raw materials.

2. Buyer Power: American Railcar Industries Inc has HIGH buyer power due to its large number of customers and its ability to switch to other suppliers.

3. Threat of Substitutes: American Railcar Industries Inc has a LOW threat of substitutes due to the lack of substitutes for railcars.

4. Threat of New Entrants: American Railcar Industries Inc has a LOW threat of new entrants due to the HIGH barrier to entry in the railcar industry.

5. Competitive Rivalry: American Railcar Industries Inc has a HIGH level of competitive rivalry due to the large number of competitors in the railcar industry.

PESTLE Analysis

This PESTLE analysis is a strategic planning tool that assesses key external factors affecting the organisation, including the following:

Political
Economic
Social
Technological
Legal
Environmental

Each of these factors is analysed to determine their impact on the organisations strategy, objectives, and operations.

By utilising a PESTLE analysis, the organisation can make better decisions and develop strategies to address potential risks and opportunities.

CATWOE Analysis

The CATWOE analysis is used to investigate each stakeholders perspectives in order to enable the business to make informed decisions.

The CATWOE analysis is a problem-solving tool consisting of six elements:

Customers
Actors
Transformation process
World view
Owners
Environmental constraints

We view the CATWOE as being most useful when used in conjunction with other problem-solving tools such as a SWOT analysis.

Customers: American Railcar Industries Inc. (ARI) provides railcar products and services to the railcar industry, including leasing, repair and manufacturing services. ARI’s customers include railroads, railcar owners and operators, shippers, and private and public sector organisations.

Actors: ARI’s main actors include its employees, customers, suppliers, and shareholders. Other actors include local and federal government agencies, rail industry organisations, and the media.

Transformation process: ARI’s transformation process involves designing, engineering, and manufacturing railcars and providing repair, leasing, and other services. The process also includes managing customer relationships and providing customer support services.

World view: ARI strives to provide high-quality products and services that exceed customer expectations. ARI also seeks to be the leading provider of railcar products and services in the industry by continuously improving their products and services and taking advantage of new opportunities.

Owners: ARI is owned by a consortium of private investors.

Environmental constraints: ARI must comply with local, state, and federal regulations related to safety and environmental issues. ARI must also comply with industry standards and regulations and must stay abreast of industry developments. ARI must also take into account economic conditions and market trends when making decisions.

SWOT Analysis

This SWOT analysis is a strategic planning tool used to assess the strengths, weaknesses, opportunities and threats of the American Railcar Industries Inc business.

When creating this SWOT the team at Platform Executive have taken into consideration the corporate strategy; brand; key financials; the competitive landscape; along with the products and/or services offered.

To offer increased context for future innovation and product development we also consider the historical context for the business and industry; and perceived direction of travel.

Upon researching the company, we have uncovered a number of strategic and operational strengths, weaknesses, opportunities and threats.

Strengths

Below is a list of the strengths we have identified for the business:

1. American Railcar Industries Inc has over 40 years of experience in manufacturing railcars.

2. The company has a strong customer base, with over 8,000 railcars in operation.

3. American Railcar Industries Inc has a strong financial position, with over $200 million in assets.

4. The company has a strong management team with experience in the rail industry.

Opportunities

Below is a list of opportunities we have identified for the business:

1. Expand American Railcar Industries Inc.'s (ARI) product line to include higher-value, specialised components. ARI could capitalise on its existing customer base by introducing new components that are tailored to the needs of its current customers.

2. Increase ARI's manufacturing efficiency. ARI could focus on streamlining its production processes by investing in automation and other technological advances. This would enable ARI to reduce its costs and improve its margins.

3. Develop new markets for ARI's products. ARI could expand its customer base by targeting new markets, such as the public transportation sector. ARI could also capitalise on its existing customer base by offering additional services and product lines.

4. Invest in research and development. ARI could invest in R&D to stay ahead of the competition and remain competitive in the market. This would enable ARI to develop new products and services that meet customer needs, as well as enhance existing product lines.

Weaknesses

Below is a list of the weaknesses we have identified for the business:

1. Lack of significant market share: American Railcar Industries Inc. (ARI) holds a small share of the overall railcar market, which limits its ability to compete against larger, more well-established companies.

2. Limited geographical reach: ARI's railcars are primarily used in North America, which exposes the company to risks associated with economic conditions and transportation infrastructure in that region.

3. Dependence on a single customer: ARI is heavily reliant on a single customer, Union Pacific, for a large portion of its revenue. This exposes the company to significant risk if Union Pacific were to reduce or cancel its orders.

4. Lack of manufacturing capacity: ARI does not have its own manufacturing facilities and instead relies on third-party contractors to build its railcars. This reliance can lead to delays in production and higher costs if contractors experience problems.

Threats

Below is a list of the threats we have identified for the business:

1. Increased competition: American Railcar Industries Inc. (ARI) faces increased competition from other railcar manufacturers, both domestically and abroad. This could result in a decrease in market share and profitability as competitors undercut prices and offer more innovative products.

2. Declining demand: Since the 2008 recession, demand for railcars has been steadily declining. This could lead to reduced sales, decreased revenue, and lower profits.

3. Rising costs: ARI faces increasing pressure from rising costs for raw materials, labour, and energy. This could lead to margin compression and reduced profitability.

4. Regulatory uncertainty: ARI must also contend with an uncertain regulatory environment. The ever-changing rules and regulations can cause delays in production and increase costs, both of which could lead to decreased profitability.

5C Analysis

The 5C Analysis is a marketing framework that can be used to provide insight into the key drivers of success, as well as the risk exposure to various environmental factors.

This (concise) 5C analysis examines the external and internal environment for American Railcar Industries Inc. It includes analysing the company's customers, competitors, collaborators, context, and capabilities. We have produced this short analysis to identify potential opportunities and threats to American Railcar Industries Inc, as well as areas where the company needs to improve its operations or strategy.

Company: American Railcar Industries Inc. (ARI) is a leading provider of railcar manufacturing, leasing and related services worldwide. ARI is based in St. Charles, Missouri, and is a wholly owned subsidiary of ITE Rail Corporation. ARI has a long history in the railcar industry, having been founded in 1902.

Collaborators: ARI has a variety of partners and collaborators, including suppliers, logistics providers, and other industry stakeholders. These relationships are essential to the company's ability to provide quality products and services.

Customers: ARI's customers include railroads, railcar owners/operators, and leasing companies. The company also offers its services to industrial shippers, including chemicals, petroleum, and bulk commodities.

Competitors: ARI's main competitors include Greenbrier Companies, Inc., Trinity Industries, Inc., and FreightCar America, Inc. These companies are all part of the railcar manufacturing and leasing sector, and offer similar products and services.

Content: ARI's content includes product information, leasing and service offerings, customer testimonials, and industry news. The company also provides resources such as railcar specifications, maintenance and safety tips, and industry insights.

MOST Analysis

The MOST analysis framework is commonly used to identify an organisation's strategic goals, assess its strengths and weaknesses, and develop a plan to achieve its objectives. This analysis helps organisations to focus on what they want to achieve and how to achieve it, while also identifying potential roadblocks or obstacles that may arise along the way.

Mission
Objectives
Strategy
Tactics

We have created this analysis from a 3rd person perspective.

Innovation Scorecard

As part of our research and analysis activity, the team at Platform Executive assesses and then benchmarks businesses and the industry verticals in which they operate using a proprietary scoring mechanism.

First, we allocate a score of A-E for the industry vertical, gauged on the key organisations operating within the space; and then score the individual business using a 1-5 score.

A score of D-E within an industry means that it is potentially ripe to be disrupted by a new entrant into the marketplace; and/or vulnerable to technological change.

Likewise, a high score of 4-5 for the company in question indicates that in the view of the analysis team it lags behind notable businesses in terms of innovation and product pipeline.

Below is a guide to each score:

Industry score:

A	The industry is amongst the most innovative; with the leading players all driving the sector forward. Example industry: PaaS
B	The industry and its leading players have a good track record of innovation; and can quickly react to change. Example industry: Pharmaceutical
C	Companies operating within the sector have adequate levels of innovation; and engage in R&D activities when appropriate. Example industry: FMCG
D	Businesses operating in the industry do not invest enough time and resource into innovation. The sector is stagnant and a good candidate for disruption. Example industry: Retail Banking
E	The major players in the sector seem to lack suitable product development roadmaps; and as a result the sector is highly vulnerable to industry change. Example industry: Publishing

Company score:

1	The business is amongst the leading players in terms innovation and product pipeline. This will fulfil and reinforce the operations of the business in the medium to long-term.
2	The business has a good track record of innovation, in terms of its products and/or its business model. It is therefore more likely to be able to react and adapt to any changes to the industry.
3	The business is deemed to have an adequate innovation plan, build on research and development and sustainability where appropriate. The business has a product development strategy.
4	The business needs to invest more resource and/or intellectual capital in product development, pipelines and/or its business model. The business is at risk of stagnation.
5	The business seems to lack a suitable product development roadmap; and as a result is vulnerable to any notable industry change and/or new entrants in the marketplace.

The team at Platform Executive has judged American Railcar Industries Inc as having an innovation score of D3.

Appendices

The appendices section of this report contains supplementary information that the team at Platform Executive deems helpful in providing a more comprehensive understanding of the report's contents.

This information is not considered an essential part of the study but serves as a useful supplement to the main text.

Methodology

This study on American Railcar Industries Inc forms part of our series of competitive intelligence reports, which focuses on 10,000 of the largest corporates.

The information and data included are updated on a timely schedule to ensure that our Premium members receive the most up to date information .

The report is based on information and learning from the following sources:

Corporate websites
Proprietary research databases
SEC Filings
Corporate press releases
News articles
Financial data API's
Product-matching algorithm

Further Information

Premium members: If you cannot find the desired information or data set for the business you are researching then please reach out to our research and analysis team. We can tailor reports to meet your requiremnents, with a fast turnaround time.

If you require a bespoke study on a particular industry vertical, or marketplace we may also be able to help.

Disclaimer

Reproduction of the content produced in this report is prohibited without the prior permission of the publisher, Platform Executive Pty Ltd.

The facts of this report have been gathered in good faith from both primary and secondary sources. It is believed to be correct at the time of publication, but cannot be guaranteed. As such Platform Executive can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.

Changelog

Premium members: To request a priority update to this report, please contact us. Our standard turnaround time is normally 48 hours.

The changelog for this report can be found below, complete with the next scheduled update:

v1.1: Initial load of report
Date: 1st March 2023

Key Financials added (BETA)
Date: 17th March 2023

Next scheduled update: 25th April 2023

Industry Keywords

Related keywords:

Leasing leasing services Railcar manufacturing repairs

The Cheesecake Factory Incorporated

Rush Enterprises Inc