That’s how much the railroad industry pumps into the U.S. economy in GDP every year.
And they've thrown a solid $26 billion into upgrading infrastructure — everything from tracks, to cars, to parts. But railroads face real headaches when it comes to sourcing and manufacturing the components they need.
In fact, there are 7 big challenges they’re facing in 2025 when it comes to parts manufacturing.
These challenges come from the railroad industry's reliance on highly specialized parts, the maintenance of aging infrastructure, and the management of complex and often lengthy supply chains.
Railroad equipment often requires highly specialized parts. But not many manufacturers are equipped to produce these niche parts and components.
This puts railroads in a tight spot.
Those few-and-far-between suppliers face disruptions all the time due to factors like global events, raw material shortages, and transportation delays.
You could be left hanging, waiting for your parts to arrive and delaying your already-tight schedule.
Or you could choose another way: Manufacturers that specialize in producing parts for the railroad industry specifically and that have multiple locations.
A manufacturer with multiple locations means you’re not out of luck when a supply chain issue hits. Instead, your manufacturer can simply move your production to another one of its shops.
And if they’re specialized in producing parts for the railroad industry, there will be no hiccups in production. They’re experts in making the specialized parts you need, so you don’t have to worry about long lead times.
The manufacturing process for heavy-duty railroad components can be time-consuming.
Translated? Long lead times for getting your parts made.
This can significantly impact your maintenance schedules and operational efficiency. And no one likes to be made to wait – it's stressful getting the parts you need at the last minute.
It’s important to work with manufacturers that are transparent about their lead times.
Being up front and honest about how long a part will take to produce gives you a timeline of when it will be ready. Even better is a manufacturer who can deliver faster than promised.
You can bet that manufacturers who offer significantly faster lead times on railroad parts are specialized in that industry – they know what they’re doing, they’re familiar with your parts, and they can get them made fast.
Railroads have been around for a long time. So, much of the railroad industry’s infrastructure and rolling stock are aging.
This means you often need to source parts for equipment that may be decades old. This can be challenging: Original suppliers may no longer exist or have discontinued production of your specific components.
It’s frustrating to try to track down these out-of-date or non-existent suppliers.
It's even more of a headache when you can locate them, but they can’t deliver.
The problem of aging railroad infrastructure isn’t going away anytime soon. But smart railroad companies will form partnerships with reliable manufacturers now to prevent gaps in production later.
It’s worth it to have a shop — or even better, a network of shops — on stand-by ready to produce replacement parts fast.
Striking the right balance in inventory management is crucial. You need to hold onto enough stock of critical parts to minimize downtime when a problem comes up.
But it can be costly to hold on to too much inventory, too.
Modern technology can help: Implementing predictive maintenance software can help railroads anticipate part failures and know how much inventory — and what kinds — to keep on hand.
But what happens in unforeseen circumstances — when components are needed in a hurry?
Your best bet is to have a standing partnership with a reliable railroad parts manufacturer that knows the biz. Ideally, they’ll at least have the designs for your parts on hand. Better yet, you’ll have ordered parts from them before so they have experience whipping them up.
With a manufacturing partner in place, you’ll rest easy knowing no inventory mishap will derail your operations.
The railroad industry is constantly having to adjust for costs. So many things impact efficiency and profitability:
It’s no wonder railroads are constantly trying to cut costs.
Even if times are good, there may be any number of issues just around the bend that could increase costs.
And that makes it even more important to rely on parts manufacturers that competitively price their products.
More and more railroads are turning solely to American-only parts manufacturers with the shifts in overseas regulations. Any U.S.-made product is going to be higher quality than an overseas one and so cost more.
However, quality U.S.-made railroad parts don’t have to break the bank.
Make sure to do your due diligence with your parts manufacturer. Compare quotes between different suppliers, test for quality, and choose the partner that can give you the best of both worlds.
There are a lot of regulations in the railroad industry.
From track inspection, to equipment safety, to employee training, the Federal Railroad Administration, OSHA, and ICC put a lot of pressure on railroads to keep things safe.
Included in that list are railroad parts and components.
They have to meet stringent safety and quality standards. And that adds a layer of complexity to the procurement process for railroads.
Not only do parts have to be industry-specific and made quickly, but they also have to meet the detailed and mandatory requirements of the law. It seems like a lot to ask any manufacturer.
A lot of manufacturers claim they can meet these standards, but can’t put their money where their mouth is.
Before using a new railroad parts manufacturer, make sure they’re properly certified and understand the requirements of the rail industry. When they produce your parts, inspect them carefully to make sure they meet compliance.
It will be worth it in the long run to find a supplier who can do all three: meet compliance, make niche railroad parts, and turn around production quickly.
Every industry is feeling the effects of new software and technologies, the railroad industry included: smart sensors, digital controls, and autonomous cars.
You’ll have to keep up with implementing these new technologies to remain competitive.
And that means a growing demand for new types of parts. These parts may never have been designed before, much less manufactured.
You’ll need a supplier that has the expertise in the industry, the capacity of multiple locations, and the flexibility to work with you through the creation process.
Only with the help of a reliable manufacturing partner will you be able not just to survive the emergence of new technologies, but thrive under their growth.
Yes, the railroad industry has had and will most likely continue to have a lot of challenges. And sure, they can be hard to overcome when they’re faced alone.
There’s a better way.
The key to overcoming these obstacles and facing the future with confidence lies in a strong manufacturing supplier partnership.
We recommend looking for a supplier that:
The team at ReNEW Manufacturing Solutions checks all these boxes.
In fact, some of the biggest names in the railroad industry — TrinityRail and Wabtec — trust us to produce parts for its cars, locomotives, and maintenance-of-way (MOW) components.
For nearly four decades, we've been a trusted manufacturer of railroad components, with two fully equipped shops ready to produce parts for locomotives, maintenance of way (MOW), and both commercial and passenger railcars.
We understand what the railroad industry is facing, and we understand how to help you.
Get a virtual tour of one of our four U.S. locations today and start working with us!