Industry Analysis & Industry Trends
The continuing trend among school districts to outsource their school bus services, given a lack of state and local funding for public schools, has propelled revenue growth. School districts that traditionally provided their own bussing have increasingly turned to industry operators to provide cost-effective transportation programs for schools. However, the industry has encountered challenges with regard to school boards eliminating bus routes, in addition to rising fuel costs, which caused revenue to contract. Nevertheless, in the five years to 2018 revenue will accelerate, given that demand for privatized industry school bus services is expected to strengthen, as school districts face escalating budget cuts caused by reduced state and local funding... purchase to read more
Industry Report - Starting a New Business Chapter
The industry has moderate barriers to entry. One of the primary barriers is the capital investment necessary to begin operations. Standard school buses cost about $75,000. However, newer low-emission school buses range between $150,000 and $185,000 each. Hybrid buses can cost up to $100,000 more than standard buses.
Barriers to entry vary depending on the region. Currently, the vast majority of privatized school bus providers are located in the Mid-Atlantic region. Therefore, new operators will have a greater chance of establishing themselves in regions that have fewer operators, as well as larger overall student population, such as the Southeast, the West and the Southwest regions... purchase to read more