Running head: THE RAILROAD INDUSTRY JOB FIELD

The Railroad Industry and Why it is a Good Place to Work

Vincent Cioletti
Central Michigan University
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Abstract

This report explores the options and opportunities the rail industry provides employees in both

the present and the future. Through in-depth research, data is provided to factually back up

opinions and recommendations made throughout this paper. This report explores expected job

growth, possible declines, the rail industry as a whole, employee satisfaction, wages, benefits,

and a recommendation for pursuing a career in the rail industry. There are points made

throughout the paper that describe both sides of the job outlook, allowing for readers to develop

their own opinions outside of the opinions and recommendations explained in this paper alone.

Readers will be able to obtain a good understanding of what the rail industry is and what it offers

to potential employees after reading this report.

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The railroading industry has been thriving since the 1800’s because it was an efficient

way to transport both people and goods. There is a reason it has stayed the most common form of

freight, and there is also a reason it has fallen behind in the business of transporting people.

Newer forms of transportations such as cars and planes have put stress on the rail transportation

industry, but it has not gotten to the point where there is no business anymore. However, there

are questions rising surrounding the future of railroads and new technology. This report will

analyze if the future of railroads is still bright, and if getting a career in the railroad industry is

still a good idea.

There was much research conducted for this report through web pages, magazines, and

newspaper articles. Extensive background checks were made to determine the validity of the

sources and whether or not there is a bias. Some of the research is statistical, and some is

opinionated, but all of it is essential in determining whether the railroad industry is a good work

force to get into at this point in time. Most of the research came from mass searches through the

Central Michigan University library and databases like that. These databases offered a plethora

of web pages and articles to choose from, which allowed for research on many different aspects

and pieces of the rail industry.

There are multiple signs that point to the railroad industry staying very much intact, and

even possibly growing and becoming more prominent in the near future. According to Jackson in

his article “Fuel Efficient Trains?” (2008), trains are still the most efficient way to transport

goods. Diesel engines are able to move one ton of freight at a rate of approximately 436 miles

per gallon. In comparison to trucks and airplanes, this is far more efficient. Efficiency and cost is

of utmost importance to businesses, and this data shows that they would have no reason to be

concerned about continuing to use trains as their primary source of distribution. Furthermore,

technology advances are pointing towards new cities known as “smart cities” (Gonzalez, 2016).
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These smart cities would supposedly put a heavy reliance on the rail system, making railroads

even more prominent than they already are. Theoretically, these smart cities will draw more

people into urban areas, up until approximately 7 out of every 10 people live in a big city. With

so many people living in the big city and such a strong push for eco-friendly transportation, it is

believed that the primary source of transportation for people will be electric trains. While these

ideas support the fact that the train industry is not going anywhere, anytime soon, there are still

people out there who will quickly refute it.

Several people are pushing for trucks to become the primary source of freight

transportation. According to “Disruption: The Future of Rail Freight” (2017), advances in

trucking technology are putting pressure on the rail industry. There is a new advancement in the

trucking industry known as “super trucks.” These trucks supposedly carry a lot more cargo at a

relatively cheap cost. It is also believed that trains adapt to new technology slower than trucks,

but trains can afford to do that because they still carry a lot more cargo at one time than trucks

do. However, in the same article, Wyman admits that trains are currently reducing costs by

running larger trains and locomotives. Statistically, there is more pointing towards railroads

growing than trucks taking over, so there is not much concern over the job field shrinking

anytime soon.

The specific job outlook of the railroad industry is average. It seems as if it is set to

decline just a little during the near future. According to “Job Outlook for: Railroad Workers”

(2016), the expected growth for rail jobs is –3%. While this may seem alarming, its really not.

The rail field fluctuates regularly, usually staying in the –5% to 5% range, meaning it can be

expected to increase again very soon. The fluctuating market is more than made up for with the

benefits and satisfaction the rail industry offers its employees. For example, the median pay for

rail workers falls right around $75,000 per year. Furthermore, the highest 10% of workers can
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expect to make $80,000+ in salary. This is not a bad pay day by any means, especially when

thinking about the very little amount of schooling the field requires.

Big rail companies are also starting programs to ensure that workers are satisfied with

their work life. One of the biggest rail companies in the world, Canadian National, has

implemented a “buckets and buddies” system (Jackson, Chen, Mansion, 2008). This system

allows for employees to work with their friends on the job, making it a more fun experience.

Canadian National also began allowing crews to switch at halfway points on their trips so that

they can go home in half the amount of time that they used to. Rail industry leaders have begun

conducting annual engagement surveys as well, ensuring that their employees are satisfied and

engaged in their work (Kruse, 2015). While these companies are doing this for the sake of

cutting down on leisure time, it also is beneficial to the employees because it keeps them

satisfied and lets them know that their companies do care about their satisfaction.

Another big factor in deciding whether the rail industry is good to get into is timing.

According to Job Monkey (2019), rail industry workers on average are set to retire soon. This

basically means that the field is about to open up to take in a plethora of new workers, hence why

timing is an important factor in this. Job opportunity is always very important to entering a

career field, and these studies show that there is no better time to enter the rail business than in

the near future. Furthermore, rail workers are union protected. This means that their working

rights will be enforced and covered by the union, so that they cannot be over pushed with hours

or conditions. This also means that when emergencies happen, workers do not have to lose all

their pay when they leave to tend to them.

The rail industry does have some signs pointing to certain concerns, but for the most part,

things are looking good. There will always be a need to transport goods and people. The fact is,
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businesses will not be able to turn away from transporting goods in bulk. There is no other way

to transport tons of cargo from city to city. The only other way to transport as much cargo is the

shipping industry, but there is only so many cities that rest on bodies of water. While trucks will

always be around and a convenient way to transport goods in small quantities, they need to make

many more advances than they currently are to threaten the rail industry.

It is recommended that people looking for work should try to break into the rail industry.

With so many things surrounding job satisfaction, people cannot go wrong there. This is not the

type of job where people go to work and dread it every day. This is the type of field that the

employees get cared about and supported, both by each other and by union membership. The pay

speaks for itself, and so does the job.

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References

Disruption: the future of rail freight. (2017). In Oliver Wyman. Retrieved from

https://www.oliverwyman.com/our-expertise/insights/2017/sep/oliver-wyman-transport-

and-logistics-2017/operations/disruption-the-future-of-rail-freight.html

Gonzalez, C. (2016, July 27). All aboard! the future of railroads, subways, and smart cities.

MachineDesign. Retrieved from https://www.machinedesign.com/iot/all-aboardfuture-

railroads-subways-and-smart-cities

Jackson, B. (2008, July 1). Fuel efficient freight trains?. In FactCheck. Retrieved from

https://www.factcheck.org/2008/07/fuel-efficient-freight-trains/

Jackson, P., Chen, Y., & Pilo Mansion, D. A. (2008, September 23). IT strategies for increased

rail employee satisfaction. IEEE Intelligent Systems, 23(5), 13-15.

Kruse, K. (2015, February 17). The ROI of employee engagement in the railroad industry.

Forbes.

Railroad workers. (2016). In Career Planner. Retrieved

from https://job outlook.careerplanner.com/Railroad-Workers.cfm

The future of rail jobs. (2019). In Job Monkey. Retrieved from

https://www.jobmonkey.com/railroadjobs/future-jobs/