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

2. Railway Industry Association 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:

3. Railway Industry Association 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:

4. Railway Industry Association RIA Members – February 2010

5. Railway Industry Association 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

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 Industry Employees, estimated Total Industry, at least190,000 Operators (TOCs/FOCs)60,000 Network Rail36,000 London Underground19,000 Supply Industry75,000 So supply is about 40% of the industry (HS2 Cmnd Paper)

8. Railway Industry Association 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

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

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

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

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