Siemens Mobility is making a major impact on the U.S. manufacturing sector with its plans to establish North America’s first high-speed rail production facility in Horseheads, New York. This US$60 million investment aims to create a strong domestic supply chain for the growing high-speed rail industry in the U.S., while producing the American Pioneer 220, the country’s first high-speed train.
Spanning nearly 300,000 square feet, this facility represents a shift toward localized production for large-scale infrastructure projects, potentially reshaping supply chain strategies across the transport manufacturing sector.
“A New Era for the Rail Industry”
Michael Peter, CEO of Siemens Mobility, highlighted the significance of the project: “This new facility in Horseheads, New York, marks the beginning of a brand-new industry in the USA – bringing both high-speed rail production and some of the world’s most modern trains to the continent for the first time.”
The American Pioneer 220 trains will be built using cutting-edge technology, including digital twin systems and a gearless propulsion system that reduces energy consumption by 30%, making it efficient on steep grades. The trains are also designed with accessibility in mind, allowing easy movement for wheelchairs throughout the train.
Passengers can look forward to high-speed internet, spacious seating, and even a unique “party car” lounge for a comfortable and enjoyable travel experience.
Senate Majority Leader Chuck Schumer praised the location, noting that upstate New York has a long history in rail manufacturing and is well-suited for this venture:
“Upstate New York is unmatched in rail car manufacturing capabilities, with a deep proud history pioneering the rail industry and a community that is excited to get to work building America’s future.”
Boosting Local Sourcing and Job Creation
The new facility is expected to create nearly 300 jobs in manufacturing, engineering, quality control, and test management. This influx of skilled positions may also spur further growth in related industries, creating a ripple effect throughout the regional economy.
For procurement professionals, Siemens’ localized production will offer benefits like shorter lead times, lower transportation costs, and greater flexibility in responding to production changes. This marks a significant shift toward domestic sourcing for major projects.
Competing Globally
Michael Reininger, CEO of Brightline, spoke on the global competitiveness of the project: “For the first time ever in the US we will be manufacturing trains that will compete with the best in the world.”
The American Pioneer 220 train sets, designed for the Brightline West project (connecting Las Vegas to Southern California), will reach speeds of over 300 km/h and incorporate the latest innovations for modern travelers. The gearless propulsion system and ultrawide body design make these trains energy-efficient and accessible, potentially setting new benchmarks for future rail projects.
Siemens Mobility has already invested US$3 billion in the U.S. over the past four years, signaling a long-term commitment to domestic production and providing a stable local supply chain for high-tech rail components. This could help mitigate risks posed by global supply chain disruptions.
Full Steam Ahead for U.S. High-Speed Rail
Production at the Horseheads facility is expected to begin in 2026. Procurement teams in transportation and infrastructure should consider how this development will influence long-term sourcing strategies. The rise of domestic high-speed rail production could spur competition among suppliers, driving innovation and reducing costs.
The impact of this investment is likely to extend beyond the rail industry, setting a precedent for domestic production and skilled labor across large-scale infrastructure projects.
Chuck Schumer summed up the momentum:
“It’s full steam ahead for America’s high-speed rail future, with every stop powered by union workers here in Upstate NY.”
As Siemens Mobility drives this new era of U.S. high-speed rail manufacturing, procurement practices in the transport sector are poised to evolve, offering both challenges and opportunities for those managing sourcing and supply chains.
