School Transportation News Magazine | Buyer’s Guide 2016
PUBLISHER'S COMMENTARY
Economic Trends Driving Our Industry TONY CORPIN, PUBLISHER C
an you believe that diesel fuel prices have dropped more than $1 per gal- lon since this same time last year? Te U.S. Department of Energy reported
in December that the average retail diesel price is tracking at roughly $2.34. Te price decline was seen across all regions throughout the country, plus the actual cost for school districts and pri- vate contractors can be even lower based on bulk purchasing rates. Tis does not even mention the price of propane and CNG, which have fallen sub- stantially, too. Headlines about energy costs and fuel were prominent in 2015 and I’d expect to see more of the same in 2016. According to recent STN manufacturing sur-
vey data reported by the bus OEMs, about 95 percent of the national legacy fleet of approxi- mately 480,000 school buses are powered by die- sel. Bus OEMs reported that about 30,000 of the 41,200 school buses most recently produced run on diesel. Of the remaining 11,000 buses, about 6,000 run on gasoline and about 5,000 on some type of alternative fuel, mostly propane and then CNG. Tese figures are representative of the most recent production cycle that ended on Oct. 31, 2015. Te trends following new bus manufacturing
is a great measurement of how healthy our in- dustry is as a whole. And we’re happy to report it’s been another positive year of growth with another 5-percent, year-over-year bump in new bus manufacturing, according to our bus OEM survey. And the trend toward alternative energy acceptance seems to be continuing on a positive growth curve. Propane buses still remain the leader, followed by CNG and electric . In speaking with multiple industry-leading
suppliers, I heard the same thing, “It’s the best year we’ve ever had, and I don’t see it slowing down.” One transportation director I spoke with said he’s investing in some new propane pow- ered buses. Plus, outfitting his fleet with new video security equipment is replacing the anti-
quated systems currently in place. “It’s a much needed refresh of our video security equipment and buses.” It’s another trend I plan on continu- ing to see into 2016. So why are things getting better? One rea-
son, I believe, is because of a rebound in real estate property tax revenue. It’s a huge funding mechanism for cities and counties to fund the operating budgets of schools and transportation departments. With the real estate market con- tinuing to show strong growth and higher values, this should help drive more funding into educa- tion. But it’s important to understand that this differs by geographic region, and not everyone is getting equal funding. Some aren’t getting any- thing more, at all. Te second reason would be lower fuel costs.
Te hope is that the extra funding is helping drive additional purchases that districts desper- ately need to update older, outdated buses and to outfit new buses with the latest technology that improves safety and saves on operating and maintenance costs. Tere definitely seems to be a correlation. So what should you do next? Albert Einstein
once said insanity is doing the same thing over and over again and expecting a different result. So, as you reflect on 2015 and create possibili- ties for a 2016, I’d like you to consider a new ap- proach to problems or situations you might face in the New Year. I’m sure you have heard others say, “Tat’s the way we always do it,” but thought there must be a better way. Talk with your suppliers for advice if you are
having a problem or are looking for a better so- lution. Tere are about 400 companies repre- sented in our Component & Service Suppliers section that starts on page 92. I know these com- panies would be more than happy to speak with you about improving safety and helping you save your district money. You just need to reach out!
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