Assessing the Health of U.S. Passenger Rail Supply: 3 Takeaways

By RSI Staff

In 1982, the Buy America Act was passed as a provision of the Surface Transportation Assistance Act, requiring mass-transit projects—be it rail, highway, or rapid transit—to purchase certain materials for infrastructure in the U.S.

But domestic preference assumes a healthy domestic supplier base. So what does the health of rail supply in the U.S. look like today?

Ahead of the RSI Expo & Conference, taking place October 9-11 in Chicago, we spoke with Norman Brown, legislative director, New York State Council of Machinists, and Brandon Teal, director, railway machine systems, NSH USA. Brown and Teal will be on a panel discussing the health of passenger rail in the U.S., reflecting on the sector’s evolution in the last several decades. From our conversation, three themes emerged.

1. Europe and Asia are setting a high bar, with opportunity to be found in the U.S.

“U.S. mass transit operators and consumers look at European and Asian train operations as a standard to live up to, particularly regarding on-board amenities,” Brown says. “Most providers in Europe and Asia have U.S. operations that employ a lot of people who are increasingly influential as their numbers grow.”

Brown notes that these operations provide opportunity paired with potential hurdles. While they create a channel for bringing new methods and techniques to their U.S. companies, this also depends on the willingness of vendors to freely exchange information rather than put up a proprietary wall.

Broadly speaking, Teal sees plenty of opportunity to go around. “In the U.S., there are now more buying options than ever before,” he says. “With other markets becoming saturated, international competitors are increasingly seeking opportunities in the expanding U.S. rail sector.”

2. Investment in this sector is key to sustained success.  

“In many ways, the U.S. provides a valuable growth opportunity for European and Asian producers whose systems are much more built out,” Brown says. “One of the advantages of passenger rail in the U.S. travel market is that the equipment lasts two or three decades, depending on the financial position of the operators.”

While this puts U.S. operators in a favorable position, Brown notes that consistent investment over time is key here. He advises looking closely at how European and Asian counterparts finance their operations. “If we are not willing to provide similarly robust financing to our systems, then I would suspect that European and Asian operations will continue to churn out products and systems we will envy as they perfect systems and equipment we already admire,” he says.

Teal turns his focus to ways the industry can strengthen its supply chain in the U.S. “Having been in the rail industry since 2006, I have observed a significant increase in the variety of car builders and equipment manufacturers entering the U.S. market, with many now producing their products in compliance with Buy America regulations,” he says. “By comparison, domestic and foreign passenger wheel and axle producers seem to have chosen not to produce more raw and finished components in the U.S., even though demand continues to increase. Addressing this gap could strengthen the industry’s domestic supply chain to support current and future needs.”  

3. Technology is providing opportunities for innovation, with the caveat of a skills gap.

“Technological advancements in our industry have progressed significantly over the past 20 years. We continuously implement new technologies that align with our engineering and design methodologies,” Teal says.

As with many industries, however, the rate at which technology advances seems to outpace the skills of the workforce behind it. “Customers seem to have a difficult time finding and retaining skilled personnel to operate and maintain our machinery,” Teal says. “At the same time, we are presented with opportunities to provide skilled operations and maintenance services with our own personnel.”

“Passenger rail operators need to onboard the intellectual skills and redevelop internal engineering capacity to face international trade,” Brown says, noting he sees a trend in U.S. operators relying more on importing intellectual labor and software from foreign producers.

The Road Ahead

The U.S. passenger rail sector is navigating a complex landscape, influenced by global competition, technological advancements, and evolving regulatory requirements. Steady presence from international players introduces opportunity and healthy competition, making it essential for U.S. rail suppliers to balance innovation with sustaining skilled labor. Looking ahead, investment in equipment and personnel will be crucial for the industry’s growth and continued success.

Join RSI in Chicago, October 9-11, for the RSI Expo & Conference. Norman Brown and Brandon Teal will be joined by John Fink, VP, sales and marketing at Wabtec, in a panel titled, “Supporting a Strong Passneger Rail Supplier Base in the United States.” The session, moderated by Ed Fishman of Hogan Lovell, will take place Thursday, October 10 at 2:30 p.m. CT. Learn more and register today.