Aircraft, Marine & Railroad Transportation Equipment Wholesalers NAICS 423860

Aug 21, 2025 - Major US Railroad Firms to Merge

• An $85 billion megamerger between Union Pacific and Norfolk Southern will create the nation’s largest rail company. The combined company will create a massive rail network that spans the entirety of North America and will transport the majority of freight in the US. Union Pacific, with a market value of about $140 billion, has touted the benefits of a transcontinental railroad in America claiming it would improve service and reduce delays when changing cargo to a new rail carrier. Norfolk Southern, worth $60 billion, was particularly vulnerable to takeover because of an infidelity scandal that drove out CEO Andy Shaw last year, as well as its poor handling of a 2023 train derailment and chemical spill in East Palestine, Ohio. The proposed deal is likely to spur intense regulator scrutiny from the US government.
• Aircraft manufacturers are increasingly incorporating new technology and AI into planes, a fresh approach for a historically cautious industry where safety is paramount. Since 2022 investors have spent $15 billion investing in startups creating Advanced Air Mobility systems (development of electric or hybrid-electric aircraft). Other new technologies include electric vertical take-off and landing vehicles, alternative fuels, AI-copilots, and autonomous flights. These applications are not yet widely-used or scalable, but they represent a trend in which AI is expected to pump about $40 billion into the aviation industry by 2033, per South American technology firm Globant. Today, AI is largely used for personalized pilot training. The industry could soon use AI for such tasks as predictive aircraft maintenance and fuel optimization. Per airline technology provider Sita, AI incorporation could help the industry save $25 billion annually, provided it advances enough to ensure passenger safety and is accepted by the general public.

• The federal government wants to revive the US commercial shipbuilding industry and blunt China’s ocean freight dominance by expanding the number of US-flagged vessels capable of transporting vehicles, food, and fuel during wartime. There are currently less than 200 US commercial vessels available for such operations, and not enough mariners to fully operate them. The US has long outsourced shipbuilding and maintenance to the private sector in other countries, particularly in Europe, and those ships are not controlled by the US but are essentially rented out to carry American goods and be available to the Department of Defense in times of conflict. Trump signed an executive order in early 2025 instructing the government to come up with a plan in seven months to boost domestic shipbuilding and train and hire more mariners. The US hopes to eventually combat China’s control of almost 30% of all current vessels on the ocean.
• As aircraft supply chain problems persist, the average global aircraft fleet age has worsened from 13.6 years in 2023 to 14.8 years in 2024, according to International Air Transport Association (IATA) data reported by Simple Flying. Aging aircraft create a range of problems for airlines including higher maintenance costs and higher fuel costs than newer aircraft. According to IATA Director General Willie Walsh, airlines are getting hit on revenues, costs, and environmental performance. IATA data showed that aircraft deliveries have fallen 30% from 1,813 aircraft in 2018 to an estimated 1,254 in 2024 and 1,802 in 2025. The cumulative backlog has reached a record high of 17,000 aircraft. Companies are looking to lease aircraft to continue to grow and meet passenger demand, causing higher lease rates as competition for capacity expands.