As part of the solution to solve national logistics and supply disruptions, U.S. Reps. Mike Kelly (R-PA) and Guy Reschenthaler (R-PA) this week urged U.S. Department of Transportation (DOT) Secretary Pete Buttigieg to prioritize the production of freight rail and transit semiconductor chips and related components.
“The chip shortage and bottlenecked supply chain are two major drivers of inflation. Prioritizing chips for freight rail will lower costs for both retailers and consumers across the United States,” Rep. Kelly said. “The rail industry in western Pennsylvania has always been strong. I look forward to working with the administration on this issue to ensure it remains just as robust into the future.”
Rep. Reschenthaler pointed out that the United States freight rail industry is critical to “moving everything from the food we eat to the energy products that power our homes.”
“As our nation continues to grapple with record high inflation and supply chain disruptions, we must support the American businesses and workers who can get our economy back on track,” added Rep. Reschenthaler. “I will continue working to ensure our freight rail manufacturers have the tools they need to provide the goods American families rely on every day.”
The lawmakers reiterated their concerns in a July 25 letter sent to Secretary Buttigieg and requested that the DOT ensure that freight rail and transit manufacturers are able to procure the necessary amount of chips and related components to carry out the goals of the recently enacted bipartisan infrastructure law, as well as to address national logistics and supply chain disruptions.
They also called for a DOT briefing to discuss appropriate responses to the current global chip shortage, which the congressmen noted has been a persistent issue since 2019 and is not expected to improve until 2024, according to their letter.
“Resolution of existing allocations involves significant capital investments to add new capacity. Depending on the industry, it requires two to three years’ time; therefore, all future needs are compromised until new capacity is online or demand decreases,” wrote Reps. Kelly and Reschenthaler. “In the meantime, it is of the utmost importance that the freight rail and transit manufacturers receive chips for safety and mission-critical parts and components.”