The supply chain for public transportation is as deep as it is wide, touching every corner of the country and employing thousands of Americans who produce everything from tracks, to seats, windows, communications equipment, wheels and everything else in between. As just a snapshot, recent capital improvements made in just four transit systems — San Francisco, Denver, Chicago, and Portland — supported jobs in 21 states.

Heavy cuts to federal transit spending, as proposed by Congress, would have a devastating effect on these local businesses and the tens of thousands of jobs they support. Without continued federal support, transit projects underway could stall, new or planned projects would be postponed or canceled, and transit agencies would scale back or cancel orders of new railcars or buses. The factories and suppliers that produce or manufacture components for transit systems would have to downsize or shutter without a steady pipeline of projects.

To preserve these jobs and support main streets from coast to coast, Congress and the administration should support and fund the Transit Capital Investment Grants (CIG) Program at or above FAST Act levels of $2.3 billion each year.

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A closer look at three transit manufacturers

New Flyer

New Flyer is the largest bus manufacturer in North America, employing more than 4,000 workers in the United States. The company’s footprint includes 31 manufacturing, assembly, distribution and service facilities in North America, including facilities in thirteen states.

The company’s growing business serving public transit agencies across the country is closely tied to steady and predictable federal funding. Ninety percent of the company’s $2 billion in annual business comes from public transit agencies. Federal grants make up some share of the funding for nearly all of those purchases and almost none of the agencies would be able to make their purchases of new buses with local funding alone.

New Flyer delivered 877 buses to transit agencies across the country in the third quarter of 2017 and projects to manufacture 3,800 buses in fiscal year 2017.  The company has outstanding orders and options for more than 10,000 buses. In the transit industry, new buses are paid for on delivery, so while New Flyer has a two-year backlog of orders and options, it will only be able to keep completing orders if transit agencies have the federal funding they have expected and budgeted for.

The 87-year old, publicly traded company is headquartered in Winnipeg, Canada but approximately three quarters of its workforce is based in the United States. New Flyer’s buses are assembled at three major assembly plants, in St. Cloud and Crookston, Minnesota and Anniston, Alabama, and are built with more than 60 percent U.S.-made components, meeting Buy America standards.

The Anniston facility is the site of the brand new Vehicle Innovation Center opened in October 2017. The $4 million facility will allow the company to lead the development of new vehicle technologies to serve the future needs of the public transit industry.

“This center will lead development of the future of transit technology, including autonomous driving and electric systems … and it’s all designed and developed right here in Anniston,” said Wayne Joseph, President of New Flyer’s Transit Bus Business, at the ribbon cutting event for the new facility. “We look forward to making a positive impact on the community and on innovation and jobs.”

Automated Railroad Maintenance Systems (ARMS)

ARMS produces power, train control, signaling, communications systems and electronics for public transit, passenger, and freight railroads across the country.

Their current public transit and intercity passenger rail contracts total approximately $7 million, accounting for 20 percent of all business at their sole facility in O’Fallon, MO. The company has been based in the St. Louis region for thirty years.

ARMS’s transit customers depend on federal funding for major new construction projects “From what we understand there is about $6 billion in federal funding that goes into various transit programs. That’s the main life-blood of this industry,” said Mike Monaco, VP of passenger sales. “Obviously, any kind of reduction of federal funding would be a big factor.”

Monaco estimates that if federal funding for new transit construction were cut, their business would have to cut back by 15 to 20 percent, likely requiring reductions in staff.

Cleveland Track Material

Cleveland Track Material manufactures rail tracks and components, supplying transit agencies and railroads in the U.S., Canada, and Mexico.  The company employs 150 at its Cleveland, OH, headquarters, where it was founded in 1984. The company employs an additional 45 people in Memphis, TN, at a facility operated since 1994, and 30 workers in its Reading, PA facility opened in 2007.

Approximately 40 percent of Cleveland Track Material’s business comes from contracts to supply public transit systems.

Of all the factors facing the company, “declining funding would have the biggest impact,” said Sandy Reik, Sales Coordinator, who has been with the company for more than twenty years.