the hundreds. Fewer routes mean fewer breakdowns, which mean fewer replacement parts. Inventories are being limited to certain brands as bus fleets are pared to include the most popular models manufactured in large part by the Big Tree: IC Bus, Tomas Built Buses and Blue Bird. Tere’s also the rise of “walking school bus.” Deflation is the elephant in the room that vendors refuse
to acknowledge, although everyone is taking action to avoid that eventuality. “Like every other industry, school bus transportation has been
impacted by the economy,” says Ken Hedgecock, vice president of sales, marketing and service for Tomas Built. “School districts are facing cuts not only in spending for new buses, but also in the area of maintenance. Our dealers have reported seeing an increase in orders for replacement parts as districts work to keep current buses running longer.” Hedgecock said he has received reports of 25- and 30-year-old buses still in use. “It certainly is a domino effect,” says Richard Dennison, presi-
dent and owner of Bus Parts Warehouse, a New York-based independent parts company that has South Carolina on its client list. “Te purchase of new buses is down, and that’s having an impact on OEMs, and that trickles down to suppliers. Everyone is buying in smaller quantities over a longer period of time.” Jim Reynolds, president of A-Z Bus Sales, Inc., a California-
based Blue Bird dealer, said he has seen this downward cycle before. “In response to fewer bus sales, bus man- ufacturers maintain reduced work hours and some have had layoffs.” Tere is a flip side. “School districts unable to purchase new units are
refurbishing buses to keep their existing fleet on the road,” says Brandon Billingsley, president of Texas-based Heavy Duty Bus Parts, Inc. “While there is a reduced demand for com- ponents on the OEM side, there is an increased demand for components on the aftermarket side.”
OEMs and their dealers are surviving the downturn because
they are affiliated with corporate entities or are diversified in the markets they serve and the products they offer. Suppliers affiliat- ed with dealers are hanging on and independent parts suppliers largely depend on aftermarket product demand for survival. Ob- servers say diversification is critical in an industry that is evolving from the traditional diesel bus to a contemporary vehicle that reflects society’s growing preoccupations with the health of chil- dren and the environment. Te emerging CNG bus market is a door that is opening for
some in the industry while other doors are closing. Te Los Ange- les Unified School District recently divided a contract for 260 new CNG buses between West Coast rivals, A-Z Bus Sales which deliv- ers Blue Bird buses, and BusWest, which handles Tomas Built. LAUSD made the purchase with the help of $43 million in grant money from a surcharge on gasoline sales earmarked to subsidize such purchases. Tat still left LAUSD tens of thousands of dol- lars short in matching funds, no short order in today’s economy. AQMD responded with additional grant money, which it also opened up to other smaller school districts, and further state funding from a ballot measure allowed LAUSD to only remain on the hook for about $13,000 per bus, which was much easier for the school board to stomach. Plus, says Transportation Director
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