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REPORT FINDS FREIGHT RAILROADS GREATLY IMPACT ECONOMIES


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#1 CNJRoss

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Posted 15 June 2016 - 02:39 PM

AAR news release, 6/13:

NEW REPORT FINDS FREIGHT RAILROADS GREATLY IMPACT NATIONAL, LOCAL ECONOMIES

 

Towson University Research Finds Railroad Investments Produced 1.5 Million Jobs, $274 Billion in Economic Activity and $33 Billion in Tax Revenues in 2014

 

 

WASHINGTON D.C., June 13, 2016 – The Association of American Railroads (AAR) released today its second "State of the Industry Report" of 2016, featuring new research from Towson University's Regional Economic Studies Institute (RESI) that finds spending by the seven largest U.S. railroads created nearly $274 billion in economic activity, generated nearly $33 billion in state and federal tax revenues and supported nearly 1.5 million jobs nationally in 2014 alone.

 

The report is the first of its kind to quantify the sweeping impact of investments by Class I railroads with U.S. operations on the overall economy.

 

"Railroads maintain high paying jobs within its sector and create numerous jobs in related industries that collectively spur significant economic activity," said Dr. Daraius Irani, lead researcher and Chief Economist at RESI. "Significant capital investments by railroads and the steady presence of a coast-to-coast network that can reliably deliver goods at a cost effective rate generates a ripple effect seen in this study. Railroad spending means job growth, dollars to communities and global competitiveness."

The AAR adds context to the data in the report with several key points, including:

  • Spending: $28 billion in investments by freight railroads in 2014 is more than half of all federal spending on transit formula grants, federal highway construction programs and airport improvement programs combined.

  • Output: $274 billion in output – or goods and services produced – is nearly the GDP of Finland, according to International Monetary Fund data. This amount of money could build 24,909 miles of six-lane urban interstate highway, fund Medicare for nearly 25 million Americans or pay for the four-year college education of 2.2 million students.

  • Jobs: One job in the freight rail industry supports nine others touched by the industry, including retail, manufacturing and transportation and warehousing.
     

  • Taxes: The rail industry's state and local tax generation is greater than the taxes collected by 30 individual states in 2014; The nearly $21 billion in federal taxes is nearly three times the amount allocated for the National Science Foundation in 2014.
     

"Railroads provide the foundation that enables the world's top economy to thrive," writes AAR President and CEO Edward R. Hamberger in the report. "For manufacturers and consumers, small and large businesses, energy companies and farmers, freight rail is the basic building block that allows a great sweep of economic activity to take place across the country. Without railroads our economy would be vastly different."

Hamberger and economists make clear, however, the strong economic impact requires smart public policy that does not impede day-to-day operations or diminish continued private capital investment.  

"Any lawmaker considering additional regulations should take a long-term view," said Clifford Winston, an applied microeconomist at the Brookings Institution.  

"Realize that this industry is still evolving from an inefficient past," he stated, "and while there may be some bumps along the way, overall, the path the industry is on today has been much better for railroads and American society compared with the industry's evolution when it was stifled by excessive regulations before regulatory reform began in the 1970s."

Similar to AAR's first State of the Industry Report, this edition features a mix of content across multiple chapters. Articles support the foundational research from RESI, analyzing impact across four areas: national economy, customers, consumers and public policy. This includes how: 

  • Railroad industrial development teams catalyze economic growth in communities.

  • Freight railroads help make Americans' lifestyle possible, including in moving automobiles for customers and providing track for commuter and passenger rail.

  • Smart public policy continues to improve safety performance.

The second State of the Industry Report also features insight from experts and organizations like the aforementioned Brookings Institution, as well as Competitive Enterprise Institute, the University of Oregon and R Street, who provide context and unique perspectives.  

AAR invites interested parties to learn more about the State of the Industry Report and see how the industry's continued investments help drive the economy by visiting AAR.org.

###

 

Related topic:  Report: U.S. freight rail regs are outdated, need updating



#2 CNJRoss

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Posted 15 June 2016 - 02:43 PM

The Hill, Washington, DC 6/13:

 

Railroad investments spur economy and improve safety

 

A new study from Towson University’s Regional Economic Studies Institute recently released by the Association of American Railroads confirms that railroads significantly benefit the U.S. economy.  The Towson report found that in 2014, the seven largest freight railroads directly or indirectly accounted for 1.5 million U.S. jobs, $274 billion in economic output, $88 billion in wages and $33 billion in tax revenues.

 

The railroads’ economic impact is so large because railroads move so much freight.  In 2015, America’s Class I railroads delivered 31.5 million carloads of freight to customers nationwide, serving nearly every industrial, wholesale, retail, and resource-based sector of our economy.  Historically, railroads have accounted for approximately 40 percent of intercity ton miles.

 

The railroads have been able to provide their customers and the public at large with efficient transportation services because they have been investing more and more in their networks. In recent decades, railroads spent more than 40 cents out of every revenue dollar on infrastructure and equipment and spending levels in recent years have reached record levels.

 

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#3 CNJRoss

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Posted 13 July 2016 - 07:35 PM

Logistics Management, 7/8:
 

AAR’s State of the Industry Report focuses on impact of railroads on U.S. economy

The financial impact of the United States railroad industry on all facets of the nation’s economy cannot even come close to being understated.

 

 

The financial impact of the United States railroad industry on all facets of the nation’s economy cannot even come close to being understated.

 

For those that are not sold on this thesis, they need to look no further than research recently issued by the Association of American Railroads (AAR) in its second “State of the Industry Report” that features input from an economic impact study by Towson University’s Regional Economic Studies Institute (RESI).

 

Some of the report’s key findings focusing on the economic role of railroads are as follows:

 

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#4 CNJRoss

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Posted 20 October 2016 - 04:37 PM

The Macomb Daily, Ft. Clinton Township, MI 10/15:
 

Steel wheels: Freight trains doing tons of work for area's economy

 

It’s because of the freight railroad industry that Shuert Technologies is in Sterling Heights.

 

“I would never be located here if it wasn’t for the rail site. We make plastic packaging for the auto industry,” said Lyle Shuert of Birmingham, during a tour of the company that he started in 1971.

 

SNIP

 

Most people may not stop to think about it, but freight railroads play a vital role in the transportation of what American businesses make and what consumers here want.

 

“From the food on our tables to the cars we drive to the shoes on our feet, freight railroads carry the things America depends on every day,” said Ed Greenberg, spokesman for the Association of American Railroads.

 

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