Government Gold Rush: How US Manufacturing Revival is Fueling a Railroad Renaissance!

Trains Tariffs and Treachery (of Weather!)

Alright folks gather 'round! Yours truly Indiana Jones has traded his trusty whip for a train conductor's hat—momentarily of course. Turns out there's more than just ancient artifacts to uncover. This time we're digging into the story of CSX a railroad company chugging along the East Coast. According to a chat with CNBC's Jim Cramer this fella Joe Hinrichs at CSX is seeing a boom in their industrial development biz. Seems the US government's been waving its wand trying to conjure up more manufacturing right here at home. And you know what? It's working! Makes one wonder if they found some government gold...

600 Projects and Counting: Not Bad For a Day's Work

Hinrichs boasts they've already opened 37 plants on their network this year! That's more action than I've seen in some of my expeditions. Apparently companies are scrambling to set up shop along the CSX lines. They had 500 projects in the works last year; now that number's shot up to 600. 'Snakes. Why did it have to be snakes?' Oh wait wrong adventure. But seriously 600 projects? Someone's been drinking their Ovaltine.

Made in the USA: A Railroad's Best Friend

Now Hinrichs is pretty clear about this: the more stuff made stateside the better it is for his railroad. It's a simple equation really. More factories = more freight = more ka ching! But as any good archaeologist knows there's always a catch. In this case it's those pesky tariffs. CSX's exposure to China might be less than 10% of revenue but it still matters. They're moving goods from West Coast ports through Chicago Memphis and beyond. After all two thirds of the population lives on their side of the Mississippi. So trade wars? Not exactly treasure hunting weather.

Hurricane Helene: The Weather Isn't Always Sunny

And if tariffs weren't enough of a headache Mother Nature decided to throw a hurricane into the mix. Hurricane Helene to be precise. This devilish storm walloped the East Coast leaving CSX with a quarter of its network in shambles. Rebuilding naturally takes time. They are estimating they'll be back to capacity in the fourth quarter. One has to wonder why it always has to be such difficult times.

Rebuilding After the Storm: It's Like Deja Vu All Over Again

I swear dealing with these setbacks is like facing Belloq all over again. Just when you think you're making progress BAM! Another obstacle. But Hinrichs seems optimistic. He says they're running better now and feel good about where they are. That's the spirit! Never give up never surrender...er wrong movie again. But the sentiment stands!

The Treasure at the End of the Line

So what's the takeaway my friends? The government wants manufacturing to boom and that's helping CSX. Tariffs and hurricanes are throwing wrenches in the works but they're chugging along. It seems that after all this CSX's efforts are going to turn out just fine! It's not exactly finding the Ark of the Covenant but it's a fascinating glimpse into how the global economy works. Now if you'll excuse me I've got a train to catch...and maybe a priceless artifact to recover along the way!