Trade Strategy representation to the Department for Business & Trade from the Railway Industry Association January 2025 1.
INTRODUCTION
1.1.
This paper is the Railway Industry Association (RIA) submission to the Department for Business & Trade (DBT), in response to the Trade Strategy call for input.
2.
ABOUT RIA
2.1.
RIA is a national trade body, which champions a dynamic UK rail supply sector. Our mission is to help grow a sustainable, and high-performing railway as well as promoting UK rail expertise and products to international markets. Rail is a foundation sector for the UK’s economy which supports sustainable investment and jobs in communities across the UK. RIA has over 400 companies in membership, and is active across the whole of railway supply, covering a diverse range of products and services and including both multi-national companies and Small & Medium Sized Enterprises (SMEs), 60% by number.
2.2.
The rail network remains one of the UK’s most valuable assets, with potential to support clean growth and wider social benefits for communities right across the UK. A 2021 report produced by Oxford Economics shows that the rail industry supports: • More than £41 billion GVA in economic growth; • 640,000 jobs; • Over £14 billion in tax revenue each year; • Labour productivity across the rail supply sector is 29% higher than the national average; and • Rail related exporters and their supply chains add £800 million to the UK economy each year, contributing 12,500 jobs.1
2.3.
UK rail has a global reputation, so there is enormous potential to grow rail exports, boosting UK trade and increasing resilience of the UK supply chain, e.g., creating new SME jobs. The Global Market Study conducted by the European trade association UNIFE in 2022 forecasted rail market growth of 3% every year to 2027, from a current market volume of €177 billion per annum.2
2.4.
There is an exciting opportunity for UK rail to increase exporters to the global market, by developing a Trade Strategy with the correct support and direction. RIA already undertakes a wide variety of export activities, open to both RIA member and nonmember organisations alike. This includes arranging overseas rail trade missions, national UK Pavilions at major rail exhibitions, exporting seminar events, schemes such as ‘Meet The Buyer’ and support for inward missions – this is often conducted in partner- ship with the DBT’s overseas Posts, regional officers and/or the DBT sector rail team.
1
Oxford Economics, 2024. The Economic Impact of UK Rail in 2023. https://riagb.org.uk/RIA/Newsroom/Publications%20Folder/The_Economic_Impact_of_UK_Rail_ in_2023_Infographic. 2 World Rail Market Study 2022. UNIFE. https://www.unife.org/
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