Regional Manufacturers Encouraged to Participate in $1.8 Billion National Next Generation Railcar Supply Chain

NEPIRC is encouraging regional manufacturers to fully participate in a recently-announced $1.8 billion Next Generation Railcar (NGR) domestic supply chain initiative as a way to increase sales, achieve customer diversification and experience profitably growth.

The Federal Railroad Administration recently awarded a total of $1.8 billion in grants to transportation departments, agencies and private companies for the fabrication of 130 bi-level railcars and 28 next generation locomotives to service rail lines throughout California, Michigan, Missouri, Indiana, Iowa and other states throughout the Midwest. These new railcars and locomotives will incorporate numerous design improvements and innovations intended to increase energy efficiency, drive down initial purchase and ongoing maintenance costs and improve passenger satisfaction. 

In order to capitalize on these grants, however, railcar and locomotive OEMs must meet 100% domestic content provisions for parts and sub-assemblies. To achieve compliance with that requirement, companies such as Alstron, Bombardier, GE Transportation, Kawasaki Railcar, Siemens, Stadler Rail and others will soon be issuing RFPs for the production of many railcar and locomotive components.

NEPIRC has been named the regional coordinator of this nationwide effort and, in that capacity, will help connect small and mid-sized manufacturers throughout Pennsylvania, New York, Maryland and Delaware with NGR RFPs and supply chain opportunities. NEPIRC will directly inform manufacturers throughout northeastern Pennsylvania of NGR opportunities and is available to work directly with regional manufacturers in the preparation of RFP responses. NEPIRC will work with Manufacturing Extension Partnership locations throughout other regions of Pennsylvania, New York, Maryland and Delaware to help them coordinate their NGR supply chain initiative and will also perform preliminary reviews of the RFP responses they submit for their manufacturing clients.

The NGR initiative represents an unprecedented opportunity for northeastern Pennsylvania manufacturers, as well as manufacturers from throughout the eastern United States, to dramatically grow their businesses, enter a new supply chain and actively participate in the modernization of the intermodal transportation system in the United States.

The first round of RFPs is slated for release in April, 2012. Regional manufacturers will be contacted with relevant bidding opportunities as they arise. However, companies wanting to contact NEPIRC to talk one-on-one about growth opportunities within the rail industry supply chain are encouraged to call NEPIRC at 570-819-8966 or send an email to info@nepirc.com.