Motorcoach

UMA: Time for the Industry to 'Start Growing Again'

Posted on February 13, 2018 by Janna Starcic, Executive Editor

David Braun
David Braun
San Antonio played host to this year’s United Motorcoach Association (UMA) Expo, which also saw new UMA President/CEO Stacy Tetschner preside over the event for the first time. “We’re growing and we’re in a great financial position,” Tetschner said of the association during his opening remarks. He talked about new member benefits such as special money-saving credit card processing services, fuel discounts and growing the UMA’s staffing structure to provide “excellent” customer service to members.

Legislation regulation
Tetschner also touted the UMA’s investment in legislation regulation. To that end, Ken Presley, UMA’s VP, legislative/regulatory affairs & industry relations/COO and Becky Weber, managing director for D.C.-based government relations firm Prime Policy Group, provided the legislative regulatory affairs update to members. In a switch from year’s past, Presley said that there were no new regulations to talk about. Instead, he reviewed the regulations that were being eased or withdrawn.

“We saw the withdrawal of the obstructive sleep apnea rulemaking process that had started, the insurance limits increase was withdrawn, and, the lease-interchange rule is being reworked,” Presley said, adding, “We hope to see that mostly eliminated by the spring.”

Additionally, the Trump Administration has bumped the speed-limiter mandate. “We seem to understand that it will be ultimately withdrawn,” Presley said of the mandate.

UMA President/CEO Stacy Tetschner (far right) talks to members during a networking reception at the Buckhorn Saloon.
David Braun
UMA President/CEO Stacy Tetschner (far right) talks to members during a networking reception at the Buckhorn Saloon.
David Braun

Despite the spate of regulatory relief, which operators should “be feeling in their bottom line,” the industry still needs to “play defense,” says Weber. “We have two sleep apnea bills pending in the House and Senate. And, for those of you operating school buses, there’s also a bill in Congress that would mandate seatbelts on all new school buses, with no funding,” she said.

Tax reform outcome
Tax reform was a big concern for the UMA, according to Presley, citing preservation of fuel tax credits, avoiding a heavy vehicle use tax and the possibility of operators needing to expense their equipment. “I’m happy to say we survived all that during the tax bill.”

Presley also explained what other benefits may arise from the recent tax reform.

“We are seeing a lot of companies responding to the tax reform by giving their employees bonuses, so that’s going to mean more discretionary money to spend to go on charters and tours,” Presley said. He urged members to anticipate and prepare for that trend. “There’s something like 10,000 boomers retiring every day. We’re working on how to market to them. So I anticipate some growth for the industry in the next few years,” Presley said.

On the show floor, ABC Companies celebrated the 10,000th
Van Hool delivery in North America to DC Trails.
On the show floor, ABC Companies celebrated the 10,000th Van Hool delivery in North America to DC Trails.
Growth opportunity
The previous regulatory environment has hurt the industry, according to Presley.

“Back in 2007, we were doing 751 million passenger trips a year. That number is now a little bit below 600 million passenger trips a year, so we’ve shrunk,” he said. While the economy also played a role, the regulatory environment had a lot to do with it, he explained. “We saw new entrants virtually dry up. Right now we are about 700 motorcoach carriers shy from where we were in 2010.”  

Looking forward, there are a lot of growth opportunities to take advantage of. “There is a void not being filled by our traditional new entrants,” Presley says. “This is being filled by limo operators that are competing in a new way, and they are buying motorcoaches.”

With the regulatory pause, it’s a good time for operators to rethink their business strategies. “We have to think of how we are going to market our companies and we need to get busy and start growing again,” Presley said. “We’re starting to see that trend now. We were down 4,000 motorcoaches from 2010, it’s about 2,000 now. So, we are seeing the growth of fleets trending upwards.”

MCI showcased its new high-capacity MCI D45 CRT LE commuter coach with low-level-entry vestibule accessibility.
MCI showcased its new high-capacity MCI D45 CRT LE commuter coach with low-level-entry vestibule accessibility.
Show floor highlights
MCI and parent New Flyer Industries Inc. held a special press event on the Expo showfloor to showcase the all-new high-capacity MCI D45 CRT LE commuter coach. The vehicle features a low-level-entry vestibule accessible by a second door at the midpoint of the coach, which includes seating for five passengers, allowing for up to two secured mobility devices and an attendant, and high-capacity 54-passenger seating configuration overall. MCI also features its redesigned J4500, which now offers best-in-class legroom, a larger lavatory and optional rear window. Executives also announced that MCI is planning to produce an all-electric series of J4500 and D45 CRT LE coaches with production planned for January 2020.

Also on the show floor, ABC Companies celebrated the 10,000th Van Hool delivery in North America to DC Trails. ABC officials also announced the completion of an extensive renovation of its Grand Prairie, Texas, facility, which will offer a significant parts capacity expansion. ABC will also be opening a new northern California facility located in Newark. This facility will house a 6,000-square-foot parts warehouse and distribution center as well as a state-of-the-art service facility.

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