ARE MASS TRANSIT RAIL GOODS MADE IN THE US?
A BRIEF NOTE BY JONATHAN M. FELDMAN
INTRODUCTION
I was interviewed by Louis Uchitelle of The New York Times about U.S. mass transit production in an article published on February 21, 2009, see: "'Buy America’ in Stimulus (but Good Luck With That)," The New York Times, February 21, 2009. Reference: http://www.nytimes.com/2009/02/21/business/21buy.html?pagewanted=all
To clarify the state of domestic production, I wanted to note that there are at least three main suppliers of subways to the most important market, New York City. The level of domestic content in subway production will be addressed in greater detail in a forthcoming article in The American Prospect, April 2009.
This is not a comprehensive list, but gives an indication of some of the key suppliers of rail goods in mass transit. Starting with the subway market, there is no single U.S.–based producer, although assembly operations owned by foreign firms exist and are clustered in New York state. The main foreign suppliers of subways to the U.S. include Alstom, Bombardier, and Kawasaki (companies based in France, Canada, and Japan respectively). South Korean–based Hyundai Rotem and German-based Siemens are also key suppliers of transit vehicles.
NEW YORK STATE
Three companies--Alstom, Bombardier, and Kawasaki--have been the main suppliers of finished subway vehicles to New York City which represents the largest market for subways in the United States. Alstom has operations in Rochester and Kawasaki has a facilty in Yonkers, New York. In 1995, Bombardier opened a "new state-of-the-art 61,761-square-foot railcar assembly plant in Plattsburgh, the Company's third U.S. rail transportation equipment manufacturing facility" (see Business Wire, December 1, 1995). The Spanish mass transit builder CAF has also had operations in New York State related to subway manufacture (for Washington, D.C.). There are many manufacturers of subsystems for subways in New York State, with one key cluster of firms located in Hornell. On Bombardier's facility, see: http://findarticles.com/p/articles/mi_m0EIN/is_1995_Dec_1/ai_17789842.
PENNSYLVANIA
In Pennsylvania, South Korean-based Hyundai Rotem has established operations in the Philadelphia area. According to a company spokesperson, the company's first two US contracts were with SEPTA and Southern California Regional Rail Authority SCRRA. The SEPTA contract was worth $271 million. The SCRRA contract (awarded April 2006) was $245 million (with all options - $300 million). Hyundai Rotem's contract with the MBTA was worth $190 million. It was awarded in the Spring 2008 with two potential options of 75 vehicles each. Another key systems integrator involved in finished mass transit vehicles in Pennsylvania is Brookville Equipment Corporation based in Brookville, Pennsylvania. The company has refurbished street cars for various cities including New Orleans, Philadelphia, and San Francisco. They also supply commuter rail systems. In Warrendale, Pennsylvania, Mitsubishi Electric Power Products, Inc. manufactures electrical and electronic products and systems including those used in mass transportation. The Boeing-Vertol Company used to make subways and light rail vehicles in Pennsylvania.
SOME OTHER SUPPLIER LOCATIONS
Kawasaki has a manufacturing facility in Lincoln, Nebraska. Siemens Transportation Systems Inc. has a light rail manufacturing facility in Sacramento, California. Oregon Iron Works (OIW), is a new developer of street cars and is based in Portland, Oregon. OIW is completing their first prototype.
SOME POLICY QUESTIONS
Some would like to increase domestic content of mass transit goods. This will be the subject of a meeting that will be organized by various persons including Robert E. Paaswell, Director of the University Transportation Research Center at City College in New York and the Institute for Policy Studies in Washington, D.C.
