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The purpose of this analysis is to assess the importance of productivity improvement to the transit industry and to identify opportunities to enhance the industry's productivity record. This report discusses the steady decline in transit ridership during the post war period and the industry's deficits and growing dependence on public subsidies. The postwar problems of industry are partly attributed to the failure of productivity growth in transit to keep pace with that in other industries. It is suggested that an improved productivity record would probably be necessary, although not sufficient, to reverse the industry's ridership decline and its growing dependence on public subsidies. This report discusses a variety of opportunities to improve transit productivity that are possible by changing current industry practices in such areas as marketing, labor relations, and work rules. These opportunities to improve transit productivity are sorted into three groups, each incorporating a distinct strategy for productivity gain. The first of these strategies is to alleviate the productivity problems associated with the peaking of transit use during weekday rush hours. Discontinuing less productive services is a second strategy for productivity growth that is discussed in this report. The third strategy to improve productivity involves specialization; that is, the tailoring of equipment, fares, and other practices to the peculiar needs of different transit services and situations.
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