The rail transportation sector contributed $233.4 billion in total economic output in 2023, according to a recent study by the Association of American Railroads (AAR), an organization focused on the U.S. freight rail industry’s safety and productivity.
A total of 11.3 million shipments, 38 percent of all rail traffic, were directly tied to trade-related activity connecting domestic producers to international markets.
Freight railroads invested $26.8 billion in improvements that modernized operations, enhanced safety and expanded long-term growth opportunities for businesses nationwide. For every $1 that was invested in rail transportation, it drove $2.50 in economic activity.
The rail transportation industry directly employed 153,000 people and supported 749,000 jobs nationwide in various industries, generating $66.1 billion in household income. Every railroad job supported 3.9 additional jobs in industries such as manufacturing, logistics, and technology.
“Railroads are a key pillar of American commerce, powering our supply chains and driving economic growth nationwide,” AAR President and CEO Ian Jefferies said. “With billions invested annually and a highly skilled workforce, railroads generate economic activity that extends from major industries to small businesses across the country. This study confirms that today’s rail investments build tomorrow’s jobs and prosperity.”
Freight railroads will continue powering the economy and fostering jobs through strategic investments, AAR said.