I think eventually, more orders will simply lead to more plants. A delivery backlog would result in less bids for companies that cannot meet order requirements.
The supplier for LA is building a plant there.
Backlog happens for many reason, but the lack of skill workers is one of the main reason.
The lack of space and taking on more projects also has an effect on delivery.
Sometime bidders don't know when delivery is to take place if the bid is delay in being awarded or change to the point bidders have to find work to keep their staff working with out loosing then to lay off.
Sometimes you think you lost the project to the point you accept another project only to find out months later you are now in line for that project.
Some company still go after projects knowing full well they don't have the capacity to keep out other bidders out of the market.
There is a cost of building more plants to meet X market demand, but what does it mean for then staying around when there is a down turn and is it worth the effect to build it in the first place.
Yes Thunder Bay will have more capacity come end of 2015 when the last of the new TR's are built to deal with more LRT cars, but what is the out look for the plant after the LRT's are built? GO is keeping the plant busy with more Bilevel cars, but who else is buying the same car these days as the big buyers have gone to off shore company's.
Given the free trade agreement these days, the 25% Canadian Rule is out the window to make it an equal bidding field.
At the end of the day, building more plants in Canada by one builder is not on the books.