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Rail News: Rail Industry Trends

RTA report: Following seasonal pattern, crosstie purchases fall in July

After rising in June, crosstie purchases dropped 8 percent in July to 1.65 million units compared with the previous month, according to the Railway Tie Association’s (RTA) monthly market report. July tie production of 1.59 million units fell 11 percent compared with June.

“July numbers are typically below June’s,” RTA officials said in the report. “Purchases are following the seasonal pattern, but production is below seasonal norms.”

During the year’s first seven months, tie purchases totaling 11.4 million units rose 8 percent compared with the same 2004 period. However, tie production totaling 10.3 million units declined 10 percent.

“Purchases have exceeded production by over 10 percent,” RTA officials said. “Compared to the year-to-date average from the past five years, purchases were 13 percent higher while production was 9 percent higher.”

During the past 12 months, tie purchases totaling 18.5 million units outpaced production of 18.1 million units. The inventory-to-sales ratio declined slightly to 0.75 compared with the previous 12-month period.

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More News from 8/18/2005