Industry Analysis & Industry Trends
In the past five years, demand for public transportation has been driven by rising fuel costs and more Americans moving away from rural areas into urban centers, forcing many people to switch from commuting with their cars to cheaper public transportation. Additionally, higher government funding has allowed for the expansion of energy-efficient transportation services. Over the next five years, industry growth will be driven by a couple factors, including continued increases in government funding for transportation and a rise in domestic trips taken by US residents. These trends will ultimately lead to a rise in ridership, helping to increase fare-generated revenue for industry operators... purchase to read more
Industry Report - Industry Investment Chapter
The Public Transportation industry has a high level of capital intensity. Companies in the industry must invest in trains, buses, railways and power supplies, among other capital equipment. Industry operators typically allocate $0.35 cents of capital for every dollar of labor. Over the past five years, capital intensity has increased slightly as capital investment has increased at a faster rate than revenue. Industry operators are continually updating and replacing fleets to keep operations running smoothly. Wages also remain an important cost as employees are needed to operate vehicles for public transportation.
Labor expenses include wages, salaries and benefits paid to drivers, mechanics, cleaners and administrative staff... purchase to read more