The other day, I heard a great success story from a man who thanked me for the work DOT's Recovery Act grants had stimulated. He had in mind, specifically, our Federal Transit Administration grants that have allowed local and regional transit
districts to upgrade and expand their fleets in times of strapped budgets.
Because of the Obama Administration's stimulus, he said, the Gillig Corporation, a 100% American bus manufacturer in California, had not only been able to retain its workforce in threatening times, but had added workers and was even working a shift on Saturdays.
The first of 14 new Gillig-made buses for the Whatcom Transportation Authority (WA)
Now, I've heard a lot of anecdotes like this in the past 14 months. Recovery Act grants have allowed transit agencies to purchase over
12,000 new buses, rail cars, and paratransit vans. In Tennessee, for example, a grant to the Memphis Area Transit Authority allowed them to order 26 new vehicles from Gillig.
So we decided to follow up on this story by calling Gillig and chatting with their President, Denny Howard. Here's what he had to say:
"I've been with Gillig for 32 years, so I've been watching the transit industry for decades. I meet with managers from transit agencies every day, and I have never seen the local funding in such desperate straits as today.
"A typical year industry-wide, agencies buy about 5,000 buses a year. With the stimulus, it's up to 7,000 for last year, this year, and next year. But, if the stimulus hadn't come through, the market would have dropped 40% to 3,000 buses a year for last year, this year, and at least through next year.
This Gillig hybrid-electric rolls for the Redwood Transit System
"That would have devastated our employees. I've heard the talk about the stimulus not creating enough jobs, but you never read a statistic about the number of jobs saved. We would have had to lay off 175 workers--more than 25% of our people.
"And there's a multiplier effect, too. Every base manufacturing job is worth five jobs down the supply chain. You can imagine how that would have knocked our suppliers.
"So even if we hadn't added workers, I'd call the Recovery Act a success. But we did. We added 40 people last year, and we know we're keeping them through at least 2011. And that has the same multiplier effect with our suppliers, but in a positive direction.
"Typically, we produce 25 vehicles a week. With the stimulus, we're up to more like 30. Without it, we'd be down to 20. There's a big difference between 20 and 30, a big difference.
"There's not a worker in our plant who doesn't know someone who's been laid-off. The fact that our people are not only secure but getting the opportunity to work some overtime on Saturdays is just phenomenal. I mean, they are eager to come to work on a Saturday.