Eastern Railroad Discussion > Freightcar-America slated shut down operations.

Just saw this news release.

http://wsls.com/2017/03/29/freightcar-america-halting-production-in-roanoke-in-june/

 

Sad. Nearly 400 good jobs

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Is this a final shutdown as in scrap all equipment? Or might it re-open if and when the this market comes up?  That's a physically large footprint there in Roanoke.  Sad. story once again. I look around here in NE Ohio and wonder how many more restaurant employees or satellite dish installers can make up for Ford, Chrysler or generating plants here.
RichS   

A more complete story from The Roanoke Times.

http://www.roanoke.com/business/news/roanoke/freightcar-letter-describes-job-cuts-halt-to-production/article_f96cae54-c14b-53e4-9840-84ca354dc73a.html

From the story:  "A late spring "halt" to production at FreightCar America in Roanoke may be temporary, the company told Roanoke leaders."

Freightcar America also has plants in Danville, Illinois (idling March 31) and Cherokee, Alabama.

Freight Car America previously shut down its original railcar production facilities in Johnstown, PA years ago in favor of more southern plants. Alabama is a Right-to-Work state, that is, anti-union. Labor wages are less. I'm not sure if Virginia is a R-of-W state. Anyway, its labor is probably more expensive than Alabama; and Illinois. FCA in Roanoke made primarily coal carrying gons, tubs, or hoppers. The decline of the coal business nationwide, primarily due to low natural gas prices due to fracking making older, smaller coal fired plants convertabile or obsolete, has reduced coal demand and rail car need especially in the East. This is unfortunate for miners, union workers supplying railcars, railroad employees, and even some investors like me. But it is largely irreversible in the near future despite the political rhetoric you might hear from local politicans and uninformed TV broadcasters. And electricity consumption in the UA has been almost constant for the last few years. Read Trains magazine.

I can only hope the coal cars FCA has recently produced will find revenue loads somewhere, and the plant will be needed for some future RR business regardlesss of what car type.

Some current/recently completed orders at the Roanoke plant have been hoppers lettered for VULX, EFNX, and WRRC, and gondolas for Norfolk Southern. I was a little surprised by the shutdown mainly because the recent activity isn't related to the coal industry.

> Alabama is a Right-to-Work state, that is, anti-union.

Alabama is the most unionized state in the south... 9% representation, compared to the national average of 12%. Alabama was actually at the national average for decades when the steel and aluminum industries were clicking along nicely... for example, Alabama had 20% representation in 1983. My dad worked for the Alabama AFL-CIO. Union membership in other southern states is far lower. Get your facts straight.



Edited 1 time(s). Last edit at 03/31/17 17:44 by ctillnc.