 EMC's other main competitor, the Baldwin Locomotive Works, had their development work with diesel delayed by their belief through 1930s that the future of mainline service remained with steam, and by financial difficulties that effectively froze their diesel development while EMC and ALCO continued theirs.Baldwin started producing diesel-electric switch engines in 1939.Passenger trains made little money for the railroads, but replacement of steam engines with reliable diesel units could provide railroads with a crucial difference for profitability.