Accessibility

APTA members predict layoffs, overseas investment without reauthorization

Posted on February 1, 2011

While public transportation-related businesses were encouraged by President Obama’s State of the Union commitment to investing in America’s infrastructure, new research shows that they remain deeply concerned about the negative effects that a delay in passing a long-term surface transportation authorization bill will have on their businesses.  

In a survey released by the American Public Transportation Association (APTA), 80 percent of private sector businesses surveyed indicated that the level of federal investment in public transportation has a large influence on business revenue.

The survey also showed a grim outlook for the industry if federal surface transportation authorization is further delayed, with 84 percent of respondents predicting revenue losses. The consequences on jobs could be significant with 50 percent predicting that they will lay off employees and 49 percent predicting hiring freezes if Congress fails to enact a well-funded, long-term bill soon. 

“As unemployment rates stay stubbornly high, public transportation is a smart investment that creates and supports jobs, while improving our communities,” said APTA President William Millar. “Conversely, the survey shows that Congress’ delay in passing an authorization bill has the opposite effect — forcing private sector businesses to lay off employees and to invest overseas.”

The association also notes research that shows every dollar invested in public transit yields four dollars in economic returns and every $1 billion invested creates or supports over 36,000 jobs. 

Patrick Scully, chief commercial officer of Daimler Buses North America, said that an authorization bill would help stabilize the industry. “Congressional action would provide much needed certainty to our industry to allow transit agencies the needed time horizon for long term capital planning, which in turn should turn into vehicle procurements and thus would help our business know how much we can invest in human capital and other resources,” he said. 

Jeffrey Wharton, president of IMPulse NC, which manufactures overhead electrification contact systems for light rail and trolley systems, reiterated that investments in public transit will help to put America to work. “With increased federal investment, we hope to increase our payroll, while also expanding jobs for our sub suppliers,” said Wharton.

“The uncertainty and continued delay in authorization is having a serious negative impact on all businesses, including DRI,” said David Turney, CEO of the DRI Corp., which makes digital communications technology that is used in transit systems. “We can’t afford to delay any longer. We are increasingly turning to international markets instead of the United States because of the delay in authorization. We urge Congress to follow President Obama’s lead and commit to long-term funding for public transportation in America.

More than 700 of APTA’s private sector businesses were surveyed for the report, with a 10 percent response rate. Investment in the public transportation industry creates and supports over 1.9 million public and private sector jobs and is a $54 billion a year industry.

 

View comments or post a comment on this story. (0 Comments)

More News

GRTC, reservation network co. partner for on-demand paratransit service

Customer benefits include direct, non-stop service; requesting a trip for same-day service; and flexibility to schedule a reservation up to 30 days in advance.

MBTA testing new tech to help blind find bus stops

The agency will install Bluetooth beacons on bus stop signs that can communicate via a smartphone app to tell users how close they are to the stop.

NY MTA adding mobile app to simplify paratransit travel

The upgrade comes amid a growing outcry from people with disabilities that they are being underserved.

BraunAbility's Q-Series wheelchair lift wins design award

The new lift combines an eye-catching curved design language with innovative use of geometry, resulting not only in a 10% weight reduction over its predecessor, but also a 300% improvement in rigidity.

Profile: Donna Smith, Sr. Director, Easter Seals Project Action Consulting

Donna Smith was 18 months old when doctors detected retinoblastoma, a rare form of cancer, and removed her right eye. For the next 18 months, her mother took her on zoo trips and drilled her on all the colors before doctors took out her left eye, too.

See More News

Post a Comment

Post Comment

Comments (0)

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment

TruckingInfo.com

THE COMMERCIAL TRUCK INDUSTRY’S MOST IN-DEPTH INFORMATION SOURCE

Work Truck Magazine

The number 1 resource for vocational truck fleets

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

LCT Magazine

Global Resource For Limousine and Bus Transportation

Please sign in or register to .    Close