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Small Bus OEMs Eye the Challenge of the MFSAB
(January 2005)

Bus manufacturers reported in the 2005 STN Buyer's Guide building 9,267 small school buses during the 12 months of the 2003-04 school year. While that is below the historic high of 10,475 during the 1998-99 school year, this segment of the school bus market is not only the scene of fierce competition by bus OEMs, it is a market in flux.

The multifunction school activity bus burst onto the scene last year, jumping to more than 1,800 units from 32 the year before. IC Corp. is entering the fray with its new BE200 Type B small bus. And GMC is coming back into the industry with a diesel-powered cutaway chassis sometime this summer.

In an effort to clarify matters, the editors of STN posed the same three questions to each bus OEM active in this segment of the market. Moreover we are providing some basic information about each company. Additional data about any of these bus products can be found at the manufacturer's websites, also listed here

Blue Bird Corporation

Parent Company: Blue Bird Corp., Peach County Holdings Inc.
Ownership: Private ownership
Year Company Originally Founded: 1927
Year first offered small school bus: 1987
Number Small Bus Distributors: 52
Current Employees: 2,200 (approximately)
Website for product information: www.blue-bird.com
Small Bus Products: SRW and DRW Wheel Multi-function School Activity Bus for 10-30 passenger capacity, SRW Type A-1 Micro Bird School Buses for 10-20 passenger capacity, DRW Type A-2 Micro Bird School Buses with 14-30 passenger capacity.

Q) What is the single most important distinguishing feature of your small school bus line of products, compared to any of the other competing products on the market?

Floyd Barkman , Blue Bird National Sales Director, Small Bus Products) Micro Bird buses offer the most standard features in the industry. Like energy absorbing rubber isolator body mounts and full acoustical ceiling panels for quiet, smooth rides. Along with AM/FM/CD radios, tinted windows, heated mirrors, and locks for all doors.

Q ) Do you think the Multifunction School Activity Bus will ever surpass the standard Type A-1 and A-2 small school buses as we now know them?

Barkman) The traditional yellow school bus, with warning lights and stop arms, will continue to be the leading consumer product. Its unparalleled safety record and the fact school buses are still required to have these two important features, for transporting students between home and school, will continue to lead the sale of MFSAB vehicles. The MFSAB will be primarily sold to Head Start and child care facilities which account for less than 20% of the student buses in operation today.

Q) What sets your company apart from your competitors?

Barkman) More than 77 years manufacturing safe, reliable, quality school bus products gives Blue Bird a leading advantage in the industry. And our North America distributor organization provides the industries best sales support with excellent service, parts, and flexible lease and finance programs.

Collins Bus Corporation

Parent Company: Collins Industries, Inc.
Ownership: Publicly traded on NASDAQ, Stock symbol: COLL
Year Company Originally Founded: 1967
Year first offered small school bus: 1967
Number Small Bus Distributors: 35
Website for product information: www.collinsbus.com
Small Bus Products: Chevy Bantam, Chevy Super Bantam, Chevy Grand Bantam, Ford Bantam, Ford Super Bantam, Ford Grand Bantam, Bantam XL, Child Care Bus, Activity Bus, Single and Dual Rear Wheel Multifunction School Activity Bus

STN) What is the single most important distinguishing feature of your small school bus line of products, compared to any of the other competing products on the market?

Paul Kessler , President) For over 35 years, we've been the leader in the Type-A market. From the first small school bus in 1967, to the development of the first flat floor bus, to producing the first low profile bus, to making seatbelts standard in all our buses, Collins Bus is 100% focused on the Type-A market.

STN) Do you think the Multifunction School Activity Bus will ever surpass the standard Type A-1 and A-2 small school buses as we now know them?

Kessler) We believe the market is mutually exclusive between yellow and white bus sales. Certainly, transportation officials have increasingly become aware of the high safety standards certified buses provide over nonconforming vans. And innovative products like our certified Low Profile Activity Bus offer school districts viable alternatives to nonconforming vans. But only time will tell whether white will eventually surpass yellow.

STN) What sets your company apart from your competitors?

Kessler) Collins Bus is an ISO 9001 certified manufacturer -- the only dedicated Type-A manufacturer with such an illustrious designation. We're committed to providing our customers with the highest quality and safest product in the Type-A market. These concentrated efforts on one product line have made us "the small school bus company" in the school bus industry.

Corbeil

Parent Company: Les Enterprises Michel Corbeil Inc.
Ownership: Privately ownership
Year Company Founded: 1936 (original company)
Year first offered small school bus: 1986
Number Small Bus Distributors: 11
Current Employees: 340
Website for product information: www.corbeilbus.com
Small Bus Products: Single and Dual Wheel Type A Mini Buses, Multifunction School Activity Buses

STN) What is the single most important distinguishing feature of your small school bus line of products, compared to any of the other competing products on the market?

Gary Plumton, V.P. Sales, USA ) We are the only company to test our product for 7 years and 200,000 miles. We have customers who have had our buses on the road for 14 years. So longevity is huge. Our president, Michele Corbeil has said, "I don't want to ask customer to buy the bus I build, I want to build buses the customer wants to buy." So we have high quality buses that are dependable. Plus we are the bus company with the happy face logo, and that is unique and recognizable.

STN) Do you think the Multifunction School Activity Bus will ever surpass the standard Type A-1 and A-2 small school buses as we now know them?

Plumton) No

STN) What sets your company apart from your competitors?

Plumton) We are a privately-held company so that means we play with our money. Competitors play with someone else's money.

Girardin Minibus

Parent Company: A. Girardin, Inc.
Year Company Founded: 1966
Ownership: 100% family owned
Year first offered small school bus: 1966
Number Small Bus Distributors: 46
Current Employees: 200
Website for product information: www.girardin.com
Small Bus Products: MBII - single rear wheel, 18-20 passengers; MB-IV dual rear wheel, 18-30 passengers; and the Multifunction School Activities Bus. All three product lines are mounted on the Ford E-350, Ford E-450 or GMT-610 cutaway chassis.

STN) What is the single most important distinguishing feature of your small school bus line of products, compared to any of the other competing products on the market?

Steve Girardin , President Girardin Minibus) The full floating oval body is the most distinguishing feature of the Girardin Minibus product, providing wider seating and aisle for increased safety. Double action rubber pucks and rubber gaskets enhance safety and comfort.

STN) Do you think the Multifunction School Activity Bus will ever surpass the standard Type A-1 and A-2 small school buses as we now know them?

Girardin) The Multi-Function School Activity Bus or MFSAB is a giant step forward in providing safe transportation. As a replacement for 15 passenger vans, it should someday surpass the sales volume of the type "A" school buses because of its various applications and versatility. Applications for this vehicle are airports, parking, nursing homes, hotels, churches, universities, child care, head start, community shuttle, etc. It is the only vehicle able to transport both adults and children while meeting rigorous school bus construction standards. The MFSAB should become the Community Bus serving rural communities and head start transportation requirements throughout the US .

STN) What sets your company apart from your competitors?

Girardin) Girardin Minibus has always offered its customers the best small school buses on the market without compromising quality, safety, innovation, and service. Girardin was the first to introduce rubber mounting pucks, enlarged view windows, oval body, aluminum paneling, full glass entrance door and much more.

IC Corporation

Parent Company: International Truck & Engine Corporation
Ownership: Publicly traded on S&P500, Stock symbol: NAV
Year Company Founded: 2003
Year first offered Type B small bus: Summer 2005
Number Small Bus Distributors: 46
Current Employees: 15,000
Website for product information: www.nav-international.com
Small Bus Products: CE200 (Type B), Multifunction School Activity Bus

STN) What is the single most important distinguishing feature of your small school bus line of products, compared to any of the other competing products on the market?

David Hillman , Director Bus Marketing, IC Corp.) The single most compelling feature about our new BE 200 product is that it is the only fully integrated small bus on the market, meaning that the chassis and body are built together in the same factory and are sold, warranted, and supported by your IC dealer.

STN) Do you think the Multifunction School Activity Bus will ever surpass the standard Type A-1 and A-2 small school buses as we now know them? 

Hillman)   We do not think the MFSAB will overtake the small bus market from an annual volume standpoint, but we are confident that the new BE 200 product will excel in both MFSAB and pupil transport applications, specifically special needs and regular routes. 

STN) What sets your company apart from your competitors?

Hillman) IC Corporation is different from the competition because of our commonsense design approach to customer-focused integrated products, dedicated high-quality bus manufacturing plants, and our world class distribution channel.

Midbus Corporation

Parent Company: Collins Industries, Inc.
Ownership: Publicly traded on NASDAQ, Stock symbol: COLL
Year Company Founded: 1981
Year first offered small school bus: 1981
Number Small Bus Distributors: 60
Website for product information: www.midbus.com
Small Bus Products: Mid Bus Single Wheel, Mid Bus Guide DW, Mid Bus Guide XL, Mid-Bus Multifunction School Activity Bus

STN) What is the single most important distinguishing feature of your small school bus line of products, compared to any of the other competing products on the market?

Paul Kessler , President) Our proximity to the Northeast part of the country and our specialized commitment to the Type-A market, allows Mid Bus to offer our customers with a high quality, low cost solution to all their Type-A transportation needs.

STN) Do you think the Multifunction School Activity Bus will ever surpass the standard Type A-1 and A-2 small school buses as we now know them?

Kessler) The eventual volume split between traditional and non-traditional buses is unknown. However, at Mid Bus we certainly see an increase in non-traditional distribution for the MFSAB. And with more regulations being passed every year prohibiting nonconforming van usage by school transportation providers, the MFSAB classification and distribution will most certainly continue to grow.

STN) What sets your company apart from your competitors?

Kessler) Mid Bus is a wholly-owned subsidiary of Collins Industries, Inc., North America 's largest manufacturer of small school buses. And with nearly 25 years of experience as a Type-A manufacturer, we remain dedicated to manufacturing the highest quality small school buses for the best value in the industry.

 

Thomas Built Buses

Parent Company: Freightliner Corp., a DaimlerChrysler Company
Ownership: Publicly held, parent company stock symbol: DCX
Year Company Founded: 1916
Year first offered small school bus: 1982
Number Small Bus Distributors: 60
Current Employees: 1,600
Website for product information: www.thomasbus.com
Small Bus Products: Type A Minotour Small Bus, Multifunction School Activity Bus

STN) What is the single most important distinguishing feature of your small school bus line of products, compared to any of the other competing products on the market?

Ken Hedgecock , Director, N.A. Bus Sales, Thomas Built Buses) Thomas has successfully applied materials and manufacturing methods from its larger platforms to its type A offerings giving the Minotour the best durability, reliability and lifecycle cost in the category.  (Please use the attached photo and caption.)

STN) Do you think the Multifunction School Activity Bus will ever surpass the standard Type A-1 and A-2 small school buses as we now know them?  

Hedgecock) Most yellow bus users began moving from vans to Type A school buses long ago, so new sales opportunities in that segment are limited.  Promising growth lies ahead in the MFSAB segment as more and more non-van users migrate to compliant vehicles, but to surpass yellow bus sales does not seem likely.  

STN) What sets your company apart from your competitors?

Hedgecock) Thomas' rich heritage and our outstanding dealer network combined with support from the world's largest commercial vehicle manufacturer, DaimlerChrysler, set us apart as a leader in new technology, durability and customer support.

 

U.S. Bus Corporation

Parent Company: U.S. Bus Corp.
Ownership: Family owned
Year Company Founded: 1998
Year first offered small school bus: 1998
Number Small Bus Distributors: 24
Current Employees: 80 (approx)
Website for product information: www.usbuscorp.com
Small Bus Products: 42 Passenger Sturdibus HD 5500, Safetran, Universe, Sturdibus, Sturdibus HD, Non-Conforming Van Alternatives, Multifunction School Activity Bus.

STN) What is the single most important distinguishing feature of your small school bus line of products, compared to any of the other competing products on the market?

Evan Kushner, President, U.S. Bus) Starting this year we are offering a completely new product line. Our new buses will offer the customer the best quality and fit & finish on the market, with the most standard features. Due to new manufacturing efficiencies we will be able to offer all of this and still compete with the low priced "bid buses" on the market.

STN) Do you think the Multifunction School Activity Bus will ever surpass the standard Type A-1 and A-2 small school buses as we now know them?

Kushner) Eventually the MFSAB will surpass the Type A school bus in volume. There are a huge amount of non-conforming vans still being used by religious groups, day cares, private schools, colleges, etc. Eventually the operators of these vehicles are going to be forced to convert their fleets to MFSAB's. Pressure is being applied from lawmakers as well as insurance companies, and even parents. The yellow bus industry doesn't compare in size to the combined size of the organizations still using these non-conforming vehicles, so it is only natural that the MFSAB will surpass the yellow Type A in volume.

STN) What sets your company apart from your competitors?

Kushner) U.S. Bus is in a unique position. We are large enough to handle whatever business comes our way and yet small enough to respond to our customers needs quickly. Everyone from the President down is fully accessible to our dealers and even to the end user of our product.

Source: Reprinted from School Transportation News
January, 2005. All rights reserved.



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