Buy America: How new policies will impact Hornell Alstom, US rail industry

George Kels started his career at Hornell Alstom in 2005 but was laid off several years later as contracts were fulfilled and work dried up.

He returned in 2014 as Alstom began targeting a bid for the first high-speed rail cars manufactured in the U.S. Alstom won that contract from Amtrak in 2016, and the Hornell plant has been humming with activity ever since.

“They’re proud of what they do,” Kels said of the Hornell workforce. “You can see that in the cars that sit around the facility.”

On Tuesday, Senate Majority Leader Chuck Schumer and U.S. Department of Transportation Under Secretary Carlos Monje Jr. visited the Alstom plant to highlight how recent legislation could keep the good times rolling in the Maple City.

Here’s what you need to know.

How could recent federal legislation impact Alstom?

Schumer said the Bipartisan Infrastructure Investment & Jobs Law marks the nation’s largest investment in passenger rail since the creation of Amtrak, with over $66 billion in new funding.

The investment could lead to new opportunities for Alstom’s rail car manufacturing operation. The legislation included $16 billion for Amtrak to modernize its national network, including the procurement of new rail cars. Another $30 billion was earmarked to modernize the Northeast Corridor traveled by the high-speed Acela cars produced in Hornell.

The infrastructure bill also included $12 billion in competitive grants for states to expand their intercity passenger rail networks, like Chicago’s Metra system. Alstom won a contract in 2021 to build up to 500 commuter rail cars for Metra. The company built a new 135,000 square-foot manufacturing facility on Shawmut Park Drive to facilitate the order.

The operation could position Hornell to win similar contracts in the future, positioning the workforce for longterm security.

“If you want to build or upgrade a new rail system in America, you have to buy American-made trains,” said Schumer. “As one of the only modern rail car manufacturers in the U.S., that means coming here to places like Alstom in Hornell and building in the Southern Tier.”

More: New Alstom plant to send hundreds of rail cars to Chicago. What does that mean for Hornell?

More: NY child sends Biden drawing of Amtrak train built in Hornell. See the art and his reply

A shift toward ‘Buy America’ in the rail industry

The infrastructure legislation included requirements that will ensure its investments create jobs on U.S. soil. The legislation is already making an impact, said Alstom's Americas President and CEO Michael Keroullé.

Keroullé credited the Buy America policy with strengthening Alstom’s Hornell operation, now the largest passenger rail manufacturing plant in the U.S. Alstom previously invested $66 million to support the Acela project, creating more than 400 jobs in Hornell and 750 overall.

The project has also boosted local suppliers. The seats on the Acela are made in nearby Wayland, while Hornell companies like TTA supply critical parts.

“Over 60% of the value of the high speed trains flow to suppliers,” said Keroullé. “We have invested close to $600 million in 250 American suppliers.”

Alstom’s Americas leader also noted many other European companies have invested in U.S. facilities and operations to meet the Buy America guidelines.

“Hornell should be the hub for America’s passenger rail future,” said Schumer. “There’s good reason why Alstom should be excited about this Bipartisan Infrastructure law and all the projects it’s spurring because we strengthened the Buy America provisions.

"In the past, the stuff wasn’t made here. All these good paying jobs went overseas, even though our taxpayers were paying their dollars for it. That’s not happening anymore.”

More: Made in Hornell: Look inside the new high-speed Acela cars built by Alstom

Hornell, Alstom in the spotlight

Officials said Monje is the highest-ranking federal official to ever visit Alstom’s Hornell facility. Monje serves under Transportation Secretary Pete Buttigieg.

Monje said billions more in grants will be available this year to support American rail improvements and domestic manufacturing.

“We have an opportunity to grow a safer, cleaner, and more equitable rail system, and one that brings world-class passenger rail to more communities across the country thanks to historic rail funding in the Bipartisan Infrastructure Law” Monje said.

This article originally appeared on The Evening Tribune: Buy America: New policies impact Hornell Alstom, US rail industry