NAICS 336510 Quarterly Industry Report
Railroad Rolling Stock Manufacturing
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 336510Sector: 33Updated: Q1 2026
About This Report
This Fair Market Value industry report for NAICS 336510 draws on verified data from the U.S. Census Bureau[5], Bureau of Labor Statistics[6], and the Small Business Administration[7]. Our research team compiles establishment counts, employment data, and SBA eligibility criteria specific to railroad rolling stock manufacturing. Reports are updated quarterly to reflect new Census releases and regulatory changes.
Industry Snapshot
Key metrics for the railroad rolling stock manufacturing industry.
Industry Definition & Overview
Railroad Rolling Stock Manufacturing (NAICS 336510) encompasses establishments primarily engaged in manufacturing or rebuilding locomotives, railroad freight cars, passenger transit rail cars, and other railroad rolling stock. Products include diesel-electric locomotives, electric multiple unit (EMU) passenger cars, commuter rail coaches, subway cars, light rail vehicles, covered hopper cars, tank cars, intermodal well cars, boxcars, and gondola cars. The U.S. Census Bureau[5] classifies this industry under railroad rolling stock manufacturing.
Roughly 170 active businesses employ an estimated 16,200 workers in this industry. Freight car manufacturing responds directly to railroad capital spending cycles and commodity traffic patterns, with covered hopper cars for grain and plastic pellets, tank cars for crude oil and chemicals, and intermodal well cars for container traffic representing the highest-volume car types. Locomotive production is more concentrated, with Wabtec (formerly GE Transportation) and Caterpillar (Progress Rail) as the two primary North American locomotive builders.
Freight car manufacturing involves steel structural fabrication including side post and center sill welding, truck (bogie) assembly with bearing and brake rigging installation, coupler and draft gear mounting, and application of protective coatings and customer-specific markings. Passenger rail vehicle production adds interior finishing including seating, HVAC systems, passenger information displays, ADA accessibility features, and propulsion system integration for self-powered cars. Buy America requirements under federal transit law mandate domestic content thresholds for federally funded passenger rail vehicle procurement, affecting production location decisions for both domestic and foreign-owned manufacturers. Tank car production follows AAR and DOT specifications including the DOT-117 standard for flammable liquid service that drives fleet replacement and retrofit demand.
What's Included in This Industry
- Diesel-electric locomotive manufacturing
- Freight car production including hoppers and tank cars
- Passenger transit rail car manufacturing
- Light rail and streetcar vehicle production
- Subway and metro car manufacturing
- Intermodal well car production
- Railroad car rebuilding and refurbishment
- Locomotive overhaul and remanufacturing
- Freight car truck and bogie assembly
- Commuter rail coach manufacturing
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Subsector | Transportation Equipment Manufacturing | 336 |
| Industry Group | Railroad Rolling Stock Manufacturing | 3365 |
| NAICS Industry | Railroad Rolling Stock Manufacturing | 33651 |
| National Industry | Railroad Rolling Stock Manufacturing | 336510 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 336611 | Ship Building and Repairing | Manufactures ships and boats for water transportation rather than the railroad locomotives and rail cars designed for track-based freight and passenger service produced here |
| 336120 | Heavy Duty Truck Manufacturing | Produces heavy duty trucks for highway freight rather than the railroad freight cars and locomotives that carry cargo on fixed rail networks manufactured in this classification |
| 336999 | All Other Transportation Equipment Manufacturing | Manufactures other transportation equipment not classified elsewhere, distinguished from the specific railroad rolling stock covered by this dedicated rail manufacturing code |
| 336310 | Motor Vehicle Gasoline Engine and Engine Parts Manufacturing | Produces motor vehicle gasoline engines rather than the diesel-electric locomotive power systems and traction motors manufactured for railroad motive power in this industry |
| 332420 | Metal Tank (Heavy Gauge) Manufacturing | Fabricates metal tanks and heavy gauge containers classified separately from the railroad tank cars manufactured to AAR and DOT specifications for hazardous material transport |
| 237110 | Water and Sewer Line and Related Structures Construction | Constructs railroad track and infrastructure rather than the locomotives and rail cars that operate on that infrastructure manufactured in this rolling stock classification |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | Pennsylvania | 14.7% | 29 |
| 2 | Illinois | 11.7% | 23 |
| 3 | New York | 7.6% | 15 |
| 4 | Texas | 5.6% | 11 |
| 5 | Ohio | 4.6% | 9 |
| 6 | Missouri | 4.6% | 9 |
| 7 | California | 4.1% | 8 |
| 8 | Wisconsin | 3.5% | 7 |
| 9 | Nebraska | 3.5% | 7 |
| 10 | Alabama | 3.5% | 7 |
% Of Establishments
0%
15%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
32
Total SBA Loans
$16.4M
Total Loan Volume
$513K
Average Loan Size
9 yrs
Average Loan Term
9.85%
Average Interest Rate
464
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: The SBA[7] sets the size standard for NAICS 336510 at 1,500 employees. Firms below this threshold qualify for small business set-aside contracts and SBA-backed lending programs. Federal procurement includes locomotives for military rail operations, passenger rail vehicles funded through FTA capital grants, and freight cars for Army ammunition transport. The SBA's contracting programs[8] support manufacturers pursuing Federal Transit Administration and Department of Defense rail vehicle contracts. Eligible businesses can access SBA 7(a) loans[9] for working capital, equipment, and acquisition financing, while 504 loans[10] support major fixed-asset purchases including real estate and heavy machinery.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Regent Bank | 24 | $13.2M | $550K |
| 2 | JPMorgan Chase Bank, National Association | 8 | $3.2M | $400K |
Frequently Asked Questions
Common questions about this industry.
What types of businesses are classified under NAICS 336510?
Manufacturers of railroad rolling stock classify here. Products include diesel-electric locomotives, freight cars (hoppers, tanks, intermodal wells), passenger transit cars, subway cars, light rail vehicles, and rail car rebuild services per the Census Bureau[5] classification.
How is the railroad rolling stock industry structured?
Roughly 170 businesses employ an estimated 16,200 workers per Census data[11]. Two major locomotive builders (Wabtec, Progress Rail) dominate motive power while several freight car manufacturers and foreign-owned passenger rail vehicle producers compete for their respective market segments.
What is the SBA size standard for NAICS 336510?
The SBA[7] sets the threshold at 1,500 employees. Businesses with fewer than 1,500 average employees qualify as small for federal contracting preferences and SBA-backed financing programs including 7(a) and 504 loans.
What NAICS codes are related to railroad rolling stock manufacturing?
Related codes include 336611 (Ship Building), 336120 (Heavy Trucks), 336999 (Other Transportation), 336310 (Vehicle Engines), 332420 (Metal Tanks), and 237110 (Railroad Track Construction). Each covers either other transportation modes, engine production, or rail infrastructure distinct from rolling stock manufacturing.
What industries purchase railroad rolling stock?
Class I freight railroads, commuter rail systems, steel producers, rail car lessors, and track construction firms interact most directly. Freight railroad capital spending cycles and federal transit capital grants drive production volumes for freight and passenger equipment respectively.
What activities are included in NAICS 336510?
Activities include fabricating and welding freight car structural frames, assembling diesel-electric locomotive power systems, manufacturing passenger rail vehicle bodies and interiors, building truck assemblies with bearings and brake rigging, producing tank cars to DOT-117 specifications, performing rail car rebuilding and interior refurbishment, and manufacturing light rail and subway vehicles with propulsion system integration.
Can railroad rolling stock manufacturers qualify for SBA loans?
Yes, firms below 1,500 employees qualify for SBA lending programs[8] including 7(a) and 504 loans. Robotic welding systems, rail car assembly cranes, paint booth facilities, and wheel and axle press equipment represent capital investments suited to SBA 504 equipment financing.
Where are railroad rolling stock manufacturers concentrated?
Freight car manufacturing concentrates in the Midwest and Great Plains including Illinois, Pennsylvania, Texas, and Oregon near railroad interchange points and steel supply. Passenger rail vehicle plants locate near transit system customers, with facilities in New York, California, and Illinois. Locomotive manufacturing centers in Erie, Pennsylvania (Wabtec) and Muncie, Indiana (Progress Rail). Buy America requirements influence passenger vehicle plant locations to ensure domestic content compliance.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]U.S. Census Bureau census.gov
- [6]Bureau of Labor Statistics bls.gov
- [7]Small Business Administration sba.gov
- [8]SBA's contracting programs sba.gov
- [9]SBA 7(a) loans sba.gov
- [10]504 loans sba.gov
- [11]Census data naicslist.com
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