according to the company’s president, there has also been an increasing de- mand for gas units, so GM’s late start toward 2010-compliance will not have as much of an impact on customer demand.
KEEPING OPTIONS OPEN Tomas Built Buses was also showing no signs of stress when it came to
questions concerning the break in availability of GM’s chassis for the small bus. Like other companies, it was proactive in securing some 2007 inventory for its customers prior to GM’s shut-down at the end of the year, reaching out to its dealers and assessing their needs. But, like its Canadian competi- tors, the company is also seeing a significant trend towards gasoline engines in the small bus market. “It makes sense,” said Ken Hedgecock, vice president of sales, marketing and
service for Tomas Built. “Gasoline engines today are very dependable and very durable, and they’re fuel efficient. Tere’s been a significant improvement in fuel economy on gasoline engines over the last three or four years.” Although the company has seen a recent boost as a result of Head Start
funds from the American Recovery and Reinvestment Act (ARRA), it has been minimal. Te company has felt the same effects of the economy as the rest of the industry and is seeing an overall compression of the market, specifically in the private operator and the multi function school activity bus (MFSAB) segments. “Budgets are being cut — resources are just scarce right now, period,” said
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Hedgecock. For now, the company is steering clear of the green side of the Type A
market, instead keeping its focus on its hybrid CE conventional Type C and CNG Type D transit models, a decision based on customer input. “Should there be a demand and customers come to us and tell us that
they want that technology, of course we’ll respond to it. As it stands right now, we just don’t see a significant demand from customers for that tech- nology [for Type As],” said Hedgecock. Te significant increase of alt fuels technology results in a much higher
percentage of the overall cost of a small bus and would significantly increase the cost, he added.
MFSAB’S MARKET EFFECT Starcraft’s David Wright might be focusing on a lot more this year with
the company’s expected, upcoming leap into the big bus market (see article on page 32). But he is still focused on keeping Type As moving down the as- sembly line, including MFSABs. “We’re seeing more and more states and customers even on the commer-
cial side saying, ‘Hey, I’ve got to have an activity bus.’ I think that will be what grows the overall Type A market, white as opposed to yellow,” said Wright. ARRA funds could help bump the MFSAB market’s overall numbers, but
there also needs to be funding to help customers finance, according to Star- craft’s GM. “If they can’t go to a bank and secure a loan for $40,000 to buy one of
those buses, it won’t matter,” he said, adding that the government’s focus on MFSAB safety is what will really drive the market long-term. “More states need to push laws so schools are more aware of the van issue.” n
38 School Transportation News Magazine January 2010
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