METRO Magazine Logo
MenuMENU
SearchSEARCH

APTA members predict layoffs, overseas investment without reauthorization

Eighty percent of private sector businesses indicated that the level of federal investment in public transportation has a large influence on business revenue. Survey also showed that if federal surface transportation authorization is further delayed, 84 percent of respondents predict revenue losses, 50 percent may need to lay off employees and 49 percent may implement hiring freezes.

February 1, 2011
3 min to read


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.

 

More Paratransit

BusJanuary 22, 2026

Biz Briefs: BART, Uber Launch Partnership and More

Stay informed with these quick takes on the projects and companies driving progress across the transportation landscape.

Read More →
SponsoredJanuary 19, 2026

3 New Ways Fleet Software Pays: ROI opportunities for modern fleet managers

Transit agencies depend on safe, reliable vehicles to deliver consistent service. This eBook examines how next-generation fleet software helps agencies move from reactive processes to proactive operations through automated maintenance, real-time safety insights, and integrated data. Learn how fleets are improving uptime, safety outcomes, and operational efficiency.

Read More →
RailJanuary 15, 2026

Biz Briefs: Alstom Supplying TTC Subways, SilverRide Lands California Contracts, and More

Stay informed with these quick takes on the projects and companies driving progress across the transportation landscape.

Read More →
Ad Loading...
New Mobilityby Alex RomanJanuary 5, 2026

Forest River Working to Redefine Reliability, Responsibility in the Bus Industry

As the transportation landscape continues to evolve in the wake of the pandemic, few manufacturers have faced, or embraced, change as decisively as Forest River Bus.

Read More →
Managementby StaffJanuary 5, 2026

New York MTA Marks Record Year for Ridership, Performance in 2025

The subway, Long Island Rail Road, and Metro-North Railroad all recorded record-highs for on-time performance in 2025.

Read More →
A white and blue graphic with text reading "Milwaukee County Transit Plus Riders Join WisGo in 2026."
Paratransitby StaffJanuary 5, 2026

Milwaukee County Transit Plus Riders Join WisGo in 2026

Transit Plus riders gain access to WisGo cards and mobile fare payment through the Umo app in 2026.

Read More →
Ad Loading...
Technologyby StaffJanuary 5, 2026

Vancouver's TransLink Taps Spare to Improve Paratransit Service

Starting next week, HandyDART will also extend its hours to 2 a.m., improving service availability for customers and aligning more closely with SkyTrain operating hours.

Read More →
New Mobilityby Staff and News ReportsDecember 19, 2025

Biz Briefs: Spare, Nova Bus, and More!

Biz Briefs covers the latest supplier news in the motorcoach and public transit industries.

Read More →
New Mobilityby StaffDecember 15, 2025

Florida's JTA Greenlights Major Fare Cuts for Bus, Paratransit Services

The JTA board also approved making Neighborhood Autonomous Vehicle Innovation service complimentary, effective December 15.

Read More →
Ad Loading...
New Mobilityby Staff and News ReportsDecember 12, 2025

Biz Briefs: Fare Collection, Motorcoach Orders, and More

Biz Briefs covers the latest supplier news in the motorcoach and public transit industries.

Read More →