A new report, “Buses Mean Business,” finds that the U.S. transit bus manufacturing industry supported about 34,100 jobs and contributed $5.1 billion to the nation’s gross domestic product (GDP) in 2025.

According to the report, which was conducted by Oxford Economics and sponsored by the American Public Transportation Association’s (APTA) Business Members Board of Governors, the industry also generated an estimated $1.1 billion in federal, state, and local tax revenue, with its economic impact extending beyond vehicle assembly plants into a broad domestic supply chain.

Aging Fleet Drives Replacement Demand

The report also highlights the size and age of the nation’s transit bus fleet as agencies face growing vehicle replacement needs.

U.S. transit agencies operate approximately 65,300 heavy-duty transit buses. Those vehicles accounted for about 3.8 billion passenger trips in 2025, or more than 10 million trips per day, representing roughly half of all public transit trips nationwide.

According to the report, 54% of the transit bus fleet already exceeds or will reach the Federal Transit Administration’s 12-year useful-life benchmark within five years. In 2024, about 13,700 buses were more than 12 years old, while another 21,500 were between eight and 12 years old.

At the same time, new bus deliveries remain below pre-pandemic levels. Approximately 4,700 transit buses were delivered in the U.S. and Canada in 2025, compared with more than 6,300 in 2019.

The report also identifies changes in the propulsion mix of new transit buses. Battery-electric buses represented approximately 20% of transit bus deliveries in 2023 and 2024, compared with about 4% of the existing fleet. Diesel buses remained the largest category of recent deliveries, accounting for roughly half of vehicles delivered during the period.

Supply Chain Extends Economic Impact

Beyond vehicle production, the report found that the industry’s economic impact reached all 50 states through supplier purchases and household spending.

While the largest impacts were concentrated in states with major assembly facilities and supplier networks, transit bus manufacturing generated economic activity nationwide.

Of the industry’s $5.1 billion contribution to GDP in 2025, $817 million represented direct value added by manufacturers, while $2.6 billion came from domestic supplier purchases and $1.8 billion resulted from household spending by workers whose incomes depended directly or indirectly on the industry.

The industry’s approximately $1.1 billion in tax revenue included $749 million in federal taxes, $216 million in state taxes, and $159 million in local taxes.

How the Study Was Conducted

To estimate the industry’s 2025 economic footprint, Oxford Economics used company information, public data sources, and economic impact modeling.

The analysis covered standard transit buses, articulated buses, commuter coaches, and other heavy-duty transit buses used in public transportation, while excluding school buses, most intercity motorcoaches, and other vehicle types outside the report’s definition.

The report emphasizes that its findings measure the economic activity supported by transit bus manufacturing and its supply chain, rather than the broader economic benefits associated with public transportation investment, transit operations, or improvements in transportation performance.