An increase in passenger rail car demand keeps TTA Systems’ manufacturing facilities busy.

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Affordable mobility, congestion management, reduced greenhouse gas emissions and less dependence on foreign oil are all drivers behind mass transit expansion in the United States. Passenger rail in particular has provided a transportation solution to many U.S. commuters. According to the American Transportation Association, approximately 200 agencies provide rail service throughout the country, helping make public transportation the $43 billion industry that it is today.

These factors have made passenger rail car manufacturing a lucrative business, occupied by roughly seven Tier 1 manufacturers in the United States alone. One of these manufacturers, Hornell, N.Y.-based TTA Systems, has kept pace with the boost in passenger rail car demand, while becoming a global player in the market.

TTA provides transit authorities, prime contractors and other component manufacturers throughout the United States with a full line of products and services in the rail passenger transportation industry. The company has worked with major transit authorities in Chicago, Boston, New York and Washington, as well as with large manufacturers such as Bombardier, Siemens and Nippon Sharyo. CEO Dave Sharma launched TTA in 1984 as an engineering consulting firm, and thanks to his experience in mechanical and electrical engineering, was able to transition into rail car and component manufacturing. “It was a fairy easy start-up for us and we had a bit of background in manufacturing, so we were able to gravitate into manufacturing,” he says.

But that’s not to say Sharma hasn’t had a few delays on the track to success.

In 2000, Sharma sold the business to pursue other ventures. After taking his exit, TTA’s acquirer decided to leave the United States, and the company took a turn for the worse. Unhappy with the circumstances, Sharma reacquired TTA in the fall of 2005. “The first task we had was to stabilize our operations and prove that we could motivate the work force, re-establish our financials, and get our reputation back to where it needed to be,” he says.   

In 2006, TTA divested its rail car overhaul division to Bombardier, and has since doubled its revenues, Sharma says. “We are now concentrating on the last leg of recovery and getting our backlog of work healthy,” he adds.

Since the reacquisition, TTA has focused part of its efforts on increasing its presence in North America as well as abroad. Plans are underway to expand its North American operations by opening a new manufacturing plant in Philadelphia this year, and by 2009, Sharma says TTA likely will be running a facility in India.

Proactive Player
TTA operates two divisions: new car assembly and new components and overhaul of systems. The company handles the final assembly of new cars, as well as designs, manufactures, tests and supplies parts for new and existing passenger railcars. The majority of the components include trucks, gearboxes, HVAC systems and electrical equipment, as well as some types of hardware.

Both divisions are run out of a 130,000-square-foot production facility in Hornell. Its cars are designed to work on both electric and diesel rail systems. Because new projects can be a large undertaking, they often involve the collaboration of all stakeholders, Sharma asserts. “It’s a small industry, so everybody seems to know everyone else, so it becomes a campaign all the way around,” he says. This – combined with the fact that new projects can take up to eight years from the time conception to the delivery of the cars – guards TTA from the negative effects of economic cycles. Therefore, the company can concentrate on new advances rather than react to trends. Air conditioning systems and refrigerant coolants, for example, have been modified to keep pace with environmental standards. Internal control systems also have become more automated, requiring the company to keep current with new products and methods.

“A lot of new technology has infiltrated our industry in the last 20 years,” Sharma explains. “While from the outside the rail cars might look the same, there are a lot of systems inside that seem to be keeping pace with the latest in electronics.”

Global Competitor
International interests have propelled the company since its inception. Japan assembler Nippon Sharyo expressed interest in working with the company early on; in 1986, TTA completed its first project with the company, assembling commuter cars for Maryland’s MARC service.

“They came to us and tried to get us to assemble cars for them and one thing led to another and we set up a number of projects for them,” Sharma recalls. TTA has since assembled bi-level gallery cars, locomotive-hauled commuter cars, light rail vehicles and heavy rail passenger cars for U.S. transportation authorities.

Globalization has presented both challenges and opportunities for the firm. Because of strict federal “Buy America” and assembly regulations, international rail car builders have to have final assembly completed in the United States. “As more builders come in, that has helped TTA,” Sharma says.

The components division is challenged by overseas competitors who can overhaul HVAC and other systems at cheaper rates. On the other hand, TTA has used the cheaper prices to its benefit by outsourcing some of its retail components.

TTA intends to boost its component systems business by entering joint ventures with companies in Europe, Korea and Japan. “In 2008, we expect to undergo a major expansion on the component manufacturing side that will triple our size,” Sharma states. "It's a double play – we are bringing manufacturing jobs into the United States from overseas, while helping the environment."

Without its skilled team of employees, TTA says it doubts much of its success would be possible. Because its located in an area of New York known for its skilled manufacturing work force, Sharma says he has few issues recruiting new employees when needed.

“We owe much of our success to the experience, knowledge and dedication of our work force,” the company states. “Our location – in an area of New York state that has long been a center of railway excellence – has given us access to some of the country’s most-talented railcar workers.”