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The eBearing News
November 18, 2005
Brenco Reveals Rail Bearing Production Boost
copyright © 2005 eBearing Inc.
Amid North America's rising demand for rail transportation to deliver goods,
Brenco announced plans to boost rail bearing production.
Railroads have benefited from an improving economy, rising over-the-road shipping costs, and a shortage
of truck drivers. Railroads have been among the most astute buyers of diesel fuel, instituted
fuel surcharges, invested in infrastructure improvements, and acquired more rolling stock.
The much-maligned boom in imports from Asian countries has also been a strong
driver of rail transportation demand.
Most railroads said they are expecting 20% to 30% year-on-year revenue
growth in 2006, with profits following suit and rising up to 20%.
Norfolk Southern Corp., for example, recently reported third quarter sales of USD $2.16 billion,
returning net income of $301 million. David Goode, Chairman and CEO of the railroad, said:
"Like the Starship Enterprise, our revenues and volumes are going where we have not gone before, but
we’re enjoying the trip."
Demand for rail shipments has reached the point where customers are suffering for the lack of
railcars. General Motors, for example, recently warned its shipments of high-profit light duty trucks
are being limited by its inability to get all of them on railcars at the truck factories.
Good times for railroads means more rolling stock purchases, and that rolling stock racking up more
miles. Which translates to not only more journal bearings in service but also more worn out
journal bearings.
Brenco said it is currently operating at capacity and will be hiring up to 60 more
workers to expand production at its journal roller rail bearing plant in Petersburg, Virginia.
Founded in 1949, Brenco -- an acronym for BRonze ENgineering COmpany -- manufactured railroad
plain journal bearings from bronze until the early 1960's. At that point, the company shifted
its manufacturing focus to journal roller bearings.
Brenco was acquired by Varlen in 1996, and Varlen was acquired by privately-held
Amsted in 1999. Amsted Rail Group's businesses
also include
Griffin Wheel
and
ASF-Keystone.
Another Amsted operation is Consolidated Metco, a key manufacturer of ductile iron and aluminum
wheel bearing hub assemblies for heavy-duty truck and trailer applications. ConMet uses
Timken bearings in its hub assemblies.
Today, Brenco/QBS claims a 60% market share of the new rail bearing market in North America,
and with Timken, claims to share 85% of the refurbished rail bearing market.
Brenco is also a "technical partner" of Indian rail bearing manufacturer NEI.
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- by Bruce A. Carr
from individual research,
tips and commercial sources.
Unauthorized reproduction is prohibited.
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eBearing.com ... for everything that moves™
Entire contents Copyright 1999-2008, eBearing Inc. All rights reserved.
eBearing.com and "... for everything that moves" are registered
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eBearing.com ... for everything that moves™
Entire contents Copyright © 1999-2008, eBearing Inc. All rights reserved.
eBearing.com and "... for everything that moves" are registered trademarks of eBearing Inc.
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