Industry Analysis & Industry Trends
Despite long-term growth in passenger numbers, revenue in the Urban or Suburban Bus and Tramway Operations industry has declined over the past five years. Passenger numbers on buses stabilised and then started to grow from 1999-2000, supported by employment growth, population growth and the increasing cost of personal vehicles. However, income from passengers only contributes just over half of industry revenue. Subsidies from local government authorities, public transport executives and the national government make up the other. The recession has left governments with reduced budgets, and the industry has been directly affected as subsidies have been wound back.
In the five years through 2012-13, industry revenue is forecast to decline at a compound annual rate of 3.3%... purchase to read more
Industry Report - Industry Investment Chapter
The industry is considered to have a medium level of investment requirements, with about £3.28 spent on labour for every pound spent on capital. That is to say, the industry has a moderate level of labour intensity. This is not a surprise with a minimum of one bus driver for each bus. However, most companies employ several bus drivers per bus, enabling the bus to be in service for longer periods. The level of labour intensity is also influenced by the fact that the depreciation is relatively long, with many buses being in service for well in excess of a decade.
The labour intensity of the industry is expected to increase in the next five years. The industry cut jobs in 2009-10 due to slowing demand for services because of the recession... purchase to read more