U.S. Transit Bus Industry:A Value Chain Analysis

Marcy LoweySenior Research Analyst

Duke University

C Gl b li i G & C i iCenter on Globalization, Governance & Competitiveness

January 14, 2010Washington, DC

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What does it take to compete?

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What is a Value Chain?

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Geography of a Value Chain

Emerging playersplayers

Global leaders

Subcontract Product designers

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manufacturersdesigners

Global Competiti enessCompetitiveness

Low-CarbonLow Carbon Competitiveness

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Manufacturing Climate Solutions12 Studies

LED Lightingg g

Solar power

Wind powerp

Hybrid Trucks

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12th in the Series: Public Transit Buses

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Five firms dominate the North American bus industryy

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…but the value chain goes way beyond those five firms

EngineRaw

Axles

Main Inputs

Leading Bus OEMs

Major Component Producers

SystemBuilders

Leading OEMs

Others

Semi-finished/ finished Chassis

TiresBrake system

Fuel system

Electric/Electronics

SuspensionTransmission

Windows ElectronicsWindows

Door system

Seating, flooring

US Bus Transit Fleets(1,000 or more Buses)

After-market remanufacturing

Lighting Body and InteriorSee OEMs

Cleaning systemOperation & Construction

5 Key Findings

1. Jobs

l2. Relevance

3. Demand3

4. Technology

S i5. Synergies

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1. Jobs are spread throughout eastern U.S.

25 000-33 000 jobs

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25,000-33,000 jobsmany overlap with the heavy truck industry

2. Bus manufacture contribute relevant skills and competencies to U.S. motor vehicle industry

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3. To add jobs, main factor needed is predictable investment

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4. U.S. leadership in “green” buses can lead the way for innovation in other motor vehicles

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5. Advances in bus technology offer key synergies in the clean energy economy y g gy y

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Thank you for your attention!

Marcy Lowe, CGGCDuke University

Center on Globalization, Governance & Competitiveness p

marcy.lowe@duke.edu

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