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Redflex operate at a loss in the US


Article by: Mike Barrett
Date: 13 Nov 2014

pocketgpsworld.com
The Australian photo enforcement company Redflex operates at a loss in the United States, it's largest market. The US generates 68% of Redflex's revenue but is not able to make a profit in the current climate. Redflex is the second largest of the enforcement companies operating in the US

The reasons for the loss are reported to be costs associated with the Chicago corruption investigations, delayed deployment of the Student Guardian systems, lower profit margins and contract terminations.

All of this is in the climate of increasing hostility to the programs from both the public and politicians and a fluctuating legal framework that is being constantly challenged. Coupled with this is the fact that the US Market is quite mature with a lot of negative reporting in the media creating a poor environment for the retention of existing business let alone generation of new business.

The Student Guardian system is designed to ensure that traffic stops in both ways when a school bus has the stop signs deployed. The law in the US states that when a school bus is loading or unloading students then red lights flash and the stop signs swing out no overtaking of the bus is permitted. This is to protect the children and reduce instances of a child being run over. The Student Guardian system uses a number of cameras that are activated when the stop signs are deployed. Photographic evidence of infringements is captured and appropriate action is taken against the offending driver.

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Comments
Posted by sussamb on Thu Nov 13, 2014 12:10 pm Reply with quote

Not sure why a 'Student Guardian' system is needed. I lived in the US for 2 years and the one thing that seemed to be obeyed was the 'no passing school buses when lights were flashing' law Confused

Where there's a will ... there's a way.

  
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