BUSRide OCTOBER 2018 DIGITAL | Page 18

Dealer Update: The Small & Midsize Bus Market in 2018 BUSRide spoke with representatives from some of the nation’s leading bus dealers to hear their thoughts on the current state of the small and midsize bus market, new technological developments and growth opportunities for operators running these vehicles. The panelists for this discussion were: Eugene Hotard – executive vice president – Alliance Bus Group Josh Davey – vice president of sales and marketing – Davey Coach Sales David Schetky – vice president – Schetky Bus and Van Sales Please briefly describe your operation and the applications in which your customers specialize. Josh Davey: Our customers are in many different segments of business. We are a full-service dealership, with solutions for facet of the customer experience. From vehicle options to purchase financing, to delivery, parts & service, and graphics, we offer a wide range of options to serve our customer needs. Additionally, we accep t trade- ins, which we are able to push back out into the secondary market as a certified pre-owned vehicle. Eugene Hotard: Alliance Bus Group is a full-service bus dealership with locations in seven states. We stock and sell a large selection of vans, small and midsized buses, heavy-duty transit buses and intercity coaches. We also offer specialized vehicles, like the convertible Sprinter with retractable roof and trolley buses. Our customer base includes many different types of customers with unique needs. Our main vertical markets are charter companies, transportation companies, tour companies and limousine companies; however, we also put a lot of effort and energy into other markets like senior care, parking, colleges and universities, hospitality and child care markets. David Schetky: Schetky Bus and Van Sales was founded in 1942 and is one of the original bus and van dealers in the United States. The company was created when there was a need for shipyard worker transportation during World War II. Jack Schetky, the founder, had experience building school buses, so when he was asked to manufacture buses for the shipyards he quickly got to work. When Jack’s son John returned home from WWII, he took over the company and expanded the business. Schetky is now a fourth-generation family owned business, whose customer base ranges from transit agencies, to school districts, to large national corporations. After all these years, Schetky continues to grow as one of the nation’s largest bus and van dealers and prides itself as being a service and support business first. This coincides with how the company was founded, in that our job is to not only provide the best products, but also an unmatched level of after-the-sale support to ensure our customers are best served 18 | BUSRIDE.COM | OCTOBER 2018 during the life of their vehicle. We meet these objectives because we understand that that our customers’ success depends upon it, and we always work our hardest to build long-lasting relationships with every transit agency and fleet operator. If you had to give a “State of the Small & Midsize Bus Market” address to the industry, what would you say? Hotard: Our industry is very stable, as the industry produces between 14,000 and 15,000 units a year, with about a 50 percent split between the public and private sectors. The public sector funded by the Federal Transit Administration (FTA) is a huge portion of the midsize bus industry. There has been a tremendous amount of manufacturer consolidation in the midsize vehicle industry, and some consolidation of distributors, and it has helped our products. Manufacturing companies now have more resources, and thus are consistently building vehicles of a higher quality. Davey: I would say that customer expectations have shifted. They expect variety and options, not just with manufacturers, but also with options for purchase, lease, and rent. Listening to their needs has never been more important because they are well-acquainted with what they need and have an expectation for us to deliver. Schetky: The state of the small and midsize market is beginning to look better. During the economic downturn, manufacturers recognized the lack of transit agency funding, and began marketing low-cost buses that were not designed for transit-use as a comparable product. These buses are referred to as Bid-Buses, in that they are priced the lowest and can win bids that only take lowest-cost into consideration for award. What was discovered, though, was that these Bid-Buses were not built to withstand the rigors of transit use. For church use, where the bus might be driven two-thousand miles per year, these buses can occasionally work, but not for transit. As everyone knows, the true cost of a vehicle is called its Total Cost of Ownership. This is a “buzz phrase” that has been repeated millions of times, but its familiarity shouldn’t cheapen its impact. It is a very