Less customization and more standardization in the bus industry could lower costs, speed delivery, enhance quality, and strengthen competition. The recommendations are found in “Customization, Competition, and Costs: Findings and Recommendations for the U.S. Transit Bus Industry,” by the Eno Center for Transportation.
The 58-page report offers six broad recommendations. In addition to federal laws and policies that would give transit agencies incentives to purchase more standardized buses, several recommendations call for a more active Federal Transit Administration (FTA) that would help agencies build strong procurement capacity through education, training, and workforce development, and increase transparency in pricing and programs.
Transit agencies customize nearly every aspect of a bus, from the number of seats to the screws on a panel door. Customization is not inherently bad because different transit agencies must account for different climates and topographies. “Individually reasonable decisions, stacked together, lead to high industry-wide costs,” according to Eno.
Eno estimates that U.S. transit agencies spend about $6 billion a year purchasing new buses, which represents almost 25 percent of all transit capital expenditures.
The complete report can be accessed here: Customization, Competition, and Costs: Findings and Recommendations for the U.S. Transit Bus Industry - The Eno Center for Transportation