COVID-19 Pandemic Threatens Public Transit Businesses Key Takeaways 1. More than three in four businesses (76 percent) have seen a reduction in their transit industry business as a result of the COVID-19 pandemic. On average, businesses have seen a 40 percent reduction in activity 2. In 2020, 32 percent of businesses were forced to lay off employees and 11 percent have been forced to close a facility. In addition, more than one-half of public transit businesses (53 percent) have cut back on hiring 3. If Congress does not provide additional emergency funding for transit, nearly four in 10 businesses (38 percent) will be forced to consider additional layoffs 4. One of every five businesses (22 percent) are concerned they may go out of business due to the pandemic The financial pressures faced by public transportation agencies are having a significant impact on public transit industry businesses as well. Three quarters of businesses (76 percent) have seen a reduction in their business due to the pandemic. On average, businesses have seen a 40 percent reduction in activity. Have you seen a reduction in your transit business due to the pandemic? No 24% Average Reduction in Business: Yes 40% 76% JANUARY 2021 One-third of businesses (35 percent) have furloughed employees as a result of the pandemic. More than one-half (53 percent) of businesses have cut back hiring, four in 10 businesses (39 percent) have deferred investments in their company, and 11 percent have been forced to close a facility. Which of the following actions you have already taken due to the COVID-19 pandemic? Furloughed Employees 35% Laid Off Employees 32% Cut Back Hiring 53% Closed Facility 11% Deferred Investments in Your Company 39% Shifted Operations/Business Development to Other 7% Countries Other Action Taken 28% 0% 10% 20% 30% 40% 50% 60% If Congress does not provide additional emergency funding for transit, nearly four in 10 businesses (38 percent) are considering laying off employees and nearly one in five businesses (17 percent) are considering closing a facility. Without additional emergency funding for transit, which of the following actions are you considering? Furloughing Employees 39% Laying Off Employees 38% Cutting Back Hiring 55% Closing Facility 17% Deferring Investments in Your Company 45% Shifting Operations/Business Development to Other 13% Countries Other Action 14% 0% 10% 20% 30% 40% 50% 60% COVID-19 PANDEMIC THREATENS PUBLIC TRANSIT BUSINESSES JANUARY 2021 One of every five businesses (22 percent) are concerned they may go out of business due to the pandemic. Are you concerned that you may go out of business due to the COVID-19 pandemic? Yes 22% No 78% About the Survey This survey of APTA business members was conducted in January 2021. One hundred and fourteen (114) APTA business members, representing a variety of sectors, responded. Which best describes your business? 46% 50% 40% 33% 30% 20% 10% 10% 5% 5% 0% Other Transit Management Manufacturer Contractor Consultant Company COVID-19 PANDEMIC THREATENS PUBLIC TRANSIT BUSINESSES JANUARY 2021 The American Public Transportation Association (APTA) The American Public Transportation Association is a nonprofit international association of 1,500 public and private sector organizations that represents a $74 billion industry that directly employs 435,000 people and supports millions of private sector jobs. APTA members are engaged in the areas of bus, paratransit, light rail, commuter rail, subways, waterborne services, and intercity and high-speed passenger rail. This includes transit systems; planning, design, construction, and finance firms; product and service providers; academic institutions; transit associations and state departments of transportation. APTA is the only association in North America that represents all modes of public transportation. APTA members serve the public interest by providing safe, efficient and economical transit services and products. Author For General Information Matthew Dickens Ward W. McCarragher Senior Policy Analyst Vice President, Government Affairs and 202.496.4817 | [email protected] Advocacy 202.496.4828 | [email protected] APTA Vision Statement APTA leads public transportation in a new mobility era, advocating to connect and build thriving communities COVID-19 PANDEMIC THREATENS PUBLIC TRANSIT BUSINESSES JANUARY 2021