lie. “In addition to the major providers, there are many smaller multi-generational companies that provide service.” Klaus said the increased competition is evident during the bidding
process. “In the past, it was common to have one or two companies bid on privatization; now it’s common to see at least three or even up to six or seven companies compete for an account.” Stock said the competition transcends geographic boundaries.
“Tere are numerous national, regional and local contractors vy- ing for the business,” he said. “It is very, very competitive.” Patrick Vaughn, COO of Student Transportation of America
(STA), said while new competitors have entered the market, he has noticed school districts opting for quality service over the usual commodity pricing. “I’ve seen a change in the districts’ appetite to expend a little
more for a quality provider versus the commodity-priced con- tractor,” he said. Acquisition is a way of thinning the herd, although even ex-
perts disagree whether it is born of competition or is a separate entity. Durham’s Klaus says the issues are separate. Stock agreed but added: “Tere is a misconception that many companies are being bought up and there will be less competition, when in fact there are more competitors going after the market than 10 years ago. Some school districts have reinvented themselves to stay in the bus business. Tey are part of the competition.”
Acquisition is the first building block of STA’s growth strategy.
Te company’s website offers a “disciplined ABC growth strategy, that being Acquisition, Bid, and Conversion.” Te site also states that 4,000 private companies in North America that own and operate 30 percent of the school buses offer “significant consoli- dation opportunities.” Vaughn acknowledged a “continued appetite on the acquisition
side” by competitors. “Over the past five years, if you go on our website, we generally grow from 15 to 20 percent annually,” he said. “We like to call it managed growth. We’re not going to land every bid conversion or acquisition, but we want to grow at a pace where we can protect the integrity and quality of our service.” Gillie said First Student only pursues key acquisitions “when
it makes good business sense for both organizations.” He also agreed that aside from looking for cost savings, more importantly districts are looking for safe, reliable and efficient transportation solutions. Tat bodes well for the industry. “Districts that were once
hesitant about outsourcing their transportation services are now looking into outsourcing,” Gillie added. “Not simply because their budgets keep shrinking, but because of the higher safety standards and integrated solutions that can only be obtained with a centralized, dedicated focus. Te cost-savings component has been proven many times over.” ■
Outsourcing means savings.
Routings, vehicle maintenance, school bell time management, capital investment, operator training and many other specialties.
Pupil Transportation is a complex business that includes many aspects such as routing, vehicle maintenance, school bell time management, capital investment, operator training and many other specialties. But when you get right down to it, the two most important reasons school districts and private school systems outsource their student transportation are safety and savings. By far, according to independent research, the safest way for children to get to and from school is on yellow school buses. It’s safer than walking, riding a bike, public transportation, taxis and even being dropped off and picked up by a parent. Independent research also tells us that outsourcing can save school districts 10% or more in their transportation costs.
www.atlanticexpress.com 7 North Street, Staten Island, NY 10302
busdev@atlanticexpress.com 1-800-336-3886 ext. 8073
www.stnonline.com 23
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