Establishments indicating interest in making surface transportation components were typically small to medium sized machine shops which performed contract work for aircraft and aerospace manufacturers. These firms have strong capabilities in precision machine work, including the ability to work to demanding military specifications and produce small batches to-order. In general, the stronger the ties between an industry and aircraft and aerospace production, the greater the level of interest in diversifying. There is a mismatch between the product requirements for rail car manufacture and the production capabilities of Los Angeles firms responding to the survey. In general, these products do not require the high-precision capabilities of the aircraft and aerospace subcontractors.
Components are more frequently custom made and machined to finer tolerances.
Products are frequently manufactured in relatively small quantities. Completed systems have a higher share of electronic and electrical subsystems to enhance performance, controls, information feedback and safety. The relatively small size of the bus and rail transit markets in comparison to aerospace is another important factor to consider in planning a regional industrial diversification strategy. Not only are these markets small, but they are dominated by centers of manufacturing strength in other regions. Industrial diversification plans for using regional investments in surface transportation to create jobs for laid-off aerospace workers need to have a strategy for reaching beyond surface transportation to larger markets.