important concept. At transit agencies, what was recognized, and reinforced by fleet management software, was that Bid-Buses did not last as long as previous buses. They actually ended up costing the agencies more money and downtime during their usable lives. In short, their Total Cost of Ownership was higher. As a result, and after a few years compiling data, we are seeing a strong reaction against Bid Buses and a heightened emphasis on other products that promote quality and reliability. Bid Buses are still out there disguised as transit buses, but agencies now have data to assist in their decisionmaking processes and know what to look for and what to avoid. I believe this bodes well for the industry, because we are only as good as the products and services we provide.
What has been the most recent significant development which affected the size or health of the specialty vehicle industry?
Davey: There’ s not any one thing. The industry is diversified with enough different manufacturers, which precludes there from being any one thing. Backlogs are bigger than they’ ve ever been, which speaks to the health and size of the industry.
Schetky: One of the biggest developments from the perspective of the specialty vehicle industry has been the platforms in which small and midsize bus manufacturers can build upon. The Ford Transit chassis has opened the door for smaller, more nimble vehicles used for demand response applications. It has also reintroduced a diesel engine for light-duty use. Electric conversions are available and being purchased in states that provide grants and / or incentives for their implementation.
Hotard: Consolidation is absolutely the biggest development in the midsized bus industry. As I said earlier, the manufacturers are larger, able to produce more units, able to improve the manufacturing processes, have more capital for engineering resources, and are investing more in assembly lines and the manufacturing process.
Where do you see the biggest growth opportunities for operators using specialty vehicles?
Hotard: We are seeing many of our customers pursue contracts for public / private partnerships, such as school or university transportation.
From a specialty vehicle perspective, we have three vehicles that I think are worth highlighting in terms of competitive advantages and growth opportunities:
First is the convertible Sprinter, a vehicle from Europe with a unique executive transport feel. It offers a great 360-degree view, with a convertible top for any kind of weather. Limousine customers, tour customers, resorts and hotels are considering these vehicles to set themselves apart from their competition.
The 40-foot, low-floor transit bus has been the staple of many urban agencies across the country, but we are finding more of these agencies are looking for smaller, more fuel efficient, more maneuverable vehicles, but they still want it to be a heavy-duty bus. This Grande West Vicinity bus allows them to reach more into the smaller routes, feeder routes or routes that may not otherwise be possible to accommodate if not for a more maneuverable heavy-duty bus. Thus, we are seeing an increase in 30-foot buses in our market.
Finally, more of our manufacturers have been offering a larger capacity midsize bus, something that ' s in that 35-, 40-, 45-passenger capacity that is probably half the cost of an intercity motorcoach. These are going to for-hire, limousine and charter customers.
Schetky: Connected buses provide growth opportunities for operators in that they improve the experience for customers and provide valuable information to increase the efficiency of operations. Passengers can check the status of their ride in real-time on their phone and track its location / progress when a vehicle is en route. Technology has trained people to expect information to be available to them with a few clicks and connected bus applications provide this. Fleet managers receive valuable data on vehicles and can better plan for preventative maintenance with alerts and notifications. Underperforming vehicles can be flagged when fuel economy no longer falls within the ideal range. The possibilities are endless, and the need for manually inputting information is lessened with automated data collection and reporting. Allowing passengers to better utilize their personal time to plan for transportation, and fleets to lower operational costs and improve the performance of the vehicle, provides a landscape for operators to grow.
Davey: Operators will find a niche that serves the areas they operate. For example, if you operate in Northern California, you’ ll likely do a lot of wine tours. Operators near big cities, such as New York or Los Angeles will do sight-seeing tours. Another big opportunity is nonemergency medical transportation, which is one to observe, going forward. As our communities age, there are more and more services surrounding that segment of passengers, and it continues to grow.
How have new vehicle designs and technological advancements affected the specialty market? Are these new vehicles affecting new business development for the operators purchasing them?
Schetky: New vehicle designs are always being discussed and are driven by the demands of the fleet operators. One example is the modernization of low-floor cutaway buses. Low-floor buses allow all passengers, both wheelchair and ambulatory, to enter through the front entry door using an ADA ramp. Low-floor cutaway buses have been around for a while, starting with the ELF in the 1990s. When low-floor buses were reintroduced years later, they were a bit awkward in their configuration. Building a low-floor bus presents obstacles. The floor structure needs to be low enough in the front of the bus for a ramp to meet ADA’ s required rise over run, but high enough in the back of the bus to clear the rear axle. So, when lowfloor buses were reintroduced, the initial design used a sloped floor to clear the rear axle. That meant, in the interior of the bus the entire floor sloped downward from the rear of the bus to the front. Our opinion has always been that this just isn’ t a practical design for a public-use bus, and that the sloped floor provided too many potential issues for passengers and operators. We just can’ t get behind the idea of seating wheelchair passengers on a slope.
Shortly thereafter, Champion Bus decided to develop their own low-floor bus and reached out to agencies to determine how this new product ought to be developed. It was determined that a floor that is level throughout with a short ramp to get over the rise of the rear axle was the ideal floorplan. The level floor Champion design is what transit agencies were accustomed to with their heavy-duty transit buses. It was a tried and true design, but brand new for a light-duty bus manufacturer. Also, wheelchair passengers would not be seated on a slope, they would be seated on a flat, level surface, which alleviated many concerns. The input that the fleet operators provided allowed the Champion LF to be built without the pitfalls of previous products, and this collaboration is a prime example of how customer demand for products and improvements drive the innovation of new products.
Davey: We’ ve seen a shift toward better fuel economy in new lightweight chassis models. In the past, lightweight models restrict the number of passengers because the engine is also smaller. The technological pursuit of better fuel economy makes weighing the pros and cons a challenge for operators.
Hotard: As far as new business, I think of factors like the smaller transit bus I mentioned earlier which is bringing new riders into the industry that would not have existed beforehand. The convertible Sprinter, as well, is especially attractive to a millennial customer who may not have taken a bus trip before.
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