It took a long time to get here and it will take a long time to get out of it. But the market will correct any problems.

Labor costs? That depends on the area. If the type of worker you need is in short supply you will have to pay more for them because everyone else is. Like Silicon Valley. If Cat is paying wages that are good now will they be good tomorrow? Is a stable work force even needed to build a locomotive?

Raw materials? Can you get what you need where you are? Cumming's Engine tried to build diesels in India during the 60's. They lost big time because they could not even find piston rings that would last. They finally moved everything back to the US before they lost more market share.

Quality? Who else makes locomotives? Well, Mercedes for one. If Electromotive cannot find a place where they can build what their customers want the customers will look elsewhere or elsewhere will come and build in the US.

I know a guy that owns a short-line railroad and all of his stuff looks brand new. That is because he thought it was better to fix-up old GM stuff than to buy new. He was just not that impressed with what is on the market today.

Time will tell.