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June 17, 2026|Philip Plotch and Grace Truslow
To help transit agencies purchase better buses at lower cost with shorter delivery times, Eno has released “Customization, Competition, and Costs: Findings and Recommendations for the U.S. Transit Bus Industry.”
This report examines one of the most important but least understood factors shaping the U.S. transit bus market: customization. Unlike automobiles, which are produced in large volumes with limited variation, U.S. transit buses are often manufactured in small batches to meet agency-specific requirements.
Transit agencies customize nearly every aspect of a bus, from screws to seating configurations. Customization is not inherently bad. A bus that works well in one region may not meet the needs of another. The problem is that transit agencies are specifying so many non-standard components that manufacturers must manage more engineering work, more suppliers, more parts, and more risk. These inefficiencies are ultimately reflected in higher bus prices, quality issues, and longer delivery times.
This report presents a set of complementary recommendations. More education and transparency will provide agencies with information they need to make more informed procurement decisions. Disclosure requirements will encourage agencies to identify and justify major departures from standard practice. Developing shared specifications will create common standards for buses, while changes in federal law will reward agencies that adopt those standards and use more efficient procurement approaches.
Eno Center for Transportation & CALSTART
What does a transit bus cost?
Median procurement prices across 1,627 contracts from U.S. transit agencies, 2015–2025. All prices in constant 2023 dollars.
Diesel
$591K
median price
CNG
$657K
median price
Diesel Hybrid
$890K
median price
Battery Electric
$1,074K
median price
Hydrogen
$1,367K
median price
Records
1,627
42 states + Canada
“As someone who cares deeply about the health of American transit, I found this report to be an invaluable resource. It approaches a difficult subject with rigor and balance, and its recommendations offer practical, achievable steps that can benefit every stakeholder in the industry — from the smallest transit agency to the largest manufacturer.”
Buddy ColemanChief Customer Officer at Clever Devices
“It was an honor to work with industry and academic leaders to identify the drivers of rising bus costs and develop actionable recommendations. While the issue is complex, the report outlines a clear path forward, grounded in transparency and consistent reporting to help decision makers identify cost drivers and incentivize standardization. This approach is especially effective when paired with future assessments of the impact of implemented actions and further refinements, as necessary.”
Omar ElmessalamyDirector of Equipment Design and Engineering at NJ Transit
“This report offers a timely and practical perspective on one of the key considerations shaping the U.S. transit bus industry: how customization influences cost, competition, and delivery. Drawing on insights from both transit agencies and manufacturers, it highlights actionable steps toward more consistent and cost-effective procurement approaches. The result is a well-grounded resource that can help leaders at the federal, state, and local levels better align bus transit investments to deliver meaningful outcomes for the traveling public.”
K. Jane Williams Senior Vice President, HNTB (and former senior advisor at the U.S. Department of Transportation and FTA acting administrator)
“This report reflects a significant and thoughtful effort, led by Eno, to address the critical issue of customization in the transit bus market. I appreciate the collaboration that went into producing such a timely and valuable contribution.”
Leroy Jones Senior Vice President, HNTB (and former senior advisor at the U.S. Department of Transportation and FTA acting administrator)
“While the number of transit vehicles purchased in the United States in any given year is relatively small, each purchase is complex for a variety of reasons. The research shows that customization is required to some extent to meet local needs and, at the same time, needs to be done strategically so that costs can be managed. This research takes a close look at this complexity and offers valuable recommendations to make these purchases more efficient and cost effective.”
Doran J. BarnesChief Executive Officer at Foothill Transit
“The health and welfare of transit bus manufacturing in the US is critical to meeting the ongoing need to provide safe, clean, reliable, and comprehensive public transportation services. Increasing capital and operating costs have caused agencies to cut back on transit service, which is counter to their mission and the public good. This report provides an understanding of the complexities that impact bus costs and the challenges of changing the current system to reduce costs. Industry stakeholders should carefully consider the findings and recommendations identified in the report as a step toward implementing change for market stabilization and the health of the nation’s public transportation systems.”
Stephen ClermontManaging Director of Planning & Deployment at Center for Transportation and the Environment
“Having worked across transit manufacturing, fleet operations, and aftermarket support, I have seen firsthand how excessive customization drives cost, complexity, and delivery risk. The recommendations in this report provide a practical roadmap to improve affordability, reliability, and competitiveness for transit agencies and manufacturers alike.”
John WalshAdvisor at Power Parts and former President of PhoenixEV
“This report is a valuable contribution to the discussion on how to improve efficiency, transparency, and competitiveness in the U.S. transit bus market. While Nova Bus closed its U.S. manufacturing facility in 2025, we continue to actively supply buses and support customers throughout the United States from our Canadian operations. This reflects the highly integrated nature of the North American bus industry. We strongly support the report’s focus on more consistent procurement practices and greater standardization as key enablers of a stronger and more sustainable market.”
Christos KritsidimasVice President at Nova Bus
“We have heard from transit leaders across the country that the rising costs of buses and delays in delivery represent a real threat to the industry — making it more difficult to maintain a state of good repair and ultimately hurting their ability to provide affordable and reliable service. We are grateful for Eno’s efforts to shine a light on this issue and present solutions to get to the heart of the problem.”
Ed RedfernExecutive Director of the Bus Coalition
