U.S. rail systems: ‘Safety is a top priority across this entire industry,’ Siemens USA CEO says

Siemens USA President and CEO Barbara Humpton joins Yahoo Finance Live to discuss the company’s commitment to its U.S. market, investing $220 million into a rail manufacturing facility, EV adoption, and the outlook for Siemens USA.

Video transcript

- Expanding its manufacturing footprint with a $220 million investment into building a North Carolina rail manufacturing facility. Yahoo Finance had the chance to sit down with Siemens USA CEO and President Barbara Humpton on the company's contributions in advancing US infrastructure and the impact on communities. Take a listen.

BARBARA HUMPTON: This is such an exciting day. First, Siemens in the USA is-- this is Siemens' largest market. And we are so proud to have invested over $3 billion in the US over the last four years. So this is a continuation of our commitment to the US market. And what you're seeing here is the establishment of an East Coast railing stock rail manufacturing location. We'll be beginning with passenger trains and looking forward to all of the growth that's ahead.

- And this really does give us sort of a bit of a preview as to the future of rail car manufacturing. Talk about what that looks like versus what's currently on the market or the industry standard today.

BARBARA HUMPTON: Well, you know that the future is more electric and connected. We know that we need to be driving to all kinds of clean forms of power. So the rail cars that Siemens manufactures today, many of them have their own built in power, some of it battery. We're moving toward hydrogen as well. And so we can expect to see the introduction of those new technologies not only with Amtrak, but also with other transit systems. I'll tell you what, Rachelle, though, the thing I'm most excited about is the potential for a future of high-speed rail in the US.

- And certainly when you look around the world and you see how far some of those advancements have come, it's good to see now the US taking a stronger lead here. I do want to ask you-- because it's not just investing in rail infrastructure. It's also an investment in the community. This is going to come with about 500 jobs created through 2028. Talk about that investment in the community and what this means when we really think of what American infrastructure is now versus when we traditionally think of roads and bridges and things like that.

BARBARA HUMPTON: That's right. Yeah. And this is where Siemens is focused, this combination of the real and the digital world. We combine the two. And we're bringing technology into the infrastructure that's all around us. Think of us as an industrial technology company. But you know what, the technology is only as powerful as the people behind it.

So this selection of Lexington, North Carolina had a lot to do with the community itself, the people who are here, the educational system that's all around us, the power of the community college system in North Carolina are all factors in choosing Lexington as the home of our new rail facility, making the jobs of the future available to communities such as this that had been hard hit when textiles and furniture manufacturing moved overseas. Now with investments by customers and the rail industry, we're able to bring jobs here that are going to be the leading jobs of the next century.

- So talk about some of the investments that you're making because, at the moment, we're seeing a lot of companies pulling back on investing in partnerships. But over the past few years, especially over the past four years, Siemens has instead really stepped up those partnerships and investments. What are you prioritizing at the moment?

BARBARA HUMPTON: Yeah. And I'll tell you why we're investing right now. It is because we have a real transformation going on. We know that for years we've been needing to invest in the nation's infrastructure. And so with the passage of the bipartisan infrastructure law, now we have the down payment from the federal government being augmented by the investment of private companies and state and local communities who are all rebuilding the infrastructure that they need.

So what we've focused on at Siemens, really, is if you look across the board, you'll see this focus on transportation with mobility in passenger rail, light rail, as I say, hopefully the future of high-speed rail, but you'll also see us in cities working on connected buildings, working at the grids edge, bringing the software power of microgrids to help transform the two-way flow of electricity unlike anything that's ever been possible before.

And look for us in this resurgence of manufacturing because as more manufacturing is brought back to the United States, then we have the ability to set up new greenfield manufacturing locations. All of those can be set up using the latest tools. The digitalization of manufacturing makes a huge difference.

- And we know that the future of US infrastructure especially front and center. We have Norfolk Southern CEO testifying in front of the Senate this week on Thursday, especially after these unfortunate incidents that have not just had an impact on the rail services, but also the environmental impact as well. Talk about how that incident has really affected the conversations that you're having in your community.

BARBARA HUMPTON: Well, first of all, safety is a top priority across this entire industry. And our voice, the way we're using our voice in the discussion today, is to help people understand the power of technology to help us in the analysis and risk avoidance. I just heard a story today from one of our rail leaders who shared the news of a locomotive that badly needed maintenance. And the driver hadn't seen the need for it. But there's a command center where because we have the digital sensors on the train, the remote notification was possible. It's this kind of use of technology that we believe will be part of the solutions to ensuring the optimal safety of our rail systems.

- Barbara, obviously, with a lot of this advanced manufacturing that's needed for this also requires an advanced manufacturing workforce as well to be able to sustain it. What are you seeing in terms of the skills gap or perhaps any hiring issues that you're noticing in really trying to build the infrastructure of the future.

BARBARA HUMPTON: Well, we know that everyone is looking for good, strong workforce-- new folks to bring into the workforce. And so what we've been doing at Siemens is investing in particularly what we've been thinking of as the middle skills, those jobs that require more than a high school diploma, but perhaps don't require a full four-year degree. And using our experience as a German company with our knowledge of how apprenticeships work, we've been bringing that kind of earn while you work, earn while you learn kind of approach to the workforce development in the United States.

And we're seeing fantastic progress as states begin to develop high school apprenticeships. So bringing young people into the workforce as early as possible, and then actually bringing people in from the sidelines, offering special training programs for veterans who might really thrive in the kind of environment we're in. Overall, the most exciting thing I see happening is the application of our digital tools.

We've just demonstrated here in Lexington how we'll be bringing a virtual training program for welders. And what we've learned is that using these virtual tools, A, it's safer, and we can train people six times faster than is possible in the old fashioned way of actually putting our welders to steel. So just with the imaginative use of technology and reaching out to communities who perhaps don't even know that these great jobs exist, we're making real inroads.

- And, Barbara, I mean, you're a prime example, especially in an industry where you don't really get to see a lot of women in leadership positions. So I want to talk to you just about that, that rise through the ranks. And as you have that pipeline of young people coming through and looking at Siemens as an example, what is really the legacy that you'd like to leave right now?

BARBARA HUMPTON: What I hope to leave is a legacy in which our industrial technology company is one where anyone can feel like they belong because belonging is what really transforms. Every stage along my career I found myself in rooms of people who looked very different than I did. But I always felt like I belonged because I was dedicated to the mission. They were dedicated to the mission.

We're a company that works on technology with purpose. And I know it's just like a giant magnet for talent. People want to be engaged in building a cleaner, more sustainable future, a more equitable future. And if I'm successful in my role, there's going to be a seat at the table for anyone who wants it.

- That was Siemens USA CEO and President Barbara Humpton with many insights on the state of US infrastructure.