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, growth is forecast to improve as more public transit expansion programs are put in place... purchase to read more
Industry Report - Industry Investment Chapter
The Public Transportation industry is moderately capital intensive. Companies in the industry must invest in trains, buses, railways and power supplies, among other things. Industry operators typically invest about 21 cents of capital for every dollar of labor. Over the past five years, capital intensity has increased as many agencies upgraded older transportation vehicles. However, over the long term, capital investment in new fleets is expected to reduce costs due to operational efficiencies. Wages also remain an important cost as employees are needed to help operate vehicles for public transportation.
Labor expenses include wages, salaries and benefits paid to drivers, mechanics, cleaners and administrative staff... purchase to read more