CPA Bulletin

rail plant association RAIL PLANT ASSOCIATION: 1 Existential crisis I write this article with the rail plant industry facing an existential crisis. At a recent meeting, there was a realisation that the workload has fallen to such a low level that irreparable damage could be caused to the supply chain and the industry may take many years to recover. To put the situation in context, we can look back to the early 2000s when there were many more plant owners hiring specialist plant onto the railway infrastructure. These companies suffered from the desire of the newly formed Network Rail to reduce the supply chain, making it more manageable for them and, of course, reducing supplier prices at the same time. The result was an industry consolidation with many companies leaving or going into liquidation. The double whammy of a harsh tender process and the increasing costs of compliance were too much for many RPA members at that time. More recently, Control Period 5 was well received by the remaining plant companies and the strength of the workload made it easier to plan for plant purchases and investment because the banks and finance houses were able to establish risk and provide much-needed funds. In the event, the workload was higher during the early part of the control period and, when demands were made by Network Rail to improve reliability, it was possible to put more funds into that workstream. Drastic downturn But RPA members have said that there has been a drastic downturn in workload, with some saying that they are working at around 70% of recent levels during the week and at as little as 60% of recent levels at weekends with very little visibility of a future work bank. They see the situation as unsustainable and already there is evidence of plant owners parking equipment in their yards instead of updating and renewing. Since its inception, the members of the Rail Plant Association (RPA) have worked alongside industry groups to improve the wellbeing of those in our industry and advance efficiency where possible. I typically use these articles to explain some of the initiatives that the RPA is working on, but on this occasion, I believe that we should bring awareness to the issues that are causing concern to the whole industry. www.cpa.uk.net CPA Bulletin > November 2019 53