US Rail Manufacturing Supply Chain Poised for Growth with Passage of Transportation Bill

July 3, 2010
The US rail manufacturing industry, which includes 247 manufacturing facilities across 35 states, could see considerable growth in the coming years, as Amtrak upgrades its railcars and adds high-speed trains, and as federal legislators consider a ...

The US rail manufacturing industry, which includes 247 manufacturing facilities across 35 states, could see considerable growth in the coming years, as Amtrak upgrades its railcars and adds high-speed trains, and as federal legislators consider a transportation bill that includes significantly greater investments in public transit, according to a new study from the Apollo Alliance.

Although the US rail manufacturing industry is relatively smallthe report's authors estimate it employs between 10,000 and 14,000 workersanalysts expect it to grow due to pent-up demand for intercity and urban rail service. In particular, the states with the most manufacturing facilities, including New York (32 rail manufacturing facilities), Pennsylvania (26), Illinois (23), California (22) and Ohio (13), are likely to see significant economic benefits if the transportation bill passes. In fact, another study released this week by Transportation for America and the Economic Policy Institute, finds that a $500 billion transportation bill that invests heavily in public transit will create 7.2 million jobs across the economy, including some 761,321 manufacturing jobs, of which 168,024 jobs would be located in the rail manufacturing sector.

Still, there are significant gaps in the domestic rail manufacturing value chain. Even though US domestic content rules have ensured that 60 percent of content is U.S.-made, higher-value activities are mostly performed abroad. The Apollo Alliance report suggests several measures to help develop the US industry and capture higher value activities in its supply chain. This list of recommendations includes:


Improving the accountability and transparency of Buy America and Buy American rules.


Revisiting U.S. standards and specifications to stabilize the market and bring down costs.


Increasing government support for research and development (R&D).


Adopting a collaborative, orchestrated approach to expanding the supply chain, encouraging innovation, and bringing new technologies all the way through prototyping and commercialization.


"Our research found that while there is already a healthy chain of U.S. manufacturing locations that produce components and systems for rail cars, the sector still has plenty of room to grow if the next federal transportation bill prioritizes public transit and rail investments," says Marcy Lowe, a senior research analyst at the Duke University Center on Globalization, Governance & Competitiveness (CGGC) and the report's lead author.

Popular Sponsored Recommendations

Customer-centric Discovery Experiences Reduce Sales and Content Management Costs by 15%

Sept. 11, 2023
In this article, research and analysis is provided on the results of developing product discovery experiences in the B2B sales process. In addition, it provides details on how...

You Cannot Stay Competitive by Bolting New Technologies to a Legacy ERP

Oct. 20, 2023
Read this white paper to understand the benefits of shifting to a next-generation ERP system as part of a DOP.

Are You Positioned To Tackle Supply Chain Risk?

Sept. 20, 2023
Supply chain disruption is here to stay, but you can keep ahead of potential issues — and identify new opportunities — by regularly assessing your suppliers. Download our supplier...

Discover How an Eye Tracking Study Improves Training Procedures

Oct. 29, 2023
Did you know that your training processes can be streamlined by visualizing and analyzing key skills within your employee base? Find out how we use eye tracking to capture advanced...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!