Rail supply industry contributes $127B annually to GDP, report says

The rail supply industry contributes $127 billion annually to the U.S. gross domestic product (GDP) and directly employs an estimated 338,000 workers, according to the industry's latest edition of its economic impact report. 

Produced in partnership with Oxford Economics, the study was commissioned by the Railway Supply Institute (RSI), the Railway Engineering-Maintenance Suppliers Association and the Railway Tie Association.

The report includes a new, expanded analysis of the industry across key market segments, offering a clearer picture of the distinct economic contributions of freight rail as well as Amtrak and passenger rail suppliers. When accounting for indirect and induced effects throughout the broader economy, total employment supported by the industry rises to 906,000 jobs, according to a press release issued by RSI.

The report also highlights how increased federal investment in rail programs has driven growing demand for rail suppliers and strengthened domestic manufacturing and service capacity.

The analysis finds that Amtrak’s procurement and capital investment activity supported 45,800 jobs and generated $6.5 billion in U.S. GDP in 2024, along with $3.8 billion in labor income and $1.4 billion in tax revenue across federal, state and local levels. Those impacts, driven by a nationwide network of manufacturers, engineering firms and construction and service providers, underscore how Amtrak’s investments sustain domestic supply chains, support high-quality jobs and drive economic activity in communities across the country, RSI officials said.

Included in the report are detailed state impact sheets for all 50 states and the District of Columbia.

"Across the country, companies at every level of the rail supply chain support hundreds of thousands of jobs and drive critical manufacturing activity in communities nationwide," said RSI Acting President Ashley Shelton. "From specialized component manufacturers producing bearings, couplers, braking systems and advanced electronics, to original equipment manufacturers building rail cars and locomotives, our industry forms the backbone of America’s freight and passenger rail network."