The Shyft Group Stock

The Shyft Group, Inc. operates as a niche market leader in specialty vehicle manufacturing and assembly for the commercial vehicle (including last-mile delivery, specialty service and vocation-specific upfit segments) and recreational vehicle industries. The company's products include walk-in vans, truck bodies, and cargo van and pick-up truck upfits used in e-commerce/parcel delivery, upfit equipment used in the mobile retail and utility trades, as well as luxury Class A diesel motorhome custom chassis and contract manufacturing and assembly services. The company also supplies replacement parts and offer repair, maintenance, field service and refurbishment services for the vehicles that it manufactures. The company's operating activities are conducted through its wholly-owned operating subsidiary, The Shyft Group USA, Inc., with locations in Novi, Charlotte, Plymouth and Wixom, Michigan; Bristol, Indiana; Waterville, Maine; Landisville, Pennsylvania; Pompano Beach and West Palm Beach, Florida; Kansas City, Missouri; Carson and McClellan Park, California; Mesa, Arizona; Dallas and Weatherford, Texas; Lebanon; Tennessee; and Saltillo, Mexico.

The company's vehicles, parts and services are sold to commercial users, original equipment manufacturers (OEMs), dealers, individual end users, and municipalities and other governmental entities. The company's diversification across several sectors provides numerous opportunities. The company has an innovative team focused on building lasting relationships with its customers by designing and delivering market leading specialty vehicles, vehicle components and services. Additionally, the company's business structure provides agility to quickly respond to market needs, take advantage of strategic opportunities when they arise and correctly size and scale operations to ensure stability and growth.

Segments

The company operates through two segments: Fleet Vehicles and Services (FVS) and Specialty Vehicles (SV).

Fleet Vehicles and Services segment

This segment manufactures commercial vehicles used in the e-commerce/last mile/parcel delivery, beverage and grocery delivery, laundry and linen, mobile retail, and trades and construction industries. The company's commercial vehicles are marketed under the Utilimaster brand name, which serves a diverse customer base and sells aftermarket parts and accessories for walk-in vans and other delivery vehicles. The company also provides vocation-specific equipment upfit services, through its manufacturing operations. The company offers fleet vehicles in Gross Vehicle Weight Rating (GVWR) Class 1 through Class 7, the largest range of product offerings amongst its competitors.

Innovation

The company's Solution Experts employ a customer-centric approach by working with customers through a process of listening and learning, needs assessment, and design innovation through building and implementing solutions designed with its customers and their end customers in mind. Innovations implemented by the company's Solution Experts include efficiency improvements and cost saving solutions for the service segment, utility industry, food and beverage delivery, and mobile retail industry, such as safe loading equipment, keyless entry and cargo access systems, backup camera systems, and refrigeration solutions. The company's teams can deliver product customization ranging from out-of-the-box to 100% custom solutions, based on customer needs and business requirements.

Products

Walk-in Vans

Assembled on a de-contented or stripped truck chassis supplied with engine and drive train components, the company's walk-in vans are used across a variety of vocations for multiple delivery and mobile service options. The vehicles feature a durable and lightweight aluminum body with a highly modularized cargo area, featuring extensive driver ergonomics options and a low step-in height for easy entry and egress.

Truck Bodies

Utilimaster dry van truck bodies are the industry standard for heavy-duty commercial delivery and are installed on chassis from a variety of manufacturers, which are supplied with a finished cab. They feature a highly customizable cargo area for maximum versatility and are manufactured with anti-rust galvanized steel, Utiliplate, and aluminum component parts. Available with cargo lengths from 10 to 28 feet and interior heights ranging from 72 to 108 inches.

Cutaway

Utilimaster cutaway truck bodies are the industry standard for medium-duty commercial delivery and are installed on chassis from a variety of manufacturers that are supplied with a finished cab. The highly configurable design can be configured with a set-back walk-through bulkhead allowing access to the cargo area from the cab. Available with cargo lengths from 10 to 18 feet and interior heights ranging from 72 to 90 inches.

Velocity

A nimble, fuel efficient, and ergonomically designed walk-in van lineup built on commercial cargo van chassis across OEMs is designed to combine the cargo capacity of a traditional walk-in-van with the drivability of a smaller format vehicle. The Velocity lineup makes large product/package deliveries easy, with lower entry/egress height and 3-point grab rails at side and rear doors.

Specialty Upfit

The company installs specialty interior and exterior upfit equipment for walk-in vans, truck bodies, cargo vans, and light duty pick-up trucks for added safety, cargo handling efficiency, and vocational functionality.

Parts and Accessories

The company provides a full line of parts and accessories for its walk-in vans and truck bodies. The company is solution focused and design and integrate a full line of parts and accessories to meet customer needs.

Marketing

The company markets its commercial vehicles, including walk-in vans, cutaway vans, and truck bodies, under the Aeromaster, Velocity, Trademaster, and Utilivan product brand names. The company sells its fleet vehicles to leasing companies, national and fleet accounts (national accounts typically have 1,000+ vehicle fleets and fleet accounts typically have 100+ vehicle fleets), and through a network of independent truck dealers in the U.S. and Canada. The company also markets its truck bodies direct to retail customers in select markets. The company provides aftermarket support, including parts sales and field services, to all of its fleet vehicle customers through its Customer Service Department located in Bristol, Indiana.

Specialty Vehicles segment

Specialty Vehicles segment includes a portfolio of business that provides service bodies, RV chassis, vocational upfit and contract manufacturing products and services. The company manufactures and assembles truck bodies for a variety of trades and vocations. The company's specialty vehicle products are manufactured to customer specifications upon receipt of confirmed purchase orders. As a specialty chassis and vehicle manufacturer, the company holds a unique position for continued growth due to the high quality and performance of its products, its proactive engineering, manufacturing expertise and flexibility, and the scalability of its operations. The company's specialty vehicle products are generally sold through original equipment manufacturers in the case of chassis and vehicles and to dealers, distributors or directly to consumers for service bodies and aftermarket parts and accessories.

Innovation

At trade shows and motorhome rallies, the company engages with a diverse group of motorhome owners to understand their needs and ensure its motorhome and specialty chassis incorporate the latest technology and highest quality. The company's innovations include new lines of Magnum truck accessories, including a cross-body toolbox and ladder rack, as well as a new steel XP service body that is precision engineered to eliminate water, salt and chemical traps and features a proprietary high-endurance coating system for a glossy and durable finish to seal out weather and wear. The company strategically sells its aftermarket truck products to enthusiasts, dealerships and distributors. The company continues to expand its product portfolio and execute innovations in that segment.

Products

Service Bodies

The company manufactures and assembles truck bodies for a variety of trades and vocations. Those body configurations include utility bodies, stake bodies, contractor bodies, dump/landscape bodies and vocational dry freight bodies under the Royal Truck Body and DuraMag brand names.

Motorhome Chassis

The company customs manufacture diesel chassis for luxury Class A motorhome to the individual specifications of its motorhome OEM customers under the Spartan RV Chassis brand name. These specifications vary based on specific interior and exterior design specifications, gross vehicle weight, horsepower, and electrical needs of the motorhome bodies to be attached to the company's chassis. Its motorhome chassis feature diesel engines of 360 to 605 horsepower and are used in motorhomes ranging from 34 to 45 feet.

Contract Manufacturing

The company provides final assembly services for Isuzu N-gas and F-series chassis for the North American market under the Builtmore Contract Manufacturing brand name. These class 3 and class 5 chassis are utilized in a variety of final configurations for light duty freight hauling and industrial uses.

Specialty Upfit

The company designs and installs custom lighting and upfit solutions to meet the unique needs of certain fleet industries, including a range of specialty industries, such as law enforcement, municipalities, security companies, and providers of utility services. The company provides durable, reliable, and high-quality product installations for any vehicle requiring specialty exterior and interior accessory upfits.

Parts and Accessories

The company provides truck accessories under its Magnum brand and provide a full line of parts and accessories, as well as maintenance and repair services for its motorhome and specialty chassis.

Marketing

The company sells its service bodies through a commercial dealer network and through OEM pools, and it actively participates in a variety of regional and national trade shows that promote its products. The company sells its Class A diesel motorhome chassis to OEMs for use in the manufacturing of luxury motorhomes. The company actively participates in a variety of trade shows and motorhome rallies that promote its products and Red Diamond aftermarket solutions in addition to providing an opportunity to communicate with its end customers to showcase its latest innovations and identify needs and opportunities for continuous improvement of its chassis. The company also provides vocation-specific equipment upfit services, which are marketed and sold under the Strobes-R-Us brand. The company is expanding the marketing of Magnum accessories beyond work trucks to include outdoor enthusiasts and truck owners.

Research and Development

The company spent $25.2 million on research and development in 2023.

Product Warranties

The company provides limited warranties against assembly and construction defects. These warranties generally provide for the replacement or repair of defective parts or workmanship for specified periods, ranging from one year to twenty years, following the date of sale.

Patents, Trademarks and Licenses

The company has 23 United States patents, which include rights to the design and structure of chassis and certain peripheral equipment, and it has 23 United States, Canada, and Patent Cooperation Treaty pending patent applications. The existing patents will expire on various dates from 2025 through 2042 and utility patents are subject to payment of required maintenance fees. The company also owns or licenses 73 federal and international trademark and service mark registrations. The trademark and service mark registrations are generally renewable under applicable laws, subject to payment of required fees and the filing of affidavits of use. In addition, the company has 49 pending trademark applications. The company's products and services are identified by its trademarks and service marks.

Customer Base

The company serves customers ranging from municipalities to OEMs to commercial customers and vehicle dealers throughout its product lines. Sales to the company's top 10 customers in 2023 accounted for 54.3% of its sales. Sales to customers outside the United States for the year ended December 31, 2023, were 2.8% of sales. Substantially all of the company's long-lived assets are located in the United States.

History

The company was founded as a Michigan corporation in 1975. It was incorporated in 1975. The company was formerly known as Spartan Motors, Inc. and changed its name to The Shyft Group, Inc. in 2020.