Study shows Illinois poised to benefit from U.S. public transit investment

Visioning Sessions 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. Illinois, which is home to 23 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 Illinois," 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.

"Illinois 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 the citizens of Illinois."

Another study released 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 761,321 manufacturing jobs, of which
168,024 jobs would be located in the rail manufacturing sector.

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.

The full report is
available at apolloalliance.org and on the Duke University website <http://news.duke.edu/2010/06/rail_study.html> .