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January 14, 2010
The operation and expansion of modern transit systems present economic opportunities similar to other capital, technology, and skill intensive industries. The public transportation industry includes manufacturers, builders, and operators of trains, streetcars, and buses; engines and electric drive systems; information, communications and control technology; maintenance and safety systems; and rail lines, bus lanes, transit stations, and other infrastructure. These supply chains are supported by established companies as well as new start-up businesses in all regions of the country. The manufacture of advanced, energy-efficient transit vehicles are a significant and growing segment of the industry. More than 30 percent of transit buses, for instance, now use an alternative drivetrain system.
High-performance transit systems have been a critical part of economic development strategies for many large metropolitan areas as well as smaller cities and towns in the United States. Certain regions that have been particularly hard-hit by the economic recession are planning improvements to existing transit systems and creation of new transit capacity as part of their vision for future economic development.
On January 14, 2010, the Environmental and Energy Study Institute (EESI) held a briefing on the job creation and economic development impacts of public transportation. Legislation pending before Congress to help sustain job growth and economic recovery (H.R. 2847, Jobs for Main Street Act) contains targeted investments to stimulate job creation and lay a foundation for long-term productivity gains. This briefing examined the potential for public transportation investments to expand U.S. heavy-duty equipment manufacturing; increase employment in construction, operation, and maintenance occupations; and support regional economic development strategies. Speakers discussed recent research by Duke University on high-value manufacturing supply chains associated with public transportation, as well as practical experience in using transit to spur regional economic revitalization.