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US cities pay too much for buses

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Re: US cities pay too much for buses

#2
> "A new paper argues that lack of competition, demand for custom features and “Buy America” rules have driven up costs for transit agencies in the US."

If that's not the most NYC finance-centered headline ever, I don't know what is.

"If we just offload our bus-building industry to somewhere else, we could save $x on taxes each year. Yeah, it eliminates jobs and is another blow against strategically-important heavy industry, but please, think of my balance sheet!"

Re: US cities pay too much for buses

#3
A lot of fluff (although I do appreciate the hard numbers and reasons - thirteen shades of grey for flooring is utterly ridiculous) for essentially these two points:

- low lot size combined with a lot of customization demands leads to high per-unit costs

- "Buy American" is expensive. D'uh. Unfortunately the article doesn't dig down deeper into why BYD and other Chinese manufacturers are cheaper - 996 style slave labor production, a lack of environmental protection laws and, most notably, a lot of state/regional subsidies artificially dumping prices below sustainability not just against American companies but against other Chinese companies.

Re: US cities pay too much for buses

#4
Not sure why transit agencies are still paying for custom paint schemes or colors when they just turn around and wrap the whole bus with advertising. Just buy a plain white bus.

The article didn't mention corruption but I would not rule it out. Follow the money. Whose pockets are being filled when one transit agency is paying 2x what another one does for the same bus.

Re: US cities pay too much for buses

#5

> "A new paper argues that lack of competition, demand for custom features and “Buy America” rules have driven up costs for transit agencies in the US." If that's not the most NYC finance-centered headline ever, I don't know what is. "If we just offload our bus-building industry to somewhere else, we could save $x on taxes each year. Yeah, it eliminates jobs and is another blow against strategically-important heavy i…

[deleted]

Re: US cities pay too much for buses

#6

Not sure why transit agencies are still paying for custom paint schemes or colors when they just turn around and wrap the whole bus with advertising. Just buy a plain white bus. The article didn't mention corruption but I would not rule it out. Follow the money. Whose pockets are being filled when one transit agency is paying 2x what another one does for the same bus.

Since they are often adorned with ads, I'm not sure why they pay for anything at all.

Re: US cities pay too much for buses

#7
I think this shows one of the downsides of trade barriers very well: You get stuck with undesirable industries (diesel bus manufacturing), binding capital and labor better used elsewhere (and you easily end up with underperforming, overpriced solutions, too).

But I'm curious how much this actually affects transport costs. If such a bus is used 12h/day, then even overpaying 100% for the vehicle should get outscaled by labor + maintenance pretty quickly, long before the vehicle is replaced...

Re: US cities pay too much for buses

#8

A lot of fluff (although I do appreciate the hard numbers and reasons - thirteen shades of grey for flooring is utterly ridiculous) for essentially these two points: - low lot size combined with a lot of customization demands leads to high per-unit costs - "Buy American" is expensive. D'uh. Unfortunately the article doesn't dig down deeper into why BYD and other Chinese manufacturers are cheaper - 996 style slave lab…

> 996 style slave labor production, a lack of environmental protection laws and, most notably, a lot of state/regional subsidies artificially dumping prices below sustainability not just against American companies but against other Chinese companies.

Silicon Valley CEOs saw this and thought it should be their playbook. So hell, maybe made in America will eventually get cheaper as this innovative economic and social system sees adoption by brave pioneers.

Re: US cities pay too much for buses

#9
post #8

A lot of fluff (although I do appreciate the hard numbers and reasons - thirteen shades of grey for flooring is utterly ridiculous) for essentially these two points: - low lot size combined with a lot of customization demands leads to high per-unit costs - "Buy American" is expensive. D'uh. Unfortunately the article doesn't dig down deeper into why BYD and other Chinese manufacturers are cheaper - 996 style slave lab…

> 996 style slave labor production, a lack of environmental protection laws and, most notably, a lot of state/regional subsidies artificially dumping prices below sustainability not just against American companies but against other Chinese companies. Silicon Valley CEOs saw this and thought it should be their playbook. So hell, maybe made in America will eventually get cheaper as this innovative economic and social s…

More likely that the companies that institute this will hemorrhage talent that is offered a better deal by competitors. 996 works because the supply of Engineers is quite high in China.

Re: US cities pay too much for buses

#10

> "A new paper argues that lack of competition, demand for custom features and “Buy America” rules have driven up costs for transit agencies in the US." If that's not the most NYC finance-centered headline ever, I don't know what is. "If we just offload our bus-building industry to somewhere else, we could save $x on taxes each year. Yeah, it eliminates jobs and is another blow against strategically-important heavy i…

imagine how much money the government could save by just continuing to collect taxes and not providing any services! we could privatize everything!
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