New Stimulus Orders Stabilize Bus Industry

Because local governments are strapped for cash, some companies braced for a slowdown in transit spending. The stimulus is more likely to keep things stable than send sales booming, industry executives said.

"The initial forecasts from a number of customers looked pretty bad," said Jack Schimenti, vice president of Lincoln Composites, of Lincoln, Nebraska, which makes fuel systems for bus manufacturers.

Thanks to the stimulus law, forecasts are more stable now. Schimenti expects stimulus-related orders to begin late this year.

At North American Bus Industries of Anniston, Alabama, it's the same story.

"It helps preserve the jobs that we have," said Joseph Gibson, senior vice president for sales. "We don't have plans for any massive hiring. Right now we're just trying to maintain stability."

New Flyer Industries, a Canadian company that runs manufacturing plants in Minnesota, said its sales were up before the stimulus and the new spending will probably keep sales and employment stable. In March, an administration task force on the middle class, led by Vice President Joe Biden, held a session at a New Flyer bus garage in St. Cloud, Minnesota.