In Ohio, Promises Of Change Ring Hollow

R

Raymond

Guest
In Ohio, Promises Of Change Ring Hollow

Washington Post: Candidates Face A Scarred Economic Landscape In A
State With Thousands Of Jobs Lost

Ohio has lost more than 200,000 manufacturing jobs since 2000.

| Page 1 of 2
TOLEDO, Ohio., Feb. 24, 2008

Washingtonpost.com) This story was written by Michael A. Fletcher.

--------------------------------------------------------------------------------
The Ford plant in nearby Maumee, where workers stamped out automobile
fenders and dash panels, will close this year. Johnson Controls, which
for years made seats for the iconic Jeeps that are assembled here,
recently lost that contract to a firm in India. And American Standard
is closing its century-old plumbing fixtures plant, eliminating the
remaining 165 manufacturing jobs that paid as much as $19 an hour.

It is a common story throughout Ohio, which has lost more than 200,000
manufacturing jobs since 2000. "Manufacturing is getting its head
handed to it around here," said Thomas J. Joseph, business manager of
Plumbers and Steamfitters Local 50, which covers northwest Ohio.

It is also a story the two Democratic presidential candidates are
promising to change. As Ohio's pivotal March 4 primary approaches,
Barack Obama and Hillary Rodham Clinton have each called for
significant infrastructure investment, development of alternative
energy and other "green-collar" jobs, while promising to toughen
environmental and labor standards that accompany free trade deals.

Those ideas are welcome here in heavily unionized and heavily
Democratic northwest Ohio, but at the same time, no one seems to
believe they go far enough to reverse the powerful tide of
globalization that many blame for the constant manufacturing job
losses.

"They identify with the situation, but they don't do anything about
it," said Rep. Marcy Kaptur, (D-Ohio), whose district includes Toledo.
"They are descriptive, not prescriptive. We want more detail and we
want it now."

This is the dilemma facing the Democratic candidates as they campaign
in Ohio's scarred economic landscape. The problems confronting places
like Toledo are so deep and complex that there may not be answers that
are both viable and popular.

Infrastructure investment could help stem the floodwaters that
regularly overwhelm riverbanks after heavy rains and rebuild Toledo's
rutted roads and provide more jobs. Developing alternative energy
meshes with the vision of local officials who tout the region as a
hotbed of renewable energy technology.

Both candidates said they would eliminate tax breaks for companies
that send jobs overseas and use the money for programs to help
displaced workers. Many here are up in arms about what they think is
an unfair trade and worldwide business environment. But short of
erecting trade barriers that many economists and business leaders say
would be self-defeating, no one seems to know what to do - including
Obama and Clinton.

"To get elected, you have to appeal to everybody. But it is hard to
say this makes a lot of sense. If you don't figure out how to engage
in the world's economy in today's world, you're kidding yourself,"
said Thomas E. Brady, president of Plastic Technologies, a suburban
Toledo firm that designs and oversees the manufacturing of containers
for such products as soda to laundry detergent. "The auto industry
simply can't afford to pay people $28 an hour plus benefits anymore."

Brady, a board member of the Regional Growth Partnership, a privately
funded economic development group in Toledo, said the prescription for
a secure economic future lies in innovative technology and education -
a view that Obama and Clinton endorse.

But the question is how to get there. The Toledo metropolitan area's
unemployment rate has dipped below 6 percent only once in the past 20
years, and is now 6.4 percent - 1.5 points above the national rate.
Median home prices here barely top $100,000, yet the city is in the
top 20 in the nation in number of foreclosures. Even a bright spot is
the result of a downside. One of the fastest-growing segments in the
local economy has been warehousing, where employment grew 40 percent
in the past year - but that is largely because of the conversion of
vacant factories into storage space.

Both the Clinton and Obama economic plans offer protections to these
struggling working-class voters. They would repeal tax cuts for upper-
income Americans, extend the cuts for the middle class and offer tax
credits to help families pay for college.

Especially important in Ohio, both Democrats have foreclosure relief
plans. Obama's offers $10 billion in bonds to help homeowners avoid
foreclosure. He also would give a tax credit to struggling homeowners
to cover 10 percent of the interest on their mortgages each year.
Clinton would temporarily freeze foreclosures and interest rates on
adjustable rate mortgages held by people with poor credit.

But for all the promises and proposals, Toledo's economic problems
have causes that the candidates have been unable to address.

"While you many be able to slow some things down, the long-term
interests of the region are going to have to be linked to developing a
competitive position in the global economy," said Daniel M. Johnson, a
University of Toledo professor of public policy and economic
development. "We've got both offense and defense to play here."

Advances in manufacturing technology have made it possible to produce
and export more products with fewer workers. Even firms that are doing
well, such as glass maker Libbey, are growing more rapidly abroad than
at home. While there is little chance that Libbey will leave Toledo,
there is also little chance it will expand here in the near future.
But the company recently opened a new plant in China.

Instant communication and cheaper shipping have made worldwide
business easier. Also, businesses are wary of locating here because of
the high cost of labor, which is an outgrowth of the strong union
presence. Manufacturing workers here earn an average of $68,000 a
year, according to Moody's Economy.com.

Continued

1 | 2

http://www.cbsnews.com/stories/2008...main3869507.shtml?source=RSSattr=HOME_3869507
 
In Ohio, Promises Of Change Ring Hollow

Washington Post: Candidates Face A Scarred Economic Landscape In A
State With Thousands Of Jobs Lost

Ohio has lost more than 200,000 manufacturing jobs since 2000.

| Page 1 of 2
TOLEDO, Ohio., Feb. 24, 2008

Washingtonpost.com) This story was written by Michael A. Fletcher.

--------------------------------------------------------------------------------
The Ford plant in nearby Maumee, where workers stamped out automobile
fenders and dash panels, will close this year. Johnson Controls, which
for years made seats for the iconic Jeeps that are assembled here,
recently lost that contract to a firm in India. And American Standard
is closing its century-old plumbing fixtures plant, eliminating the
remaining 165 manufacturing jobs that paid as much as $19 an hour.

It is a common story throughout Ohio, which has lost more than 200,000
manufacturing jobs since 2000. "Manufacturing is getting its head
handed to it around here," said Thomas J. Joseph, business manager of
Plumbers and Steamfitters Local 50, which covers northwest Ohio.

It is also a story the two Democratic presidential candidates are
promising to change. As Ohio's pivotal March 4 primary approaches,
Barack Obama and Hillary Rodham Clinton have each called for
significant infrastructure investment, development of alternative
energy and other "green-collar" jobs, while promising to toughen
environmental and labor standards that accompany free trade deals.

Those ideas are welcome here in heavily unionized and heavily
Democratic northwest Ohio, but at the same time, no one seems to
believe they go far enough to reverse the powerful tide of
globalization that many blame for the constant manufacturing job
losses.

"They identify with the situation, but they don't do anything about
it," said Rep. Marcy Kaptur, (D-Ohio), whose district includes Toledo.
"They are descriptive, not prescriptive. We want more detail and we
want it now."

This is the dilemma facing the Democratic candidates as they campaign
in Ohio's scarred economic landscape. The problems confronting places
like Toledo are so deep and complex that there may not be answers that
are both viable and popular.

Infrastructure investment could help stem the floodwaters that
regularly overwhelm riverbanks after heavy rains and rebuild Toledo's
rutted roads and provide more jobs. Developing alternative energy
meshes with the vision of local officials who tout the region as a
hotbed of renewable energy technology.

Both candidates said they would eliminate tax breaks for companies
that send jobs overseas and use the money for programs to help
displaced workers. Many here are up in arms about what they think is
an unfair trade and worldwide business environment. But short of
erecting trade barriers that many economists and business leaders say
would be self-defeating, no one seems to know what to do - including
Obama and Clinton.

"To get elected, you have to appeal to everybody. But it is hard to
say this makes a lot of sense. If you don't figure out how to engage
in the world's economy in today's world, you're kidding yourself,"
said Thomas E. Brady, president of Plastic Technologies, a suburban
Toledo firm that designs and oversees the manufacturing of containers
for such products as soda to laundry detergent. "The auto industry
simply can't afford to pay people $28 an hour plus benefits anymore."

Brady, a board member of the Regional Growth Partnership, a privately
funded economic development group in Toledo, said the prescription for
a secure economic future lies in innovative technology and education -
a view that Obama and Clinton endorse.

But the question is how to get there. The Toledo metropolitan area's
unemployment rate has dipped below 6 percent only once in the past 20
years, and is now 6.4 percent - 1.5 points above the national rate.
Median home prices here barely top $100,000, yet the city is in the
top 20 in the nation in number of foreclosures. Even a bright spot is
the result of a downside. One of the fastest-growing segments in the
local economy has been warehousing, where employment grew 40 percent
in the past year - but that is largely because of the conversion of
vacant factories into storage space.

Both the Clinton and Obama economic plans offer protections to these
struggling working-class voters. They would repeal tax cuts for upper-
income Americans, extend the cuts for the middle class and offer tax
credits to help families pay for college.

Especially important in Ohio, both Democrats have foreclosure relief
plans. Obama's offers $10 billion in bonds to help homeowners avoid
foreclosure. He also would give a tax credit to struggling homeowners
to cover 10 percent of the interest on their mortgages each year.
Clinton would temporarily freeze foreclosures and interest rates on
adjustable rate mortgages held by people with poor credit.

But for all the promises and proposals, Toledo's economic problems
have causes that the candidates have been unable to address.

"While you many be able to slow some things down, the long-term
interests of the region are going to have to be linked to developing a
competitive position in the global economy," said Daniel M. Johnson, a
University of Toledo professor of public policy and economic
development. "We've got both offense and defense to play here."

Advances in manufacturing technology have made it possible to produce
and export more products with fewer workers. Even firms that are doing
well, such as glass maker Libbey, are growing more rapidly abroad than
at home. While there is little chance that Libbey will leave Toledo,
there is also little chance it will expand here in the near future.
But the company recently opened a new plant in China.

Instant communication and cheaper shipping have made worldwide
business easier. Also, businesses are wary of locating here because of
the high cost of labor, which is an outgrowth of the strong union
presence. Manufacturing workers here earn an average of $68,000 a
year, according to Moody's Economy.com.

Continued

1 | 2

http://www.cbsnews.com/stories/2008...main3869507.shtml?source=RSSattr=HOME_3869507
 
In Ohio, Promises Of Change Ring Hollow

Washington Post: Candidates Face A Scarred Economic Landscape In A
State With Thousands Of Jobs Lost

Ohio has lost more than 200,000 manufacturing jobs since 2000.

| Page 1 of 2
TOLEDO, Ohio., Feb. 24, 2008

Washingtonpost.com) This story was written by Michael A. Fletcher.

--------------------------------------------------------------------------------
The Ford plant in nearby Maumee, where workers stamped out automobile
fenders and dash panels, will close this year. Johnson Controls, which
for years made seats for the iconic Jeeps that are assembled here,
recently lost that contract to a firm in India. And American Standard
is closing its century-old plumbing fixtures plant, eliminating the
remaining 165 manufacturing jobs that paid as much as $19 an hour.

It is a common story throughout Ohio, which has lost more than 200,000
manufacturing jobs since 2000. "Manufacturing is getting its head
handed to it around here," said Thomas J. Joseph, business manager of
Plumbers and Steamfitters Local 50, which covers northwest Ohio.

It is also a story the two Democratic presidential candidates are
promising to change. As Ohio's pivotal March 4 primary approaches,
Barack Obama and Hillary Rodham Clinton have each called for
significant infrastructure investment, development of alternative
energy and other "green-collar" jobs, while promising to toughen
environmental and labor standards that accompany free trade deals.

Those ideas are welcome here in heavily unionized and heavily
Democratic northwest Ohio, but at the same time, no one seems to
believe they go far enough to reverse the powerful tide of
globalization that many blame for the constant manufacturing job
losses.

"They identify with the situation, but they don't do anything about
it," said Rep. Marcy Kaptur, (D-Ohio), whose district includes Toledo.
"They are descriptive, not prescriptive. We want more detail and we
want it now."

This is the dilemma facing the Democratic candidates as they campaign
in Ohio's scarred economic landscape. The problems confronting places
like Toledo are so deep and complex that there may not be answers that
are both viable and popular.

Infrastructure investment could help stem the floodwaters that
regularly overwhelm riverbanks after heavy rains and rebuild Toledo's
rutted roads and provide more jobs. Developing alternative energy
meshes with the vision of local officials who tout the region as a
hotbed of renewable energy technology.

Both candidates said they would eliminate tax breaks for companies
that send jobs overseas and use the money for programs to help
displaced workers. Many here are up in arms about what they think is
an unfair trade and worldwide business environment. But short of
erecting trade barriers that many economists and business leaders say
would be self-defeating, no one seems to know what to do - including
Obama and Clinton.

"To get elected, you have to appeal to everybody. But it is hard to
say this makes a lot of sense. If you don't figure out how to engage
in the world's economy in today's world, you're kidding yourself,"
said Thomas E. Brady, president of Plastic Technologies, a suburban
Toledo firm that designs and oversees the manufacturing of containers
for such products as soda to laundry detergent. "The auto industry
simply can't afford to pay people $28 an hour plus benefits anymore."

Brady, a board member of the Regional Growth Partnership, a privately
funded economic development group in Toledo, said the prescription for
a secure economic future lies in innovative technology and education -
a view that Obama and Clinton endorse.

But the question is how to get there. The Toledo metropolitan area's
unemployment rate has dipped below 6 percent only once in the past 20
years, and is now 6.4 percent - 1.5 points above the national rate.
Median home prices here barely top $100,000, yet the city is in the
top 20 in the nation in number of foreclosures. Even a bright spot is
the result of a downside. One of the fastest-growing segments in the
local economy has been warehousing, where employment grew 40 percent
in the past year - but that is largely because of the conversion of
vacant factories into storage space.

Both the Clinton and Obama economic plans offer protections to these
struggling working-class voters. They would repeal tax cuts for upper-
income Americans, extend the cuts for the middle class and offer tax
credits to help families pay for college.

Especially important in Ohio, both Democrats have foreclosure relief
plans. Obama's offers $10 billion in bonds to help homeowners avoid
foreclosure. He also would give a tax credit to struggling homeowners
to cover 10 percent of the interest on their mortgages each year.
Clinton would temporarily freeze foreclosures and interest rates on
adjustable rate mortgages held by people with poor credit.

But for all the promises and proposals, Toledo's economic problems
have causes that the candidates have been unable to address.

"While you many be able to slow some things down, the long-term
interests of the region are going to have to be linked to developing a
competitive position in the global economy," said Daniel M. Johnson, a
University of Toledo professor of public policy and economic
development. "We've got both offense and defense to play here."

Advances in manufacturing technology have made it possible to produce
and export more products with fewer workers. Even firms that are doing
well, such as glass maker Libbey, are growing more rapidly abroad than
at home. While there is little chance that Libbey will leave Toledo,
there is also little chance it will expand here in the near future.
But the company recently opened a new plant in China.

Instant communication and cheaper shipping have made worldwide
business easier. Also, businesses are wary of locating here because of
the high cost of labor, which is an outgrowth of the strong union
presence. Manufacturing workers here earn an average of $68,000 a
year, according to Moody's Economy.com.

Continued

1 | 2

http://www.cbsnews.com/stories/2008...main3869507.shtml?source=RSSattr=HOME_3869507
 
On Feb 24, 5:27�pm, Raymond <Bluerhy...@aol.com> wrote:
> In Ohio, Promises Of Change Ring Hollow
>
> Washington Post: Candidates Face A Scarred Economic Landscape In A
> State With Thousands Of Jobs Lost
>
> Ohio has lost more than 200,000 manufacturing jobs since 2000.
>
> | Page 1 of 2
> TOLEDO, Ohio., Feb. 24, 2008
>
> Washingtonpost.com) This story was written by Michael A. Fletcher.
>
> ---------------------------------------------------------------------------�-----
> The Ford plant in nearby Maumee, where workers stamped out automobile
> fenders and dash panels, will close this year. Johnson Controls, which
> for years made seats for the iconic Jeeps that are assembled here,
> recently lost that contract to a firm in India. And American Standard
> is closing its century-old plumbing fixtures plant, eliminating the
> remaining 165 manufacturing jobs that paid as much as $19 an hour.
>
> It is a common story throughout Ohio, which has lost more than 200,000
> manufacturing jobs since 2000. "Manufacturing is getting its head
> handed to it around here," said Thomas J. Joseph, business manager of
> Plumbers and Steamfitters Local 50, which covers northwest Ohio.
>
> It is also a story the two Democratic presidential candidates are
> promising to change. As Ohio's pivotal March 4 primary approaches,
> Barack Obama and Hillary Rodham Clinton have each called for
> significant infrastructure investment, development of alternative
> energy and other "green-collar" jobs, while promising to toughen
> environmental and labor standards that accompany free trade deals.
>
> Those ideas are welcome here in heavily unionized and heavily
> Democratic northwest Ohio, but at the same time, no one seems to
> believe they go far enough to reverse the powerful tide of
> globalization that many blame for the constant manufacturing job
> losses.
>
> "They identify with the situation, but they don't do anything about
> it," said Rep. Marcy Kaptur, (D-Ohio), whose district includes Toledo.
> "They are descriptive, not prescriptive. We want more detail and we
> want it now."
>
> This is the dilemma facing the Democratic candidates as they campaign
> in Ohio's scarred economic landscape. The problems confronting places
> like Toledo are so deep and complex that there may not be answers that
> are both viable and popular.
>
> Infrastructure investment could help stem the floodwaters that
> regularly overwhelm riverbanks after heavy rains and rebuild Toledo's
> rutted roads and provide more jobs. Developing alternative energy
> meshes with the vision of local officials who tout the region as a
> hotbed of renewable energy technology.
>
> Both candidates said they would eliminate tax breaks for companies
> that send jobs overseas and use the money for programs to help
> displaced workers. Many here are up in arms about what they think is
> an unfair trade and worldwide business environment. But short of
> erecting trade barriers that many economists and business leaders say
> would be self-defeating, no one seems to know what to do - including
> Obama and Clinton.
>
> "To get elected, you have to appeal to everybody. But it is hard to
> say this makes a lot of sense. If you don't figure out how to engage
> in the world's economy in today's world, you're kidding yourself,"
> said Thomas E. Brady, president of Plastic Technologies, a suburban
> Toledo firm that designs and oversees the manufacturing of containers
> for such products as soda to laundry detergent. "The auto industry
> simply can't afford to pay people $28 an hour plus benefits anymore."
>
> Brady, a board member of the Regional Growth Partnership, a privately
> funded economic development group in Toledo, said the prescription for
> a secure economic future lies in innovative technology and education -
> a view that Obama and Clinton endorse.
>
> But the question is how to get there. The Toledo metropolitan area's
> unemployment rate has dipped below 6 percent only once in the past 20
> years, and is now 6.4 percent - 1.5 points above the national rate.
> Median home prices here barely top $100,000, yet the city is in the
> top 20 in the nation in number of foreclosures. Even a bright spot is
> the result of a downside. One of the fastest-growing segments in the
> local economy has been warehousing, where employment grew 40 percent
> in the past year - but that is largely because of the conversion of
> vacant factories into storage space.
>
> Both the Clinton and Obama economic plans offer protections to these
> struggling working-class voters. They would repeal tax cuts for upper-
> income Americans, extend the cuts for the middle class and offer tax
> credits to help families pay for college.
>
> Especially important in Ohio, both Democrats have foreclosure relief
> plans. Obama's offers $10 billion in bonds to help homeowners avoid
> foreclosure. He also would give a tax credit to struggling homeowners
> to cover 10 percent of the interest on their mortgages each year.
> Clinton would temporarily freeze foreclosures and interest rates on
> adjustable rate mortgages held by people with poor credit.
>
> But for all the promises and proposals, Toledo's economic problems
> have causes that the candidates have been unable to address.
>
> "While you many be able to slow some things down, the long-term
> interests of the region are going to have to be linked to developing a
> competitive position in the global economy," said Daniel M. Johnson, a
> University of Toledo professor of public policy and economic
> development. "We've got both offense and defense to play here."
>
> Advances in manufacturing technology have made it possible to produce
> and export more products with fewer workers. Even firms that are doing
> well, such as glass maker Libbey, are growing more rapidly abroad than
> at home. While there is little chance that Libbey will leave Toledo,
> there is also little chance it will expand here in the near future.
> But the company recently opened a new plant in China.
>
> Instant communication and cheaper shipping have made worldwide
> business easier. Also, businesses are wary of locating here because of
> the high cost of labor, which is an outgrowth of the strong union
> presence. Manufacturing workers here earn an average of $68,000 a
> year, according to Moody's Economy.com.
>
> Continued
>
> �1 �| � 2
>
> http://www.cbsnews.com/stories/2008/02/24/politics/washingtonpost/mai...


Page II

Reinventing America's railroads

How to create jobs that cannot be exported

Most of the jobs that were lost to offshore countries will never
return until Americans become available as the cheapest workers on
earth. (may be sooner than we think) We need a president that can make
it worth while for corporations to stay here.

There are hundreds of ways to reinvent the American economy.
One way is to reinvent the answer to the airplane and terrorist
threats. Reinvent the railroad. We need rapid ground public and
freight transportation badly. It will create thousands of well
paying jobs and create a spin off that will create more jobs.

It may still be asked whether this perfected transportation tool will
have a role to play in future economic development," said Louis
Armand
of the railway industry in 1964. "There still persist people who
believe that the economy of modern nations can get along without
railways and that, as a consequence, railways ought to consider that
their job is to shrink, with the goal of disappearing entirely one of
these days."

Armand himself was not among the doubters. A wartime resistance hero
who went on to become director general of the French National
Railways, secretary general of the International Union of Railways
(UIC), and a member of the French Academy, Armand wrote 37 years ago
of the "railway use of cybernetics" (today, computerization) and the
role other modern technology would have to play in "plunging the
industry ahead toward audacious accomplishments."

But some of the basic questions posed by the world's best-known
railroader nearly half a century ago are still being asked in the
United States today: Where does the railway industry fit in,
economically, socially, politically? What does it need to do to
compete effectively as a transportation provider with those modes,
primarily highway and air, that garner the lion's share of public and
legislative attention?


Economically, times right now are tough. Business is down in just
about every sector. Growth capital is short or non-existent. But
despite all this, the industry is beginning to position itself to
claim a much larger share of the transportation marketplace than it
has had in many years. Gradually coming into focus is a fundamental
shift in public policy and perception toward rail transportation that
could pump billions of public dollars into the system. Equally as
important as new capital is a rethinking of business practices, a
reconsideration of traditional industry values and concepts, a change
in railroad culture-indeed, a "reinvention" of the industry.


A new source of capital


A key word, says Ike Evans, is "partnership." Partnerships will
certainly unlock many opportunities for the railroads. Union
Pacific's
chief describes the rapid growth of interline alliances, and speaks
of
the need for more partnering with highway carriers. Indeed, Evans
describes a railroad industry that may not need to "reinvent" itself
so much as it needs to more aggressively capitalize on its strengths.


Other railroad leaders are beginning to say that partnering in a
broader sense, and in ways that many in the industry may find
disagreeable, could unlock many more opportunities in the future.
What
they're talking about is federal subsidies to freight railroads-
subsidies that will create, in the words of Association of American
Railroads President and CEO Ed Hamberger, "the railroad equivalent of
the Interstate Highway System," a system that will support sustained
growth in both freight and passenger traffic. For example, the
infrastructure for operating higher speed short- and medium-haul
intercity passenger trains: It's owned, operated, and maintained by
freight railroads. Investing federal and state dollars to increase
the
frequency and speed of passenger trains without compromising the
integrity of freight service or safety-adding track, improving
signaling and train control systems, closing or improving highway/
rail
grade crossings-would cost a fraction of expanding an airport or
highway, and would certainly be environmentally wise.


Federal aid-two words that would have given some railroaders a heart
attack just a few years ago-may very well be the only way a capital-
intensive railroad industry that often doesn't earn its cost of
capital can remain alive and well. Burlington Northern and Santa Fe
President and CEO Matt Rose speaks for a growing number of
railroaders
when he says that "we're singing a different tune from the one we
have
sung in the past," and that "this is today's reality."


Rose has called attention to "breakthrough proposals" now moving
through Congress that would help railroads strengthen and expand
their
infrastructure. Legislation known as RIDE-21 in the House and RAIL-21
in the Senate would make $35 billion in low-interest loans available
to Class I's, regionals, and short lines. These bills would also
provide billions of dollars of funding for rail passenger projects,
many of which would benefit freight carriers by adding much-needed
capacity to existing rights-of-way. The Senate bill includes
authorization for $350 million per year for three years to upgrade
small railroads to handle 286,000-pound cars.


"These proposals recognize the need for more public/private
partnership initiatives to improve the nation's rail infrastructure
and to be responsive to concerns about traffic congestion, safety,
transportation flexibility, and economic development," says Rose.
"The
rail industry needs ongoing help with its infrastructure investments
to remain strong and competitive. Public policy dictates a sound rail
infrastructure for America so we can continue to be a strong economic
force globally."


Viewpoints on such legislation run the gamut of emotions-from strong
support to skeptical acceptance to outright indignation. But
regardless of whatever visceral reaction one experiences, the fact
remains that something needs to be done, and soon, to solve the
problem of revenue inadequacy. The indicators that support such
dramatic steps are clear. Matt Rose identifies them as such: "Over
the
past couple of years, railroad industry tonnage growth has
outstripped
revenue growth, and that trend is continuing. Similarly, until this
year, most real rail rates have steadily been declining. In 2001, the
industry has been able to take some prices up in the 2-3% range.
However, operating costs have risen at a faster rate due to
inflationary increases in wages and benefits, fuel prices, and the
cost of materials. We no longer can find big cost savings initiatives
to overcome these operating expense increases. We are not getting
sufficient dollars for what we are providing and we are no longer
able
to take costs out of the business at a faster rate than inflation."


Some of the industry's largest potential cost savings and growth
opportunities are already tied to legislative issues. One is the 4.3-
cent deficit reduction tax on each gallon of diesel fuel purchased.
Railroads and barge companies are the only transportation modes still
paying this tax. Repeal of it could save the railroads around $150
million a year. "We have come close to having this tax repealed,"
says
Rose, "but it hasn't happened for various reasons."


The greatest story never told


One reason behind the railroad industry's less-than-stellar track
record on Capitol Hill may be its "stealth" status with the general
taxpaying public and, by extension, those who represent its
interests.
"Railroads have been more successful over the years at blocking
harmful legislation than in getting favorable legislation approved,"
says Railway Age Contributing Editor Larry Kaufman. Adds long-time
supplier Craig Duchossois, CEO of Duchossois Industries, Inc., "With
rare exception, our industry and its leaders are unknown on Capitol
Hill, in contrast to truckers. It's time to speak up and get our act
together in a unified, meaningful manner. We've been out-lobbied for
years, and can no longer afford this tremendous competitive
disadvantage."


Many in the industry are beginning to realize that negative or
nonexistent public perception of railroads is a real hindrance to
progress, whether it be getting an important piece of legislation
passed or obtaining local support for an expansion project that will
bring more trains through town. After years of virtually ignoring
public relations, the Association of American Railroads is putting
together the first elements of what could become a large-scale public
awareness campaign. But getting the Class I's to commit to an
ambitious and potentially expensive media program will be a hard
sell,
especially since the direct benefits are hard to quantify.


Short-term, a one-minute television commercial extolling, say, the
environmental benefits of moving truck trailers and containers by
rail
won't add to the bottom line. Long-term, the public's repeated
exposure to positive messages about rail transportation could work to
the industry's benefit. As Matt Rose said recently, "we are examining
every part of our business and are beginning to take steps that are
not designed to make the next quarter look good to Wall Street, but
to
make the future successful for each member of our community,
including
all of our shareholders."


Reaching out to the public-the customers of the railroad's customers-
should be part of that.


Whose track is it, anyway?


Drinking from the deep federal transportation trough won't come
without at least a few strings attached. The biggest string-a noose,
really, to opponents of federal aid-is the "O word": open access
(defined by some as the "F word": forced access), but more accurately
termed "competitive access." Then there's the "R word": reregulation.
Will competitive access and reregulation scenarios come to pass? Will
railroads be forced to open their rights-of-way to anyone who wants
to
run trains in exchange for government dollars? Will they lose some of
the freedoms of the Staggers Act? Probably not, at least not in as
ominous terms as some are portraying.


"The question of open access will always be with us," says Ray
Chambers, the railroad lobbyist leading the short line charge up
Capitol Hill. "But with only four major carriers, it's easier for
them
to work together to improve service, through alliances and other
means, to the point where open access is not an issue. Call it the
'private interstate highway approach,' where the target is getting
freight off the highways, not off other railroads."


"The railroads are lucky that the customer world isn't united," says
Larry Kaufman. "If the shippers ever agree on what they want, then
all
bets are off. Remember, companies like UPS are bigger than the entire
industry. Competitive access is not like abortion rights or gun
control. It's not one of those issues that Congress votes for on
principle, and Congress doesn't like to referee battles between
competing interests, particularly when both sides are PAC
contributors. It's really a commercial dispute, and the standard
Congressional response is, 'you people negotiate a deal and bring it
to us to codify.' That's why there were so many negotiations between
railroads and shippers, back when 4R and Staggers were on the table."


"Creativity before capital"


The most capital-intensive part of railroading is infrastructure. If
the railroads are to grow, they will have to move beyond merely
maintaining their track and structures to a state of good repair, and
add capacity. But even if federal and state dollars begin to flow,
railroad engineering departments will still need to exercise prudence
with their resources.


"We need to be constantly thinking of ways to solve issues without
always throwing capital dollars at the problem-in other words,
'creativity before capital,'" says American Railway Engineering and
Maintenance-of-way Association Senior Vice President Mike Armstrong.
"The goal is to avoid expenditures that do not add sufficient value
to
the operation of the railroad. As an industry we can help lower our
costs through standardization of material and equipment.


"This is easier said than done. We all take pride in our own
standards
that have served us well for many years. Fact is, however, we need to
move beyond the pride issue and consider development of common
standards."


Here, Armstrong, BNSF assistant vice president and chief engineer-
Southeast Operations, is talking things like a standard #20 turnout
design, standard concrete road crossing panels, a standard insulated
joint design, and standard concrete ballast deck bridge spans. "These
are but a few examples," he says. "There are also opportunities to
standardize pieces of production equipment. As an industry, we need
to
work with our suppliers and manufacturers and press to achieve longer
asset lives and reduce our overall life cycle costs."


Armstrong says that "there are ways to deal proactively with
maintenance issues and minimize capital expenditures." As examples,
he
cites selective replacement of turnout components that extends
overall
turnout life, drainage and subgrade repair work to prolong ballast
and
tie life, and scheduled rail defect testing to extend rail life. "The
ongoing challenge is to achieve a balance between the required
service
needs of the transportation department and the necessary level of
physical plant maintenance to meet those service needs," he says.


A new electronic world


Perhaps the most fundamental shift in how railroads conduct business
is their entry into the still-developing arena of electronic
commerce.
In the not-too-distant future, it may be possible for railroads,
their
customers, and their suppliers to conduct many types of transactions
on the Internet.


"The move into e-commerce is going to be tremendous for the rail
freight and rail transit industries," says Mike Monteferrante, senior
vice president of iRail.com. "On both the supplier and buyer sides,
there is going to be increasing pressure for all of us to be more
efficient, and to continue garnishing cost-saving concepts and ideas.
A prominent source for that will be the efficiencies of e-commerce.
In
addition to that, suppliers and transit authorities and railroads
need
to improve relationships and communication tools. E-commerce will
assist in that endeavor, bringing suppliers and buyers closer
together
in terms of their ability to work together to accomplish their
efficiency goals."


The objective of railroad/supplier e-commerce interfaces like
iRail.com and RailMarketplace.com, which involves UP, BNSF, Canadian
National, Canadian Pacific, and CSX Transportation, "is to enable
buyers and sellers of railroad parts, materials, and services to
reduce their costs and streamline administrative processes around
sourcing, procurement, demand planning, and inventory management,"
says CP Vice President-Purchasing Luigi Armano. "These benefits will
also accrue to suppliers, who will have access to a larger customer
base."


Will there be a limit as to the types of products and services that
can be procured online? Will e-commerce extend to complex
transactions
like locomotive and railcar leases? UP Executive Vice President Brad
King, referring to RailMarketplace.com, says "it will be possible to
source and procure any product and service. This is not to say,
however, that the railroads will replace all of their existing
sourcing and procurement processes immediately."


The same concept could apply to how a shipper selects a
transportation
product. That's one reason why UP, CSXT, CP, and Norfolk Southern
have
invested $1 billion in Arzoon, an Internet-based system that allows
transportation sourcing and logistics to be handled on a single
software platform.


"Shippers spend up to 20% of their revenues on logistics," says
Arzoon
CEO Farid Dibachi. "For large shippers, this can amount to millions
of
dollars. Shippers spend $35 billion annually using railroad services.
By comparison, they spend $95 billion on trucking services. A small
amount of that business moving from truck to rail will increase
railroad business by a significant percentage. The time has arrived
to
give shippers the means to compare rail transportation on an even
playing field with truckers." Using a system like Arzoon, which
"allows shippers to make an intelligent decision about what carrier
to
use," could bring more business back to the rails.

Another new age?

"Railwaymen love their occupation, but many have doubts about their
future," said Louis Armand in 1964. "These feelings are fortified
by . . . the often difficult financial performance of their
enterprise, exposing them to criticism by the poorly informed." But,
he said, "in well-informed quarters, an about-face is occurring in
favor of railways. . . . Is this enterprise-the most important in the
present-day world-condemned to extinction? Must it be looked upon as
something which played a big role in a certain period of history, but
which it will no longer play in the year 2000?"

The answer to Armand's questions, in Railway Age's opinion, is no.
"It
is the good fortune of railways to have little competition among
themselves," Armand said. "Thus they have every incentive to join
together in common effort in all areas."

Reinvention won't occur overnight. As many veterans in this industry
will tell you, change comes slowly, and not without a lot of
agonizing. But if the railway industry can work together to embrace
change, the 21st Century can certainly live up to its promise as
another new railway age.

http://www.railwayage.com/nov01/reinvent.html
 
On Feb 24, 5:27�pm, Raymond <Bluerhy...@aol.com> wrote:
> In Ohio, Promises Of Change Ring Hollow
>
> Washington Post: Candidates Face A Scarred Economic Landscape In A
> State With Thousands Of Jobs Lost
>
> Ohio has lost more than 200,000 manufacturing jobs since 2000.
>
> | Page 1 of 2
> TOLEDO, Ohio., Feb. 24, 2008
>
> Washingtonpost.com) This story was written by Michael A. Fletcher.
>
> ---------------------------------------------------------------------------�-----
> The Ford plant in nearby Maumee, where workers stamped out automobile
> fenders and dash panels, will close this year. Johnson Controls, which
> for years made seats for the iconic Jeeps that are assembled here,
> recently lost that contract to a firm in India. And American Standard
> is closing its century-old plumbing fixtures plant, eliminating the
> remaining 165 manufacturing jobs that paid as much as $19 an hour.
>
> It is a common story throughout Ohio, which has lost more than 200,000
> manufacturing jobs since 2000. "Manufacturing is getting its head
> handed to it around here," said Thomas J. Joseph, business manager of
> Plumbers and Steamfitters Local 50, which covers northwest Ohio.
>
> It is also a story the two Democratic presidential candidates are
> promising to change. As Ohio's pivotal March 4 primary approaches,
> Barack Obama and Hillary Rodham Clinton have each called for
> significant infrastructure investment, development of alternative
> energy and other "green-collar" jobs, while promising to toughen
> environmental and labor standards that accompany free trade deals.
>
> Those ideas are welcome here in heavily unionized and heavily
> Democratic northwest Ohio, but at the same time, no one seems to
> believe they go far enough to reverse the powerful tide of
> globalization that many blame for the constant manufacturing job
> losses.
>
> "They identify with the situation, but they don't do anything about
> it," said Rep. Marcy Kaptur, (D-Ohio), whose district includes Toledo.
> "They are descriptive, not prescriptive. We want more detail and we
> want it now."
>
> This is the dilemma facing the Democratic candidates as they campaign
> in Ohio's scarred economic landscape. The problems confronting places
> like Toledo are so deep and complex that there may not be answers that
> are both viable and popular.
>
> Infrastructure investment could help stem the floodwaters that
> regularly overwhelm riverbanks after heavy rains and rebuild Toledo's
> rutted roads and provide more jobs. Developing alternative energy
> meshes with the vision of local officials who tout the region as a
> hotbed of renewable energy technology.
>
> Both candidates said they would eliminate tax breaks for companies
> that send jobs overseas and use the money for programs to help
> displaced workers. Many here are up in arms about what they think is
> an unfair trade and worldwide business environment. But short of
> erecting trade barriers that many economists and business leaders say
> would be self-defeating, no one seems to know what to do - including
> Obama and Clinton.
>
> "To get elected, you have to appeal to everybody. But it is hard to
> say this makes a lot of sense. If you don't figure out how to engage
> in the world's economy in today's world, you're kidding yourself,"
> said Thomas E. Brady, president of Plastic Technologies, a suburban
> Toledo firm that designs and oversees the manufacturing of containers
> for such products as soda to laundry detergent. "The auto industry
> simply can't afford to pay people $28 an hour plus benefits anymore."
>
> Brady, a board member of the Regional Growth Partnership, a privately
> funded economic development group in Toledo, said the prescription for
> a secure economic future lies in innovative technology and education -
> a view that Obama and Clinton endorse.
>
> But the question is how to get there. The Toledo metropolitan area's
> unemployment rate has dipped below 6 percent only once in the past 20
> years, and is now 6.4 percent - 1.5 points above the national rate.
> Median home prices here barely top $100,000, yet the city is in the
> top 20 in the nation in number of foreclosures. Even a bright spot is
> the result of a downside. One of the fastest-growing segments in the
> local economy has been warehousing, where employment grew 40 percent
> in the past year - but that is largely because of the conversion of
> vacant factories into storage space.
>
> Both the Clinton and Obama economic plans offer protections to these
> struggling working-class voters. They would repeal tax cuts for upper-
> income Americans, extend the cuts for the middle class and offer tax
> credits to help families pay for college.
>
> Especially important in Ohio, both Democrats have foreclosure relief
> plans. Obama's offers $10 billion in bonds to help homeowners avoid
> foreclosure. He also would give a tax credit to struggling homeowners
> to cover 10 percent of the interest on their mortgages each year.
> Clinton would temporarily freeze foreclosures and interest rates on
> adjustable rate mortgages held by people with poor credit.
>
> But for all the promises and proposals, Toledo's economic problems
> have causes that the candidates have been unable to address.
>
> "While you many be able to slow some things down, the long-term
> interests of the region are going to have to be linked to developing a
> competitive position in the global economy," said Daniel M. Johnson, a
> University of Toledo professor of public policy and economic
> development. "We've got both offense and defense to play here."
>
> Advances in manufacturing technology have made it possible to produce
> and export more products with fewer workers. Even firms that are doing
> well, such as glass maker Libbey, are growing more rapidly abroad than
> at home. While there is little chance that Libbey will leave Toledo,
> there is also little chance it will expand here in the near future.
> But the company recently opened a new plant in China.
>
> Instant communication and cheaper shipping have made worldwide
> business easier. Also, businesses are wary of locating here because of
> the high cost of labor, which is an outgrowth of the strong union
> presence. Manufacturing workers here earn an average of $68,000 a
> year, according to Moody's Economy.com.
>
> Continued
>
> �1 �| � 2
>
> http://www.cbsnews.com/stories/2008/02/24/politics/washingtonpost/mai...


Page II

Reinventing America's railroads

How to create jobs that cannot be exported

Most of the jobs that were lost to offshore countries will never
return until Americans become available as the cheapest workers on
earth. (may be sooner than we think) We need a president that can make
it worth while for corporations to stay here.

There are hundreds of ways to reinvent the American economy.
One way is to reinvent the answer to the airplane and terrorist
threats. Reinvent the railroad. We need rapid ground public and
freight transportation badly. It will create thousands of well
paying jobs and create a spin off that will create more jobs.

It may still be asked whether this perfected transportation tool will
have a role to play in future economic development," said Louis
Armand
of the railway industry in 1964. "There still persist people who
believe that the economy of modern nations can get along without
railways and that, as a consequence, railways ought to consider that
their job is to shrink, with the goal of disappearing entirely one of
these days."

Armand himself was not among the doubters. A wartime resistance hero
who went on to become director general of the French National
Railways, secretary general of the International Union of Railways
(UIC), and a member of the French Academy, Armand wrote 37 years ago
of the "railway use of cybernetics" (today, computerization) and the
role other modern technology would have to play in "plunging the
industry ahead toward audacious accomplishments."

But some of the basic questions posed by the world's best-known
railroader nearly half a century ago are still being asked in the
United States today: Where does the railway industry fit in,
economically, socially, politically? What does it need to do to
compete effectively as a transportation provider with those modes,
primarily highway and air, that garner the lion's share of public and
legislative attention?


Economically, times right now are tough. Business is down in just
about every sector. Growth capital is short or non-existent. But
despite all this, the industry is beginning to position itself to
claim a much larger share of the transportation marketplace than it
has had in many years. Gradually coming into focus is a fundamental
shift in public policy and perception toward rail transportation that
could pump billions of public dollars into the system. Equally as
important as new capital is a rethinking of business practices, a
reconsideration of traditional industry values and concepts, a change
in railroad culture-indeed, a "reinvention" of the industry.


A new source of capital


A key word, says Ike Evans, is "partnership." Partnerships will
certainly unlock many opportunities for the railroads. Union
Pacific's
chief describes the rapid growth of interline alliances, and speaks
of
the need for more partnering with highway carriers. Indeed, Evans
describes a railroad industry that may not need to "reinvent" itself
so much as it needs to more aggressively capitalize on its strengths.


Other railroad leaders are beginning to say that partnering in a
broader sense, and in ways that many in the industry may find
disagreeable, could unlock many more opportunities in the future.
What
they're talking about is federal subsidies to freight railroads-
subsidies that will create, in the words of Association of American
Railroads President and CEO Ed Hamberger, "the railroad equivalent of
the Interstate Highway System," a system that will support sustained
growth in both freight and passenger traffic. For example, the
infrastructure for operating higher speed short- and medium-haul
intercity passenger trains: It's owned, operated, and maintained by
freight railroads. Investing federal and state dollars to increase
the
frequency and speed of passenger trains without compromising the
integrity of freight service or safety-adding track, improving
signaling and train control systems, closing or improving highway/
rail
grade crossings-would cost a fraction of expanding an airport or
highway, and would certainly be environmentally wise.


Federal aid-two words that would have given some railroaders a heart
attack just a few years ago-may very well be the only way a capital-
intensive railroad industry that often doesn't earn its cost of
capital can remain alive and well. Burlington Northern and Santa Fe
President and CEO Matt Rose speaks for a growing number of
railroaders
when he says that "we're singing a different tune from the one we
have
sung in the past," and that "this is today's reality."


Rose has called attention to "breakthrough proposals" now moving
through Congress that would help railroads strengthen and expand
their
infrastructure. Legislation known as RIDE-21 in the House and RAIL-21
in the Senate would make $35 billion in low-interest loans available
to Class I's, regionals, and short lines. These bills would also
provide billions of dollars of funding for rail passenger projects,
many of which would benefit freight carriers by adding much-needed
capacity to existing rights-of-way. The Senate bill includes
authorization for $350 million per year for three years to upgrade
small railroads to handle 286,000-pound cars.


"These proposals recognize the need for more public/private
partnership initiatives to improve the nation's rail infrastructure
and to be responsive to concerns about traffic congestion, safety,
transportation flexibility, and economic development," says Rose.
"The
rail industry needs ongoing help with its infrastructure investments
to remain strong and competitive. Public policy dictates a sound rail
infrastructure for America so we can continue to be a strong economic
force globally."


Viewpoints on such legislation run the gamut of emotions-from strong
support to skeptical acceptance to outright indignation. But
regardless of whatever visceral reaction one experiences, the fact
remains that something needs to be done, and soon, to solve the
problem of revenue inadequacy. The indicators that support such
dramatic steps are clear. Matt Rose identifies them as such: "Over
the
past couple of years, railroad industry tonnage growth has
outstripped
revenue growth, and that trend is continuing. Similarly, until this
year, most real rail rates have steadily been declining. In 2001, the
industry has been able to take some prices up in the 2-3% range.
However, operating costs have risen at a faster rate due to
inflationary increases in wages and benefits, fuel prices, and the
cost of materials. We no longer can find big cost savings initiatives
to overcome these operating expense increases. We are not getting
sufficient dollars for what we are providing and we are no longer
able
to take costs out of the business at a faster rate than inflation."


Some of the industry's largest potential cost savings and growth
opportunities are already tied to legislative issues. One is the 4.3-
cent deficit reduction tax on each gallon of diesel fuel purchased.
Railroads and barge companies are the only transportation modes still
paying this tax. Repeal of it could save the railroads around $150
million a year. "We have come close to having this tax repealed,"
says
Rose, "but it hasn't happened for various reasons."


The greatest story never told


One reason behind the railroad industry's less-than-stellar track
record on Capitol Hill may be its "stealth" status with the general
taxpaying public and, by extension, those who represent its
interests.
"Railroads have been more successful over the years at blocking
harmful legislation than in getting favorable legislation approved,"
says Railway Age Contributing Editor Larry Kaufman. Adds long-time
supplier Craig Duchossois, CEO of Duchossois Industries, Inc., "With
rare exception, our industry and its leaders are unknown on Capitol
Hill, in contrast to truckers. It's time to speak up and get our act
together in a unified, meaningful manner. We've been out-lobbied for
years, and can no longer afford this tremendous competitive
disadvantage."


Many in the industry are beginning to realize that negative or
nonexistent public perception of railroads is a real hindrance to
progress, whether it be getting an important piece of legislation
passed or obtaining local support for an expansion project that will
bring more trains through town. After years of virtually ignoring
public relations, the Association of American Railroads is putting
together the first elements of what could become a large-scale public
awareness campaign. But getting the Class I's to commit to an
ambitious and potentially expensive media program will be a hard
sell,
especially since the direct benefits are hard to quantify.


Short-term, a one-minute television commercial extolling, say, the
environmental benefits of moving truck trailers and containers by
rail
won't add to the bottom line. Long-term, the public's repeated
exposure to positive messages about rail transportation could work to
the industry's benefit. As Matt Rose said recently, "we are examining
every part of our business and are beginning to take steps that are
not designed to make the next quarter look good to Wall Street, but
to
make the future successful for each member of our community,
including
all of our shareholders."


Reaching out to the public-the customers of the railroad's customers-
should be part of that.


Whose track is it, anyway?


Drinking from the deep federal transportation trough won't come
without at least a few strings attached. The biggest string-a noose,
really, to opponents of federal aid-is the "O word": open access
(defined by some as the "F word": forced access), but more accurately
termed "competitive access." Then there's the "R word": reregulation.
Will competitive access and reregulation scenarios come to pass? Will
railroads be forced to open their rights-of-way to anyone who wants
to
run trains in exchange for government dollars? Will they lose some of
the freedoms of the Staggers Act? Probably not, at least not in as
ominous terms as some are portraying.


"The question of open access will always be with us," says Ray
Chambers, the railroad lobbyist leading the short line charge up
Capitol Hill. "But with only four major carriers, it's easier for
them
to work together to improve service, through alliances and other
means, to the point where open access is not an issue. Call it the
'private interstate highway approach,' where the target is getting
freight off the highways, not off other railroads."


"The railroads are lucky that the customer world isn't united," says
Larry Kaufman. "If the shippers ever agree on what they want, then
all
bets are off. Remember, companies like UPS are bigger than the entire
industry. Competitive access is not like abortion rights or gun
control. It's not one of those issues that Congress votes for on
principle, and Congress doesn't like to referee battles between
competing interests, particularly when both sides are PAC
contributors. It's really a commercial dispute, and the standard
Congressional response is, 'you people negotiate a deal and bring it
to us to codify.' That's why there were so many negotiations between
railroads and shippers, back when 4R and Staggers were on the table."


"Creativity before capital"


The most capital-intensive part of railroading is infrastructure. If
the railroads are to grow, they will have to move beyond merely
maintaining their track and structures to a state of good repair, and
add capacity. But even if federal and state dollars begin to flow,
railroad engineering departments will still need to exercise prudence
with their resources.


"We need to be constantly thinking of ways to solve issues without
always throwing capital dollars at the problem-in other words,
'creativity before capital,'" says American Railway Engineering and
Maintenance-of-way Association Senior Vice President Mike Armstrong.
"The goal is to avoid expenditures that do not add sufficient value
to
the operation of the railroad. As an industry we can help lower our
costs through standardization of material and equipment.


"This is easier said than done. We all take pride in our own
standards
that have served us well for many years. Fact is, however, we need to
move beyond the pride issue and consider development of common
standards."


Here, Armstrong, BNSF assistant vice president and chief engineer-
Southeast Operations, is talking things like a standard #20 turnout
design, standard concrete road crossing panels, a standard insulated
joint design, and standard concrete ballast deck bridge spans. "These
are but a few examples," he says. "There are also opportunities to
standardize pieces of production equipment. As an industry, we need
to
work with our suppliers and manufacturers and press to achieve longer
asset lives and reduce our overall life cycle costs."


Armstrong says that "there are ways to deal proactively with
maintenance issues and minimize capital expenditures." As examples,
he
cites selective replacement of turnout components that extends
overall
turnout life, drainage and subgrade repair work to prolong ballast
and
tie life, and scheduled rail defect testing to extend rail life. "The
ongoing challenge is to achieve a balance between the required
service
needs of the transportation department and the necessary level of
physical plant maintenance to meet those service needs," he says.


A new electronic world


Perhaps the most fundamental shift in how railroads conduct business
is their entry into the still-developing arena of electronic
commerce.
In the not-too-distant future, it may be possible for railroads,
their
customers, and their suppliers to conduct many types of transactions
on the Internet.


"The move into e-commerce is going to be tremendous for the rail
freight and rail transit industries," says Mike Monteferrante, senior
vice president of iRail.com. "On both the supplier and buyer sides,
there is going to be increasing pressure for all of us to be more
efficient, and to continue garnishing cost-saving concepts and ideas.
A prominent source for that will be the efficiencies of e-commerce.
In
addition to that, suppliers and transit authorities and railroads
need
to improve relationships and communication tools. E-commerce will
assist in that endeavor, bringing suppliers and buyers closer
together
in terms of their ability to work together to accomplish their
efficiency goals."


The objective of railroad/supplier e-commerce interfaces like
iRail.com and RailMarketplace.com, which involves UP, BNSF, Canadian
National, Canadian Pacific, and CSX Transportation, "is to enable
buyers and sellers of railroad parts, materials, and services to
reduce their costs and streamline administrative processes around
sourcing, procurement, demand planning, and inventory management,"
says CP Vice President-Purchasing Luigi Armano. "These benefits will
also accrue to suppliers, who will have access to a larger customer
base."


Will there be a limit as to the types of products and services that
can be procured online? Will e-commerce extend to complex
transactions
like locomotive and railcar leases? UP Executive Vice President Brad
King, referring to RailMarketplace.com, says "it will be possible to
source and procure any product and service. This is not to say,
however, that the railroads will replace all of their existing
sourcing and procurement processes immediately."


The same concept could apply to how a shipper selects a
transportation
product. That's one reason why UP, CSXT, CP, and Norfolk Southern
have
invested $1 billion in Arzoon, an Internet-based system that allows
transportation sourcing and logistics to be handled on a single
software platform.


"Shippers spend up to 20% of their revenues on logistics," says
Arzoon
CEO Farid Dibachi. "For large shippers, this can amount to millions
of
dollars. Shippers spend $35 billion annually using railroad services.
By comparison, they spend $95 billion on trucking services. A small
amount of that business moving from truck to rail will increase
railroad business by a significant percentage. The time has arrived
to
give shippers the means to compare rail transportation on an even
playing field with truckers." Using a system like Arzoon, which
"allows shippers to make an intelligent decision about what carrier
to
use," could bring more business back to the rails.

Another new age?

"Railwaymen love their occupation, but many have doubts about their
future," said Louis Armand in 1964. "These feelings are fortified
by . . . the often difficult financial performance of their
enterprise, exposing them to criticism by the poorly informed." But,
he said, "in well-informed quarters, an about-face is occurring in
favor of railways. . . . Is this enterprise-the most important in the
present-day world-condemned to extinction? Must it be looked upon as
something which played a big role in a certain period of history, but
which it will no longer play in the year 2000?"

The answer to Armand's questions, in Railway Age's opinion, is no.
"It
is the good fortune of railways to have little competition among
themselves," Armand said. "Thus they have every incentive to join
together in common effort in all areas."

Reinvention won't occur overnight. As many veterans in this industry
will tell you, change comes slowly, and not without a lot of
agonizing. But if the railway industry can work together to embrace
change, the 21st Century can certainly live up to its promise as
another new railway age.

http://www.railwayage.com/nov01/reinvent.html
 
On Feb 24, 5:27�pm, Raymond <Bluerhy...@aol.com> wrote:
> In Ohio, Promises Of Change Ring Hollow
>
> Washington Post: Candidates Face A Scarred Economic Landscape In A
> State With Thousands Of Jobs Lost
>
> Ohio has lost more than 200,000 manufacturing jobs since 2000.
>
> | Page 1 of 2
> TOLEDO, Ohio., Feb. 24, 2008
>
> Washingtonpost.com) This story was written by Michael A. Fletcher.
>
> ---------------------------------------------------------------------------�-----
> The Ford plant in nearby Maumee, where workers stamped out automobile
> fenders and dash panels, will close this year. Johnson Controls, which
> for years made seats for the iconic Jeeps that are assembled here,
> recently lost that contract to a firm in India. And American Standard
> is closing its century-old plumbing fixtures plant, eliminating the
> remaining 165 manufacturing jobs that paid as much as $19 an hour.
>
> It is a common story throughout Ohio, which has lost more than 200,000
> manufacturing jobs since 2000. "Manufacturing is getting its head
> handed to it around here," said Thomas J. Joseph, business manager of
> Plumbers and Steamfitters Local 50, which covers northwest Ohio.
>
> It is also a story the two Democratic presidential candidates are
> promising to change. As Ohio's pivotal March 4 primary approaches,
> Barack Obama and Hillary Rodham Clinton have each called for
> significant infrastructure investment, development of alternative
> energy and other "green-collar" jobs, while promising to toughen
> environmental and labor standards that accompany free trade deals.
>
> Those ideas are welcome here in heavily unionized and heavily
> Democratic northwest Ohio, but at the same time, no one seems to
> believe they go far enough to reverse the powerful tide of
> globalization that many blame for the constant manufacturing job
> losses.
>
> "They identify with the situation, but they don't do anything about
> it," said Rep. Marcy Kaptur, (D-Ohio), whose district includes Toledo.
> "They are descriptive, not prescriptive. We want more detail and we
> want it now."
>
> This is the dilemma facing the Democratic candidates as they campaign
> in Ohio's scarred economic landscape. The problems confronting places
> like Toledo are so deep and complex that there may not be answers that
> are both viable and popular.
>
> Infrastructure investment could help stem the floodwaters that
> regularly overwhelm riverbanks after heavy rains and rebuild Toledo's
> rutted roads and provide more jobs. Developing alternative energy
> meshes with the vision of local officials who tout the region as a
> hotbed of renewable energy technology.
>
> Both candidates said they would eliminate tax breaks for companies
> that send jobs overseas and use the money for programs to help
> displaced workers. Many here are up in arms about what they think is
> an unfair trade and worldwide business environment. But short of
> erecting trade barriers that many economists and business leaders say
> would be self-defeating, no one seems to know what to do - including
> Obama and Clinton.
>
> "To get elected, you have to appeal to everybody. But it is hard to
> say this makes a lot of sense. If you don't figure out how to engage
> in the world's economy in today's world, you're kidding yourself,"
> said Thomas E. Brady, president of Plastic Technologies, a suburban
> Toledo firm that designs and oversees the manufacturing of containers
> for such products as soda to laundry detergent. "The auto industry
> simply can't afford to pay people $28 an hour plus benefits anymore."
>
> Brady, a board member of the Regional Growth Partnership, a privately
> funded economic development group in Toledo, said the prescription for
> a secure economic future lies in innovative technology and education -
> a view that Obama and Clinton endorse.
>
> But the question is how to get there. The Toledo metropolitan area's
> unemployment rate has dipped below 6 percent only once in the past 20
> years, and is now 6.4 percent - 1.5 points above the national rate.
> Median home prices here barely top $100,000, yet the city is in the
> top 20 in the nation in number of foreclosures. Even a bright spot is
> the result of a downside. One of the fastest-growing segments in the
> local economy has been warehousing, where employment grew 40 percent
> in the past year - but that is largely because of the conversion of
> vacant factories into storage space.
>
> Both the Clinton and Obama economic plans offer protections to these
> struggling working-class voters. They would repeal tax cuts for upper-
> income Americans, extend the cuts for the middle class and offer tax
> credits to help families pay for college.
>
> Especially important in Ohio, both Democrats have foreclosure relief
> plans. Obama's offers $10 billion in bonds to help homeowners avoid
> foreclosure. He also would give a tax credit to struggling homeowners
> to cover 10 percent of the interest on their mortgages each year.
> Clinton would temporarily freeze foreclosures and interest rates on
> adjustable rate mortgages held by people with poor credit.
>
> But for all the promises and proposals, Toledo's economic problems
> have causes that the candidates have been unable to address.
>
> "While you many be able to slow some things down, the long-term
> interests of the region are going to have to be linked to developing a
> competitive position in the global economy," said Daniel M. Johnson, a
> University of Toledo professor of public policy and economic
> development. "We've got both offense and defense to play here."
>
> Advances in manufacturing technology have made it possible to produce
> and export more products with fewer workers. Even firms that are doing
> well, such as glass maker Libbey, are growing more rapidly abroad than
> at home. While there is little chance that Libbey will leave Toledo,
> there is also little chance it will expand here in the near future.
> But the company recently opened a new plant in China.
>
> Instant communication and cheaper shipping have made worldwide
> business easier. Also, businesses are wary of locating here because of
> the high cost of labor, which is an outgrowth of the strong union
> presence. Manufacturing workers here earn an average of $68,000 a
> year, according to Moody's Economy.com.
>
> Continued
>
> �1 �| � 2
>
> http://www.cbsnews.com/stories/2008/02/24/politics/washingtonpost/mai...


Page II

Reinventing America's railroads

How to create jobs that cannot be exported

Most of the jobs that were lost to offshore countries will never
return until Americans become available as the cheapest workers on
earth. (may be sooner than we think) We need a president that can make
it worth while for corporations to stay here.

There are hundreds of ways to reinvent the American economy.
One way is to reinvent the answer to the airplane and terrorist
threats. Reinvent the railroad. We need rapid ground public and
freight transportation badly. It will create thousands of well
paying jobs and create a spin off that will create more jobs.

It may still be asked whether this perfected transportation tool will
have a role to play in future economic development," said Louis
Armand
of the railway industry in 1964. "There still persist people who
believe that the economy of modern nations can get along without
railways and that, as a consequence, railways ought to consider that
their job is to shrink, with the goal of disappearing entirely one of
these days."

Armand himself was not among the doubters. A wartime resistance hero
who went on to become director general of the French National
Railways, secretary general of the International Union of Railways
(UIC), and a member of the French Academy, Armand wrote 37 years ago
of the "railway use of cybernetics" (today, computerization) and the
role other modern technology would have to play in "plunging the
industry ahead toward audacious accomplishments."

But some of the basic questions posed by the world's best-known
railroader nearly half a century ago are still being asked in the
United States today: Where does the railway industry fit in,
economically, socially, politically? What does it need to do to
compete effectively as a transportation provider with those modes,
primarily highway and air, that garner the lion's share of public and
legislative attention?


Economically, times right now are tough. Business is down in just
about every sector. Growth capital is short or non-existent. But
despite all this, the industry is beginning to position itself to
claim a much larger share of the transportation marketplace than it
has had in many years. Gradually coming into focus is a fundamental
shift in public policy and perception toward rail transportation that
could pump billions of public dollars into the system. Equally as
important as new capital is a rethinking of business practices, a
reconsideration of traditional industry values and concepts, a change
in railroad culture-indeed, a "reinvention" of the industry.


A new source of capital


A key word, says Ike Evans, is "partnership." Partnerships will
certainly unlock many opportunities for the railroads. Union
Pacific's
chief describes the rapid growth of interline alliances, and speaks
of
the need for more partnering with highway carriers. Indeed, Evans
describes a railroad industry that may not need to "reinvent" itself
so much as it needs to more aggressively capitalize on its strengths.


Other railroad leaders are beginning to say that partnering in a
broader sense, and in ways that many in the industry may find
disagreeable, could unlock many more opportunities in the future.
What
they're talking about is federal subsidies to freight railroads-
subsidies that will create, in the words of Association of American
Railroads President and CEO Ed Hamberger, "the railroad equivalent of
the Interstate Highway System," a system that will support sustained
growth in both freight and passenger traffic. For example, the
infrastructure for operating higher speed short- and medium-haul
intercity passenger trains: It's owned, operated, and maintained by
freight railroads. Investing federal and state dollars to increase
the
frequency and speed of passenger trains without compromising the
integrity of freight service or safety-adding track, improving
signaling and train control systems, closing or improving highway/
rail
grade crossings-would cost a fraction of expanding an airport or
highway, and would certainly be environmentally wise.


Federal aid-two words that would have given some railroaders a heart
attack just a few years ago-may very well be the only way a capital-
intensive railroad industry that often doesn't earn its cost of
capital can remain alive and well. Burlington Northern and Santa Fe
President and CEO Matt Rose speaks for a growing number of
railroaders
when he says that "we're singing a different tune from the one we
have
sung in the past," and that "this is today's reality."


Rose has called attention to "breakthrough proposals" now moving
through Congress that would help railroads strengthen and expand
their
infrastructure. Legislation known as RIDE-21 in the House and RAIL-21
in the Senate would make $35 billion in low-interest loans available
to Class I's, regionals, and short lines. These bills would also
provide billions of dollars of funding for rail passenger projects,
many of which would benefit freight carriers by adding much-needed
capacity to existing rights-of-way. The Senate bill includes
authorization for $350 million per year for three years to upgrade
small railroads to handle 286,000-pound cars.


"These proposals recognize the need for more public/private
partnership initiatives to improve the nation's rail infrastructure
and to be responsive to concerns about traffic congestion, safety,
transportation flexibility, and economic development," says Rose.
"The
rail industry needs ongoing help with its infrastructure investments
to remain strong and competitive. Public policy dictates a sound rail
infrastructure for America so we can continue to be a strong economic
force globally."


Viewpoints on such legislation run the gamut of emotions-from strong
support to skeptical acceptance to outright indignation. But
regardless of whatever visceral reaction one experiences, the fact
remains that something needs to be done, and soon, to solve the
problem of revenue inadequacy. The indicators that support such
dramatic steps are clear. Matt Rose identifies them as such: "Over
the
past couple of years, railroad industry tonnage growth has
outstripped
revenue growth, and that trend is continuing. Similarly, until this
year, most real rail rates have steadily been declining. In 2001, the
industry has been able to take some prices up in the 2-3% range.
However, operating costs have risen at a faster rate due to
inflationary increases in wages and benefits, fuel prices, and the
cost of materials. We no longer can find big cost savings initiatives
to overcome these operating expense increases. We are not getting
sufficient dollars for what we are providing and we are no longer
able
to take costs out of the business at a faster rate than inflation."


Some of the industry's largest potential cost savings and growth
opportunities are already tied to legislative issues. One is the 4.3-
cent deficit reduction tax on each gallon of diesel fuel purchased.
Railroads and barge companies are the only transportation modes still
paying this tax. Repeal of it could save the railroads around $150
million a year. "We have come close to having this tax repealed,"
says
Rose, "but it hasn't happened for various reasons."


The greatest story never told


One reason behind the railroad industry's less-than-stellar track
record on Capitol Hill may be its "stealth" status with the general
taxpaying public and, by extension, those who represent its
interests.
"Railroads have been more successful over the years at blocking
harmful legislation than in getting favorable legislation approved,"
says Railway Age Contributing Editor Larry Kaufman. Adds long-time
supplier Craig Duchossois, CEO of Duchossois Industries, Inc., "With
rare exception, our industry and its leaders are unknown on Capitol
Hill, in contrast to truckers. It's time to speak up and get our act
together in a unified, meaningful manner. We've been out-lobbied for
years, and can no longer afford this tremendous competitive
disadvantage."


Many in the industry are beginning to realize that negative or
nonexistent public perception of railroads is a real hindrance to
progress, whether it be getting an important piece of legislation
passed or obtaining local support for an expansion project that will
bring more trains through town. After years of virtually ignoring
public relations, the Association of American Railroads is putting
together the first elements of what could become a large-scale public
awareness campaign. But getting the Class I's to commit to an
ambitious and potentially expensive media program will be a hard
sell,
especially since the direct benefits are hard to quantify.


Short-term, a one-minute television commercial extolling, say, the
environmental benefits of moving truck trailers and containers by
rail
won't add to the bottom line. Long-term, the public's repeated
exposure to positive messages about rail transportation could work to
the industry's benefit. As Matt Rose said recently, "we are examining
every part of our business and are beginning to take steps that are
not designed to make the next quarter look good to Wall Street, but
to
make the future successful for each member of our community,
including
all of our shareholders."


Reaching out to the public-the customers of the railroad's customers-
should be part of that.


Whose track is it, anyway?


Drinking from the deep federal transportation trough won't come
without at least a few strings attached. The biggest string-a noose,
really, to opponents of federal aid-is the "O word": open access
(defined by some as the "F word": forced access), but more accurately
termed "competitive access." Then there's the "R word": reregulation.
Will competitive access and reregulation scenarios come to pass? Will
railroads be forced to open their rights-of-way to anyone who wants
to
run trains in exchange for government dollars? Will they lose some of
the freedoms of the Staggers Act? Probably not, at least not in as
ominous terms as some are portraying.


"The question of open access will always be with us," says Ray
Chambers, the railroad lobbyist leading the short line charge up
Capitol Hill. "But with only four major carriers, it's easier for
them
to work together to improve service, through alliances and other
means, to the point where open access is not an issue. Call it the
'private interstate highway approach,' where the target is getting
freight off the highways, not off other railroads."


"The railroads are lucky that the customer world isn't united," says
Larry Kaufman. "If the shippers ever agree on what they want, then
all
bets are off. Remember, companies like UPS are bigger than the entire
industry. Competitive access is not like abortion rights or gun
control. It's not one of those issues that Congress votes for on
principle, and Congress doesn't like to referee battles between
competing interests, particularly when both sides are PAC
contributors. It's really a commercial dispute, and the standard
Congressional response is, 'you people negotiate a deal and bring it
to us to codify.' That's why there were so many negotiations between
railroads and shippers, back when 4R and Staggers were on the table."


"Creativity before capital"


The most capital-intensive part of railroading is infrastructure. If
the railroads are to grow, they will have to move beyond merely
maintaining their track and structures to a state of good repair, and
add capacity. But even if federal and state dollars begin to flow,
railroad engineering departments will still need to exercise prudence
with their resources.


"We need to be constantly thinking of ways to solve issues without
always throwing capital dollars at the problem-in other words,
'creativity before capital,'" says American Railway Engineering and
Maintenance-of-way Association Senior Vice President Mike Armstrong.
"The goal is to avoid expenditures that do not add sufficient value
to
the operation of the railroad. As an industry we can help lower our
costs through standardization of material and equipment.


"This is easier said than done. We all take pride in our own
standards
that have served us well for many years. Fact is, however, we need to
move beyond the pride issue and consider development of common
standards."


Here, Armstrong, BNSF assistant vice president and chief engineer-
Southeast Operations, is talking things like a standard #20 turnout
design, standard concrete road crossing panels, a standard insulated
joint design, and standard concrete ballast deck bridge spans. "These
are but a few examples," he says. "There are also opportunities to
standardize pieces of production equipment. As an industry, we need
to
work with our suppliers and manufacturers and press to achieve longer
asset lives and reduce our overall life cycle costs."


Armstrong says that "there are ways to deal proactively with
maintenance issues and minimize capital expenditures." As examples,
he
cites selective replacement of turnout components that extends
overall
turnout life, drainage and subgrade repair work to prolong ballast
and
tie life, and scheduled rail defect testing to extend rail life. "The
ongoing challenge is to achieve a balance between the required
service
needs of the transportation department and the necessary level of
physical plant maintenance to meet those service needs," he says.


A new electronic world


Perhaps the most fundamental shift in how railroads conduct business
is their entry into the still-developing arena of electronic
commerce.
In the not-too-distant future, it may be possible for railroads,
their
customers, and their suppliers to conduct many types of transactions
on the Internet.


"The move into e-commerce is going to be tremendous for the rail
freight and rail transit industries," says Mike Monteferrante, senior
vice president of iRail.com. "On both the supplier and buyer sides,
there is going to be increasing pressure for all of us to be more
efficient, and to continue garnishing cost-saving concepts and ideas.
A prominent source for that will be the efficiencies of e-commerce.
In
addition to that, suppliers and transit authorities and railroads
need
to improve relationships and communication tools. E-commerce will
assist in that endeavor, bringing suppliers and buyers closer
together
in terms of their ability to work together to accomplish their
efficiency goals."


The objective of railroad/supplier e-commerce interfaces like
iRail.com and RailMarketplace.com, which involves UP, BNSF, Canadian
National, Canadian Pacific, and CSX Transportation, "is to enable
buyers and sellers of railroad parts, materials, and services to
reduce their costs and streamline administrative processes around
sourcing, procurement, demand planning, and inventory management,"
says CP Vice President-Purchasing Luigi Armano. "These benefits will
also accrue to suppliers, who will have access to a larger customer
base."


Will there be a limit as to the types of products and services that
can be procured online? Will e-commerce extend to complex
transactions
like locomotive and railcar leases? UP Executive Vice President Brad
King, referring to RailMarketplace.com, says "it will be possible to
source and procure any product and service. This is not to say,
however, that the railroads will replace all of their existing
sourcing and procurement processes immediately."


The same concept could apply to how a shipper selects a
transportation
product. That's one reason why UP, CSXT, CP, and Norfolk Southern
have
invested $1 billion in Arzoon, an Internet-based system that allows
transportation sourcing and logistics to be handled on a single
software platform.


"Shippers spend up to 20% of their revenues on logistics," says
Arzoon
CEO Farid Dibachi. "For large shippers, this can amount to millions
of
dollars. Shippers spend $35 billion annually using railroad services.
By comparison, they spend $95 billion on trucking services. A small
amount of that business moving from truck to rail will increase
railroad business by a significant percentage. The time has arrived
to
give shippers the means to compare rail transportation on an even
playing field with truckers." Using a system like Arzoon, which
"allows shippers to make an intelligent decision about what carrier
to
use," could bring more business back to the rails.

Another new age?

"Railwaymen love their occupation, but many have doubts about their
future," said Louis Armand in 1964. "These feelings are fortified
by . . . the often difficult financial performance of their
enterprise, exposing them to criticism by the poorly informed." But,
he said, "in well-informed quarters, an about-face is occurring in
favor of railways. . . . Is this enterprise-the most important in the
present-day world-condemned to extinction? Must it be looked upon as
something which played a big role in a certain period of history, but
which it will no longer play in the year 2000?"

The answer to Armand's questions, in Railway Age's opinion, is no.
"It
is the good fortune of railways to have little competition among
themselves," Armand said. "Thus they have every incentive to join
together in common effort in all areas."

Reinvention won't occur overnight. As many veterans in this industry
will tell you, change comes slowly, and not without a lot of
agonizing. But if the railway industry can work together to embrace
change, the 21st Century can certainly live up to its promise as
another new railway age.

http://www.railwayage.com/nov01/reinvent.html
 
On Sun, 24 Feb 2008 14:27:40 -0800 (PST), Raymond <Bluerhymer@aol.com>
wrote:


|>Instant communication and cheaper shipping have made worldwide
|>business easier. Also, businesses are wary of locating here because of
|>the high cost of labor, which is an outgrowth of the strong union
|>presence. Manufacturing workers here earn an average of $68,000 a
|>year, according to Moody's Economy.com.
|>

Well convert that 68k into Euros or the Pound Sterling and tell us the
difference. And...there is NO outgrowth of the strong union presence.
In 1969 approx 53 percent of workers were under union contract.
Beginning approximately 1978 with Deregulation Union Membership has
been dropping year by year so now we have 47 million without health
insurance
--

Thanks,
Satchel
 
On Sun, 24 Feb 2008 14:27:40 -0800 (PST), Raymond <Bluerhymer@aol.com>
wrote:


|>Instant communication and cheaper shipping have made worldwide
|>business easier. Also, businesses are wary of locating here because of
|>the high cost of labor, which is an outgrowth of the strong union
|>presence. Manufacturing workers here earn an average of $68,000 a
|>year, according to Moody's Economy.com.
|>

Well convert that 68k into Euros or the Pound Sterling and tell us the
difference. And...there is NO outgrowth of the strong union presence.
In 1969 approx 53 percent of workers were under union contract.
Beginning approximately 1978 with Deregulation Union Membership has
been dropping year by year so now we have 47 million without health
insurance
--

Thanks,
Satchel
 
On Sun, 24 Feb 2008 14:27:40 -0800 (PST), Raymond <Bluerhymer@aol.com>
wrote:


|>Instant communication and cheaper shipping have made worldwide
|>business easier. Also, businesses are wary of locating here because of
|>the high cost of labor, which is an outgrowth of the strong union
|>presence. Manufacturing workers here earn an average of $68,000 a
|>year, according to Moody's Economy.com.
|>

Well convert that 68k into Euros or the Pound Sterling and tell us the
difference. And...there is NO outgrowth of the strong union presence.
In 1969 approx 53 percent of workers were under union contract.
Beginning approximately 1978 with Deregulation Union Membership has
been dropping year by year so now we have 47 million without health
insurance
--

Thanks,
Satchel
 
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