Sep. 15—GOSHEN — With a possible rail strike looming, local companies are bracing for what such a strike might mean for their operations moving forward.
One such business is the Carpenter Company, 195 C.R. 15, Elkhart. The company is known for producing its proprietary foams found in mattresses, toppers, pillows and other various foam products.
According to Jacob Fife, division manager at the Elkhart facility, Carpenter Company does receive materials via the rail system, and as such he has been keeping a close eye on the nation's freight railroads, which could strike Friday if railroads and their labor unions are unable to reach a new collective bargaining agreement.
"Absolutely, it could affect us," Fife said of a possible rail strike. "We have some contingency plans to bring in things that we need to with trucks, but it could be a negative, cost-wise, versus rail.
"For us, I think the biggest negative is just the freight cost goes up for what you transport," he added. "I think that's the biggest one. So, if we have to use semis, for example, the cost would increase. And that's the advantage of rail. It's historically been a cheaper way to transport things. But the downside of rail is that it usually takes a lot longer."
However, despite his worries, Fife said he has some reason to be hopeful.
"My brothers work for the railroad, and they seem pretty optimistic that it's going to work itself out," Fife said of the freight rail-labor union negotiations. "So, I guess we'll see."
As for what it might mean for the area should the negotiations fall through and a strike happen, Fife said that's really a wait and see type of situation.
"I mean, you see the rail cars coming through this area all the time. There definitely is a lot of rail traffic in our area," Fife said. "So, I'm sure it would be a pretty big negative for our industry."
ECONOMIC THREAT
Brian Burton, president of the Indiana Manufacturers Association, offered a similar sentiment in a news release issued Thursday morning in response to the potential freight rail strike.
According to the IMA, manufacturing is the foundation of Indiana's economy, and a freight rail disruption could undo much of the progress made in recovering from pandemic-related supply chain challenges, hurting not just rail shippers and manufacturers, but consumers as well.
The Indiana economy especially would suffer, Burton notes, as Indiana is considered the "crossroads of America," connected by 41 freight railroads — one of the state's great advantages.