Study: Private sector hurt by lack of fed funding, economy

Posted on August 24, 2011

Seventy-four percent of private sector businesses serving the public transit industry incurred flat or declining business over the past year due to uncertainty in federal investment, a down economy and a lack of investment on the state and local level, according to a study released by the American Public Transportation Association (APTA). Of those reporting a decrease in business, the average decrease was 25 percent. 

The study, "Impacts of the Recession on Public Transportation Businesses," reached out to APTA private sector business members serving the public transportation industry and revealed that 56 percent say they lost business from their public transportation clients and 52 percent of businesses say they expect to layoff employees or cut back hiring as a result. Seventeen percent say they may have to shift operations and business development to other countries.

"This is further evidence that tells us now is the time to invest in our public transit infrastructure to create jobs and boost our economy," said William Millar, APTA President. "Cutting money to public transit systems simply means the loss of jobs and most of which are in the private sector."

Currently, there is a proposal in the U.S. House of Representatives to further cut federal investment in public transportation by more than 35 percent. According to the U.S. Senate Banking Committee, these proposed cuts could lead to the loss of 141,000 jobs.

Seventy-four percent list uncertainty due to delay in federal authorization as having a negative impact on business revenue and two-thirds (67 percent) of respondents name the current weakness of the U.S. economy as having a negative effect on their business revenue.


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

More News

Va. woman struck by bus awarded $4.5M

The driver had reportedly been in four other accidents in the previous 18 months but was allowed to stay behind the wheel.

Fla.'s HART partners with Megabus.com to pilot service option

The agency is already providing enhanced routes and options through a unique 5-year partnership agreement with Megabus.com which began last year, to offer express travel to and from Miami and Orlando for as little as $1.

BusCon 2015 takes Indy by storm with new vehicles, tech and education

The 20th installment of the show featured more than 50 new exhibitors, 70-plus vehicles and plenty of information to inspire attendees.

House moves to delay PTC deadline

A bipartisan measure has been introduced in the lower chamber that would push back the deadline for most railroads to install automated train technology until December 2018.

Volvo celebrates new Nova, Prevost customer delivery center

The new Plattsburgh, N.Y., building will be equipped of a welcoming customer area, 10 bus delivery spaces and offices to enable our customers to continue their professional activities during their stay.

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



Work Truck Magazine

The resource for managers of class 1-7 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