New Study Shows Pennsylvania, A Leader In Rail Manufacturing, Is Poised To Benefit Economically If Next U.S. Transportation Bill Invests In Public Transit

Duke University analysis of U.S. rail manufacturing shows that Pennsylvania has 26 rail manufacturing facilities, from Pittsburgh to Philadelphia

The U.S. rail manufacturing industry stands to undergo considerable growth in the coming years, as Amtrak upgrades its railcars and adds high-speed trains, and as lawmakers consider a transportation bill that calls for significantly greater investments in public transit, including rail, according to a new study by Duke University prepared for the Apollo Alliance. Pennsylvania, which is home to 26 rail-manufacturing facilities and is planning its own high-speed rail network, would reap major benefits from such a bill.

"Our research found that there is a healthy chain of U.S.-based suppliers that manufacture components and systems for rail cars, and many of them are located in Pennsylvania," said Marcy Lowe, a senior research analyst at the Duke University Center on Globalization, Governance & Competitiveness (CGGC) and the report's lead author.

The report, U.S. Manufacture of Rail Vehicles for Intercity Passenger Rail and Urban Transit: A Value Chain Analysis, looks at the manufacture of U.S. rail vehicles in six categories: intercity passenger, high speed, regional, metro, light rail and streetcars. It finds that the U.S. rail supply chain includes at least 247 manufacturing locations in 35 states. The states with the most manufacturing facilities are New York (32 rail manufacturing facilities), Pennsylvania (26), Illinois (23), California (22) and Ohio (13). Although the U.S. rail manufacturing industry is small -- the report's authors estimate its employment at between 10,000 and 14,000 employees -- industry analysts expect it to grow due to pent-up demand for intercity and urban rail service.

"Pennsylvania has a real chance to be at the center of America's 21st century rail manufacturing industry," said Phil Angelides, chairman of the Apollo Alliance. "Our nation needs a new transportation policy that invests in expanded public transit and more energy-efficient transportation, including rail. Done right, these investments could mean a windfall of manufacturing jobs for Pennsylvanians."

Another study released today, by Transportation for America and the Economic Policy Institute, finds that a $500B transportation bill that invests heavily in public transit will create 7.2 million jobs across the economy, including 761,321 manufacturing jobs, of which 168,024 jobs would be located in the rail manufacturing sector. For more information, visit www.t4america.org.

The Duke University rail study found that manufacturers with facilities in Pennsylvania are Bombardier Transportation (Pittsburgh); Brookville Equipment (Brookville); Hyundai Rotem (Philadelphia); Kasgro Rail (New Castle); GE Transportation (Erie and Grove City); Amsted Industries (Camp Hill); Ansaldo STS USA (Pittsburgh); Bentech (Philadelphia); CAM Innovation Inc (Hanover); Converteam Inc (Pittsburgh); Mitsubishi Electric (Pittsburgh); North American Specialty Glass (Trumbauersville); ORX Railway (Tipton); Penn Machine Company (Blairsville); PHW (East Pittsburgh); Standard Steel (Pittsburgh and Burnham); USSC Group (Exton); UTC Rail Inc (Morton); Westcode Inc (Wilmerding and Greensburg); WEXCO Industries (Philadelphia); Young Windows (Conshohocken); and ZF Sachs Automotive of America (Pittsburgh). They produce a variety of equipment, including driving control systems, door systems, engines and windows.

A similar study on transit bus manufacturing released by Duke researchers in October 2009 identified eight transit bus-manufacturing facilities in Pennsylvania. These companies also would benefit from increased public transit investments in a new transportation bill.

The report's authors conclude that to grow the U.S. rail manufacturing industry will require committing much larger and more consistent U.S. investments to intercity passenger and urban transit rail. The report also recommends that Buy America provisions be improved through additional accountability mechanisms and the closing of loopholes. Finally, it recommends that policymakers and manufacturers implement measures to capture higher-value activities in the supply chain, such as design and engineering, for the U.S. market. Currently those activities are mostly performed abroad.

SOURCE: Duke University