Industry Analysis & Industry Trends
The Bus and Tramway Operations industry provides land transport of passengers on urban, suburban or metropolitan transport systems. Therefore, industry operators can be broadly split into bus and tram operators. The industry relies heavily on subsidies from local government authorities, public transport executives and the national government. Over the past five years, the government has overseen significant funding cuts that have led to lower revenue and slimmer profit margins, with many operators scrapping or scaling back uneconomical services.
The industry has endured a challenging five years, with declining revenue overall and poor operating margins. Revenue is estimated to contract at a compound annual rate of 0.4% over the five years through 2016-17, reaching £6.7... purchase to read more
Industry Report - Industry Investment Chapter
The Bus and Tramway Operations industry is considered to have a moderate level of investment requirements, with an estimated £4.86 spent on labour for every £1.00 spent on capital in 2016-17. This shows the importance of both labour and capital to the industry. Bus drivers are an essential role and most companies employ several drivers per bus so that each bus remains in service for longer hours per day. On the other hand, capital costs are high because firms need to update and replace their fleets regularly. The industry's capital costs have risen over the past five years. At the beginning of the period, many firms were still delaying fleet upgrades due to financially difficult times. Firms are now making those purchases as demand returns to pre-recessionary levels.
.. purchase to read more