EDITORIAL: Bus prices rapidly on the rise

By: Chris Smith

Bus prices are going to go up because the global steel industry continues to experience a volatile upwards shift in

Bus prices are going to go up because the global steel industry continues to experience a volatile upwards shift in pricing.

The evening news mentions new housing prices will be affected but neglected to show the significant increase in everything else that relies on steel including buildings, bridges, trucks, trains, cars and of course buses.

Some manufactures have been able to hold back on raising the price of buses because they buy in mass quantities and a have existing dated contracts which haven’t yet lapsed, other body builders have tried to absorb the costs and some local body builders have added the costs in incrementally.

There is a shock in store mid-2009 for operators looking to expand their fleets when prices are tipped to rise even more.

The reality is steel products have risen by over 25 percent in the last six months and it looks like the equation adopted by fuel prices is being mirrored by steel, and other metal, prices.

It is impossible to predict the end of this volatility, however market indications suggest that prices will remain at this higher end of the spectrum and demand will also remain high for the foreseeable future.

Robert Gell in his seminar on climate change at the recent BusVic Bus Expo mentioned not only have we reached peak oil, but peak iron ore, peak water and probably peak everything else and it is time we re-evaluate how we use our resources

The reality with costs going up, and manufacturing and processing at capacity, we as an industry has to educate the general population to rapidly change the way it uses our resources, including the way we transport goods, build, farm and travel.

We would also like to thank BusVic for putting on a well balanced, informative and entertaining show on Monday and Tuesday.

For delegates, the Bus Expo was a perfect balance of relevant workshops and seminars and a great chance to look at the latest product offerings and catch up with their peers in their respective parts of the industry.

We would also like to thank Hi Tech Rear Vision for the rear vision camera give-a-way and will let you know who won in the July ABC magazine.

Subscribe to our newsletter

Sign up to receive the ABC e-newsletter, digital magazine and other offers we choose to share with you straight to your inbox

You can also follow our updates by liking us on Facebook