Refuse Truck Body Manufacturing in North America
Transcription
Refuse Truck Body Manufacturing in North America
Refuse Truck Body Manufacturing in North America Sample Pages: Proprietary information has been removed SpecialtyTransportation.net 1317 Oakdale Road, Suite 1110 Modesto, California 95355 USA Tel: 209/521-0155 Fax: 209/254-7254 E-mail: [email protected] www.specialtytransportation.net © SpecialtyTransportation.net, USA 2014 All rights reserved. This report is for the confidential use of the subscriber. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior consent of the copyright owner. The information for STN’s reports is derived from a wide variety of information sources that include public domain information and ‘journalistic type’ interviewing of management. Market research is a highly inexact science and all endeavors to research, analyze and synthesize this type of information gathering into a published report form, are on a best efforts basis. The Publisher cannot accept any responsibility for any omissions, errors and inaccuracies, or for any consequences arising therefrom. By purchasing this report, you have agreed to the terms and conditions published on our website at www.specialtytransportation.net. SpecialtyTransportation.net 1317 Oakdale Road, Suite 1110 Modesto, California 95355 USA Tel: 209/521-0155 Fax: 209/254-7254 E-mail: [email protected] www.specialtytransportation.net Table of Contents TABLE OF CONTENTS A. Preface.............................................................................................................................. 1 B. Scope & Methodology ....................................................................................................... 2 C. Product Definitions ........................................................................................................... 4 C.1 Front Loader Refuse Trucks ............................................................................................................... 4 C.2 Automated Side Loader Refuse Trucks.............................................................................................. 4 C.3 Manual/Semi-Automated Side Loader Trucks .................................................................................. 5 C.4 Rear Loader Refuse Trucks ................................................................................................................ 5 C.5 Recycling Trucks ................................................................................................................................ 5 C.6 Other Waste Collection Vehicles ....................................................................................................... 6 D. Industry Overview ............................................................................................................. 7 D.1 Manufacturing Practices, Product & Technology .............................................................................. 7 D.2 Product Innovation ............................................................................................................................ 9 D.3 Alternative Fuel ............................................................................................................................... 12 D.4 Industry Structure............................................................................................................................ 15 D.5 M&A Activity, Plant Expansion, Consolidation & Realignment ....................................................... 20 D.6 Profitability Analysis ........................................................................................................................ 23 D.6.1 Dover Corp.: Heil Environmental ........................................................................................... 27 D.6.2 Oshkosh Corp.: McNeilus Refuse ........................................................................................... 28 E. Market Analysis .............................................................................................................. 29 E.1 Channels .......................................................................................................................................... 29 E.2 Market Size ...................................................................................................................................... 31 E.3 Market Shares ................................................................................................................................. 34 E.3.1 Market Share by Product Type .............................................................................................. 35 E.3.1.1 Front Loaders ............................................................................................................ 35 E.3.1.2 Automated Side Loaders .......................................................................................... 37 E.3.1.3 Manual/Semi-Automated Side Loader ..................................................................... 39 E.3.1.4 Rear Loaders ............................................................................................................. 40 E.3.1.5 Recycling Trucks........................................................................................................ 42 F. Analysis by Geographic Region ........................................................................................ 44 F.1 Region Classification ........................................................................................................................ 44 F.2 Production Estimates by Region ...................................................................................................... 45 Table of Contents G. Market Outlook............................................................................................................... 46 G.1 Demand Drivers ............................................................................................................................... 46 G.2 Projected Market Size ..................................................................................................................... 46 H. Manufacturer Data .......................................................................................................... 48 I. Manufacturer Profiles ..................................................................................................... 50 Amrep, Inc. ............................................................................................................................................. 51 Bridgeport Manufacturing, Inc............................................................................................................... 52 DaDee Mfg. ............................................................................................................................................ 53 Edge Manufacturing, Inc. ....................................................................................................................... 53 E-Z Pack Manufacturing LLC ................................................................................................................... 54 Fanotech Enviro Inc................................................................................................................................ 56 G&H Manufacturing Ltd. ........................................................................................................................ 57 GCI Environnement Inc. ......................................................................................................................... 58 GSP Marketing, Inc. ................................................................................................................................ 59 Haul-All Equipment Ltd. ......................................................................................................................... 60 Heil Environmental................................................................................................................................. 61 Hol-Mac Corp./Pac-Mac ......................................................................................................................... 65 Kann Manufacturing Corporation .......................................................................................................... 66 Labrie Enviroquip Group - Labrie Environmental .................................................................................. 68 Loadmaster Corp. ................................................................................................................................... 71 Lodal Inc. ................................................................................................................................................ 72 McNeilus ................................................................................................................................................ 73 Pak-Mor Ltd............................................................................................................................................ 76 Scranton Manufacturing Co., Inc./New Way ......................................................................................... 77 Shu-Pak Equipment, Inc. ........................................................................................................................ 80 Universal Handling Equipment Co., Ltd. ................................................................................................ 81 Walinga Inc............................................................................................................................................. 82 Wayne Engineering ................................................................................................................................ 83 Table of Contents INDEX OF CHARTS AND TABLES Chart D.1: Refuse Truck Manufacturers: All – Ranged by Units Manufactured ......................................... 16 Table D.1: Refuse Truck Manufacturers: Top Ten – Product Mix ............................................................... 17 Chart D.2: Refuse Trucks: All – Share by Product Category: 2006 .............................................................. 18 Chart D.3: Refuse Truck:s All – Share by Product Category: 2013 .............................................................. 18 Table D.2: Refuse Trucks: All – Share by Product Category in Units........................................................... 19 Table D.3: Refuse Trucks: All – Share by Product Category in Dollars ........................................................ 19 Table D.4: Financial Data & Analysis ........................................................................................................... 25 Chart D.4: Profitability Analysis: Company: Dover Corp. ............................................................................ 27 Chart D.5: Profitability Analysis: Company: Oshkosh Corp. ........................................................................ 28 Table E.1: Estimated Unit Production & Dollar Sales by Product Type ...................................................... 32 Chart E.1: Refuse Trucks: All – Market Size: 2006 – 2013........................................................................... 32 Chart E.2: Refuse Trucks: All – Product Shares: 2006 – 2013 ..................................................................... 33 Chart E.3: Refuse Trucks: All – Market Share: Units ................................................................................... 34 Chart E.4: Refuse Trucks: All – Market Share: Dollars ................................................................................ 34 Chart E.5: Front Loaders – Market Share: Units ......................................................................................... 36 Chart E.6: Front Loaders – Market Share: Dollars ...................................................................................... 36 Chart E.7: Automated Side Loaders – Market Share: Units ........................................................................ 38 Chart E.8: Automated Side Loaders – Market Share: Dollars ..................................................................... 38 Chart E.9: Manual Side Loaders – Market Share: Units .............................................................................. 39 Chart E.10: Manual Side Loaders – Market Share: Dollars ........................................................................... 39 Chart E.11: Rear Loaders – Market Share: Units .......................................................................................... 41 Chart E.12: Rear Loaders – Market Share: Dollars ........................................................................................ 41 Chart E.13: Recycling Trucks – Market Share: Units ..................................................................................... 43 Chart E.14: Recycling Trucks – Market Share: Dollars .................................................................................. 43 Chart F.1: Census Regions: USA .................................................................................................................. 44 Chart F.2: Refuse Trucks: All – Unit Estimates by Geographic Region ........................................................ 45 Chart G.1: Refuse Trucks: All – Market Outlook: 2014 – 2018 ................................................................... 47 Table H.1: Manufacturer Data .................................................................................................................... 49 Preface A. PREFACE Who is SpecialtyTransportation .net (STN)? STN is a boutique consultancy and business publications firm in the United States that specializes in providing proprietary business analysis and databases to the medium/heavy vehicular, body, engine, equipment, trailer and component manufacturing industries worldwide. Formerly known as SpecialtyVehicles.net (SVN), the company has expanded its capabilities to include a wider range of transportation-related topics. STN addresses the specific business information needs of executives in strategic, marketing, acquisition/merger and related managerial positions in the above industries, through the development of customized publications and consultation on a project-specific basis. STN’s forté and knowledge in the medium/heavy vehicular and transportation industry combines with excellent functional expertise in Finance, Marketing, Market Research, Strategy, M & A and Business Development. STN’s further strength is in its people, located globally in various parts of the world, including India, UK, Brazil and Eastern Africa. All staff have outstanding academic credentials and operating/managerial experience of many years, in various areas of the automotive and vehicular industries. For a modest investment in STN's publications and custom research services, our clients have achieved profits and derived strategic direction with a payback of many times the cost. For a brief profile of STN and of personal capabilities please visit http://www.specialtytransportation.net. FOCUS-RFS14 Sample Pages - 1 Scope & Methodology B. SCOPE & METHODOLOGY Data and analysis on the refuse truck body manufacturing industry in North America. This report examines the business of refuse and recycling truck body manufacture in North America. The study is a one-time picture of manufacturers, with the key objective of identifying “who is who” in the business, with their estimated production/sales in units and at market values. STN has presented estimates of production numbers and market shares, an overview of the broad competitive picture—including standings of key identified manufacturers—and the demand outlook for the industry. Production estimates of only new truck bodies are presented. Certain manufacturers remanufacture (refurbish) refuse truck bodies; these numbers have been excluded from market size estimates. Estimates of dollar revenues have been sourced from various paid databases and from interactions with company personnel. In the case of companies where no information is available in the public domain on either employee number or revenue, STN has estimated their revenue based on a combination of sales growth and median pricing and an approximation of what the unit sales ought to be, based on the product range, the average prices, peer group comparisons, etc. Size estimates refer to manufacturers’ production based on their factory production-cum-sales indications found through interviews and public domain sources. Production share is not synonymous with “market share.” The estimates provided by STN adjust company sales data available in the public domain to relate to, and reflect sales only for, the specific product(s) under discussion. The basic methodology for calculating size is based on an assumption of sales, and from this, unit volume numbers are derived based on a best “guesstimate” of the median price by manufacturer. Median prices are derived through an averaging process of a significant sized sample and then adjusting the prices based on product features and capabilities. In the case of public companies, relevant data on sales, production and prices is sourced from annual reports. A company’s sales from public domain sources reflect total sales, not sales of the product type under discussion. All sales are in millions of dollars, unless stated otherwise. It is possible that sales may sometimes be “out of sync” with unit numbers, especially since a price-to-unit averaging is attempted. For companies that publish product-wise break-up of revenue, the data is more accurate. FOCUS-RFS14 Sample Pages - 2 Scope & Methodology Likewise, total employees and plant square footage are for the company as a whole, unless specifically noted otherwise. Other products, in addition to the subject product, are most often manufactured in the same plant. Total employee numbers are not adjusted to conform to the specific product type, unless available. Results for manufacturers operational in 2013 but subsequently closed have been included. Most manufacturers derive revenue from the sale of only the body, with the chassis being either customer-supplied or under a pool agreement with the chassis supplier/dealer. In cases where the unit is built “ground-up” and the full price of the body accrues to the manufacturer, average prices used for calculation of units produced have been modified accordingly. Product sales have been estimated by taking into account historical product mix percentages adjusted for current market environment. There may be variations in the extent of detail presented by product category owing to differences in the complexity of the product and amount of information available by product segment. Whenever adjustments are made, they are derived from a combination of average pricing, ratios and quite simply, by a “sense and feel” for what the sales and employee estimations ought to be on the basis of product mix, resulting average pricing, comparison with other “like” companies, etc. Product mix details, product configurations, models offered and specifications are correct at the time of going to print, and may change or have changed subsequently. Method-wise, the report is the product of both primary and secondary research tools, ranging from management interviews to close perusals of company reports, literature and deep internet mining of news. Some financial data include the effect of rounding, and table and chart totals may vary from the sum of individual items in the chart due to rounding of individual items. Despite the effort made to ensure a thorough coverage of all industry players, a study of such nature cannot be devoid of the generally accepted 2% to 5% standard reporting error. Keeping in view the above, in the event of any plausible changes to the report, arising out of corrections, cross-verifications, or any other changes in terms of content addition or deletion, STN will respond accordingly. However, STN is in no way is responsible and accountable for any omissions or shortcomings in the present research study, and for any related consequences arising there from. FOCUS-RFS14 Sample Pages - 3 Product Definitions C. PRODUCT DEFINITIONS A refuse or waste collection vehicle is designed for collection and transportation of residential, commercial and industrial waste, either to a landfill or to a waste treatment or recycling facility. While all refuse collection vehicles essentially perform the same function, the main differences between product types lie in the side of the truck from which the cart-loading operation is performed and the degree of automation of the waste collection operation. C.1 Front Loader Refuse Trucks Front loaders usually service commercial and industrial sites. Front loader refuse trucks feature automated forks on the front of the vehicle. When the truck reaches a waste collection point, the driver uses levers or a joystick to align the fork with the sleeves of the waste container, and then lifts the container over the truck…These trucks are best suited for commercial collection of containers and dumpsters… C.2 Automated Side Loader Refuse Trucks Automated side loaders Automated side loaders feature automated arms at the side of the refuse collection vehicle, which pick up the waste container and empty its contents improve efficiency in into the truck’s hopper…. waste collection. C.3 Manual/Semi-Automated Side Loader Trucks Manual/semi-automated side loaders load waste from the side of the truck. These units feature a drop frame that allows collectors to remain curbside and empty trash containers and load garbage bags left on the curb into the loader… C.4 Rear Loader Refuse Trucks Rear loaders remain the dominant type of refuse truck bodies. Rear loader refuse trucks are the oldest and most commonly used type of refuse truck for municipal solid waste collection. These feature an opening at the rear of the truck into which the operator empties the contents of the bin… C.5 Recycling Trucks Recycling trucks feature separate compartments for materials such as glass, plastic, paper and cans. Recycling trucks are refuse trucks designed for collecting waste intended for recycling plants. A key aspect of recycling is segregation of waste through containerization, wherein specific types of solid waste are placed in specific containers at the curbside… C.6 Other Waste Collection Vehicles In addition to the types of refuse trucks discussed in this report, a few other categories of trucks, such as grapple trucks, roll-off compactors and pneumatic waste collection vehicles, are used in waste collection. These are trucks used for collection of waste that cannot be “containerized”. FOCUS-RFS14 Sample Pages - 4 Industry Overview D. INDUSTRY OVERVIEW D.1 Manufacturing Practices, Product & Technology The chassis for a refuse truck needs to be designed with special heavy duty features not generally found on other heavy-duty trucks. The demands placed on refuse trucks are severe—frequent starts and stops, heavy loads, short runs, narrow streets, heavy power requirements, urban traffic and the rigor of driving through landfills. Autocar is a leading player in the Class 8 LCF (low cab forward) refuse truck chassis powered by natural gas. Autocar LLC offers refuse truck chassis under the ACX Xpeditor brand. The ACX Xpeditor is available in both diesel and CNG. The company sold 1,000 natural gas-powered Xpeditors in 2010. Autocar also offers the E3, a hybrid truck jointly developed by Autocar and Parker Hannifin. The E3 stores energy from braking to supplement the power of the diesel engine. The Autocar Xpeditor E3 has been available in a CNG version since mid-2011… Refuse truck body manufacturers mount the body on chassis sourced from a third-party chassis manufacturer. Some larger manufacturers maintain a stock of chassis at their factory, and therefore are in a position to offer a ready truck on short notice by matching the desired body type to the chassis options in stock… D.2 Product Innovation The driver of change in refuse truck design has been the introduction of increasingly stringent emission norms. Industry sources indicate that some waste management companies prefer front loaders with the Curotto-Can to automated side loaders… The extra weight of emission control equipment has negatively affected payload, and chassis layouts have had to be changed to accommodate the extra emission control equipment… Below is a partial listing of refuse truck bodies that have had innovative features designed to meet some or all of the above-mentioned objectives… D.3 Alternative Fuel CNG-powered trucks mostly replacing ageing trucks retired from fleets. Refuse truck body manufacturers on their part are simplifying the process of buying a CNG refuse truck. Alternative fuel propulsion technology is generating considerable interest in the refuse truck industry. The push for natural gas and other alternative fuelpowered trucks is coming from all stakeholders… The share of CNG-powered trucks in new orders has been on the rise in the last few years, and most manufacturers are working to improve their product offering in this category… Trends toward factory installation and fuelling are enabling buyers to purchase CNG ready-to-go refuse trucks… FOCUS-RFS14 Sample Pages - 5 Industry Overview D.4 Industry Structure Since waste haulers usually have more than one type of refuse truck in their fleet, the ability of a manufacturer to offer a complete package to a client is a competitive strength. STN estimates indicate the manufacture of X,XXX refuse and recycling trucks in 2013. SVN has identified twenty-three manufacturers of refuse truck and recycling bodies in North America… A nationwide distribution network is the strength of industry heavyweights… Six of the twenty-three manufacturers in this industry are located in Canada… Company A accounted for 35% of total units manufactured in 2013. The top two accounted for more than half the total units manufactured. Fourteen manufacturers turned out less than two hundred units per year. Of this fourteen, six manufacture less than fifty units annually. Smaller manufacturers have survived, some through concentrated regional focus and others through strong product customization. Chart D.1 below depicts the share of manufacturers ranged by number of units produced. Chart D.1 Refuse Truck Manufacturers: All Ranged by Units Manufactured Chart D.1: Refuse Trucks: Manufacturers: All - Ranged by Units Manufactured >3,000 4.3% <=100 39.1% 1,001 - 3,000 4.3% 501 - 1,000 8.7% 101 - 300 26.1% 301 - 500 17.4% FOCUS-RFS14 Sample Pages - 6 Industry Overview Increasing popularity of automated side loaders. The structure of the refuse truck body industry, as defined by the share of specific types of loaders, is undergoing a gradual change. While the rear loader has been and remains the most common type of loader in use, the automated side loader and front loaders with automated cans, despite their higher price, are witnessing increasing adoption for transport of residential waste… Waste collection agencies prefer split body units that allow all waste to be collected in a single pass and as a result, recycling trucks are increasingly being replaced by split body refuse trucks Charts D.2 and D.3 below present the share of each type of loader in the total refuse truck industry in 2006 and 2013. Chart D.2 Refuse Trucks: All Share by Product Category: 2006 Chart D.3 Refuse Trucks: All Share by Product Category: 2013 Chart D.2: Refuse Truck: All - Share by Product Category: 2006 Chart D.3: Refuse Truck: All - Share by Product Category: 2013 FOCUS-RFS14 Sample Pages - 7 Industry Overview Tables D.2 and D.3 present the number of units manufactured and dollar value of production for the top ten manufacturers by product type. Table D.2 Refuse Trucks: All Share by Product Category in Units Table D.2: Refuse Truck: All - Share by Product Category in Units Manufacturer 1 2 3 4 5 6 7 8 9 10 Front Loaders Auto Side Loaders Manual Side Loaders Rear Loaders Recycling Total Company A Company B Company C Company D Company E Company F Company G Company H Company I Company J Others Total Table D.3 Refuse Trucks: All Share by Product Category in Dollars Table D.3: Refuse Truck: All - Share by Product Category in Dollars Manufacturer 1 2 3 4 5 6 7 8 9 10 Front Loaders Auto Side Loaders Manual Side Loaders Rear Loaders Recycling Total Company A Company B Company C Company D Company E Company F Company G Company H Company I Company J Others Total FOCUS-RFS14 Sample Pages - 8 Industry Overview D.5 M&A Activity, Plant Expansion, Consolidation & Realignment Plant expansion announced by New Way New Way announced plans to expand its Scranton, Iowa, facility in October 2013 to meet the increasing demand for automated side loaders… Heil Environmental sold its Europe refuse truck manufacturing facility in 2013. Heil had a facility in Hillend, Scotland—Heil Europe—which manufactured a complete line of refuse collection vehicles, universal lifts, and replacement parts for the European market. Heil Europe was sold to Farid European Group, an Italian refuse collection manufacturer…in May 2013… Curotto-Can acquired by Dover… Curotto-Can, located in Sonoma, California, manufactures automated carry cans that convert a front loader into an automated front loader… E-Z Pack Manufacturing … sold to Overall Capital and Pine Street Growth Partners in April 2014. Navistar International acquired the assets of E-Z Pack Mfg. in May 2012. ...However in April 2014 the E-Z Pack Manufacturing business was sold to investment firms Overall Capital (Boston, Massachusetts) and Pine Street Growth Partners (Denver, Colorado). Overall and Pine Street operates the business as E-Z Pack Refuse Hauling Solutions, LLC. Pine Street is a principal owner of one of E-Z Pack's largest dealers, Waste Equipment and Parts LLC… … Some manufacturers struggled through the downturn and reports of bankruptcy filings and sale of assets in the last few years including… D.6 Profitability Analysis Most manufacturers are privately held, small manufacturers. STN estimates indicate average revenue per manufacturer from sale of refuse and recycling truck bodies at $XXX million, with revenues ranging from $XXX million for the market leader to $XXX million for a small rear loader manufacturer… #1 and #2, though, are divisions of large, listed companies. A majority of the identified refuse and recycling truck body manufacturers are small, privately owned small to medium-sized organizations that range from entrepreneur ownership to relatively small business units of larger corporations… Sections D.6.1 and D.6.2 present the revenue and profitability trends for the two publicly listed companies at the segment level over the three-year period 2011 to 2013… FOCUS-RFS14 Sample Pages - 9 Market Analysis E. MARKET ANALYSIS E.1 Channels Sales to government bodies and municipalities significant. Marketing methodologies and channel strategies are impacted primarily by the following factors— - Diversity of the customer base. - Complexity of the product. - Location and size of the manufacturer… Below are details of dominant channel strategies, along with brief details of marketing and distribution networks used by leading manufacturers… E.2 Market Size STN estimates the manufacture of XXX refuse truck bodies with a market value of $XXX million for all the five product types examined here. While the refuse truck industry did not experience the extreme shrinkage in demand witnessed by other truck body segments during the recent economic downturn, demand in this segment continues to be impacted by weak municipal spending… Certain manufacturers reported better order backlog positions in 2011 because of a bonus depreciation tax deduction that expired at the end of 2011…STN research indicates that the refuse truck body industry witnessed an uptick in sales in 2012, buoyed by the orders booked during the last quarter of 2011. Table E.1 Estimated Unit Production & Dollar Sales by Product Type Table E.1: Estimated Unit Production & Dollar Sales by Product Type Product Type Units # Prod’n % Share Est. Sales ($ Mill) Sales % Share Front Loader Automated Side Loader Manual Side Loader Rear Loader Recycling Trucks Total Front loader trucks and automated side loaders are the more expensive product types and therefore account for a larger share of the industry when measured in terms of dollar revenues, as compared to units produced. Charts E.1 and E.2 present the market size of the industry by product type over the period 2006 to 2013, and the change in the share of each product type in total production. FOCUS-RFS14 Sample Pages - 10 Market Analysis E.3 Market Shares Company A is the leading player in the segment, accounting for a little over a third of all units manufactured… Company B is the second largest manufacturer of refuse truck bodies in North America with a XX% share… Company C is the third largest player in this industry… On an aggregate basis, difference in market share in units manufactured viz-aviz dollar value of production is because of differences in product mix… Charts E.3 and E.4 present market share in units manufactured and dollar terms for the industry as a whole. Chart E.3 Refuse Trucks: All Market Share: Units Chart E.4 Refuse Trucks: All Market Share: Dollars Chart E.3: Refuse Trucks: All - Market Share: Units Chart E.4: Refuse Trucks: All - Market Share: Dollars FOCUS-RFS14 Sample Pages - 11 Market Analysis: Market Share by Product Type E.3.1 Market Share by Product Type E.3.1.1 Front Loaders Fifteen of the twentythree identified players manufacture front loading refuse trucks. An estimated XXX new refuse truck units with front loading mechanisms were manufactured in 2013, with a sales value of about $XXX million. Front loaders are used predominantly for commercial garbage collection, as these trash containers are usually much larger than residential bins. These units are also used for waste collection from large apartment blocks because of the shared nature of garbage containers… Front loaders have capacities ranging from 23 cu. yd. to 44 cu. yd., with most units being in the 34 cu. yd. to 43 cu. yd. capacity range. Front loader units can have compartments that are proportioned 50/50, 60/40 or 70/30 to allow for simultaneous collection of different streams of waste. Sales value for this product category has been estimated at a median body value of approximately $XXX per truck. The XXX is a popular chassis for mounting front loading bodies. Models offered by different manufacturers vary primarily by size of hopper and cycle time. Details of a few models available in the market are provided here… Charts E.5 and E.6…show the market share of players in the front loader refuse truck segment in units and dollar terms. With products fairly standardized within a product category, there is not much variation in prices of front loaders from different manufacturers. Prices vary with body capacities and add-on options such as split body, etc. E.3.1.2 Automated Side Loaders One-man operation is driving increasing adoption of automated side loaders. The arms and lifting mechanisms used with automated side loaders are designed for standardized containers’ weight and size, and therefore standardization of curbside containers is a prerequisite for waste collection using such equipment. Automated side loader refuse trucks are growing in popularity. These are used primarily in residential refuse collection. A single driver can both drive the truck and collect the garbage… STN estimates indicate the manufacture of XXX automated side loader refuse trucks in North America in 2013. This type of refuse truck has brought about significant efficiencies in waste collection. Typically, one such vehicle is able to service 1,000+ homes in a day, to as many as 1,500 homes. Sales value of this product type has been estimated at a median price of approximately $XXX per body. STN estimates indicate a total dollar value of $XXX million for this product category… A partial listing of automated side loader models currently available, with brief specifications, is presented below… Charts E.7 and E.8 present the market share positions in units manufactured and dollar terms. FOCUS-RFS14 Sample Pages - 12 Market Analysis: Market Share by Product Type E.3.1.3 Manual/Semi-Automated Side Loaders Manual side loader units offer the flexibility of automated garbage collection along with features of a rear loader. Manual/semi-automated side loaders are used predominantly for residential curbside garbage collection. Twelve manufacturers participate in this segment. This category accounts for a relatively small share of the refuse truck industry. STN estimates indicate the manufacture of XXX manual side loader refuse trucks in North America in 2013, at a sales value of approximately $XXX million, with sales value estimated at a median price of approximately $XXX per body. Charts E.9 and E.10 present the market share positions in units manufactured and dollar terms. E.3.1.4 Rear Loaders The ubiquitous rear loader is the staple of the refuse truck industry. Rear loaders are used for residential trash collection. These bodies require at least one operator, if not two, in addition to the driver to pick up trash bins and load them into the truck. The contents are compacted with a ramming mechanism… Rear loaders have capacities ranging from 6 to 32 cu. yd. The smaller units are targeted at cities or municipalities with narrow streets or areas such as parks and beaches not accessible to the regular-sized loader… Details of a few rear loading refuse trucks available in the North American market are given below… Charts E.11 and E.12 present the market share positions in units manufactured and dollar terms. E.3.1.5 Recycling Trucks The recycling truck is gradually being replaced by split body loaders—front, side and rear—units, which can collect multiple streams in one pass. Recycling trucks are used primarily in residential curbside recyclable garbage collection. These trucks have distinct compartments to separate different types of recyclables such as glass, aluminum, paper and plastics. As mentioned previously, features of a recycling unit have begun to be incorporated into other refuse trucks… STN estimates indicate annual production of approximately XXX such units in 2013, with a market value of $XXX million, estimated at a median price of approximately $XXX per body. STN has identified five players in this product segment… Charts E.13 and E.14 present market share in units and dollar terms. FOCUS-RFS14 Sample Pages - 13 Analysis by Geographic Region F. ANALYSIS BY GEOGRAPHIC REGION F.1 Region Classification STN has presented analysis by geographic region based on the location of the manufacturing facility. STN has used the region definitions designated by the United States Census Bureau, which divides the country into four regions: Northeast, Midwest, South and West, per Chart F.1. Canadian manufacture of refuse truck bodies has been classified separately. Chart F.1 Census Regions: USA Chart F.1: Census Regions: USA F.2 Production Estimates by Region The Midwest region of the United States accounts for more than half of all refuse trucks manufactured in North America. Production share by geographic region is skewed heavily in favor of the region where Company A is based. Six manufacturers are located in the West North Central and the East North Central divisions in the Midwest region… Six manufacturers are located in Canada… Chart F.2 presents refuse truck body manufacture ranged by region. Growing export market, currently limited to leading manufacturers. FOCUS-RFS14 Sample Pages - 14 Market Outlook G. MARKET OUTLOOK G.1 Demand Drivers It is expected that a significant share of demand will be for CNG-powered refuse trucks as fleets look at replacing older dieselpowered trucks with the cleaner burning CNG. Municipalities and contractors constitute the customer segment for refuse bodies. Sales to municipalities are based on lowest bids while sales to private contractors are mainly direct and typically have higher margins. STN analysis indicates that XX% of refuse truck bodies are purchased by private contractors and XX% by municipalities. Demand for refuse trucks from municipal customers continues to be weak post-2008… The CNG market for refuse trucks is maturing, with growing investment in infrastructure…, reduction in the price differential between CNG and dieselpowered trucks, and growing ease in the purchasing process… G.2 Projected Market Size STN estimates indicate that the 2014 numbers will be marginally above 2013… In view of increasing use of split loader bodies, it is expected that the share of the pure recycling truck will continue to decline… Chart G.1 presents STN estimates of the total size of the industry in the period 2014 to 2018 by product category. FOCUS-RFS14 Sample Pages - 15 H. MANUFACTURER DATA FOCUS-RFS14 Sample Pages - 16 Manufacturer Data Table H.1 Manufacturer Data Table H.1: Manufacturer Data Manufacturer Location City 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Amrep Inc. Ontario ST CA Est. Company Total Employ 140 Est. Product Sales ($ Mil) 37.13 Total Company Sales ($ Mil) 48.00 Product Sales as % of Total Products 77.4% FL, ASL, MSL Wayne Engineering Corp. FL – Front Loaders; ASL – Automated Side Loaders; MSL – Manual Side Loaders; RL – Rear Loaders; RECY – Recycling Units. FOCUS-RFS14 Sample Pages - 17 Manufacturer Profiles I. MANUFACTURER PROFILES FOCUS-RFS14 Sample Pages - 18 Amrep Inc. Amrep, Inc. 1555 S. Cucamonga Avenue Ontario, California 91761 USA www.amrepinc.com Phone: Fax: President Corporate Secretary Manager, Sales, Fleet 909-923-0430 909-923-2485 Jose Ghibaudo Vivian Ford Scott Mattson smattson @amrepinc.com Rev ($ Mill) Employees Products Manufactured 48.00 140 Automated and manual side and front loading refuse truck bodies Profile Incorporated in 1976, Amrep is a family-owned company. The company manufactures refuse truck bodies, predominantly for the West Coast market. Other products include roll-offs, trailers and hydraulic cylinders. Portfolio of products manufactured is as follows: - Automated side loaders o HX 450ASL – 30 cu. yd. to 36 cu. yd. body, can dump and return the container without retracting the lift arm as the container travels up the arm in a vertical fashion until it reaches the hopper area; there is significant reduction in spillage onto the street owing to this feature. 500 lbs. lift capacity and 10-second dump cycle. o Octagonal – 30 cu. yd. to 36 cu. yd. body. - Manual drop frame side loaders – designed for residential applications, available in 25 cu. yd. to 36 cu. yd. sizes, can be mounted on two or three axle vehicles, hoist ejection. Optional features include semi-automated dumpers, enclosed hopper, deeper hopper sides with large packer blade and cylinders for recyclable material. - Front loaders o HX 450FL – 8,000 lbs. loader arms with 16-second dump cycle. o Octagonal – 38 cu. yd. to 40 cu. yd. body. Octagonal shape allows higher payload, better rear view visibility and greater strength. Other equipment manufactured includes roll-offs and pup and transfer trailers. Full line available in alternative fuel configurations. The company had manufactured 200 alternative fuel-powered vehicles as early as 2008. FOCUS-RFS14 Sample Pages - 19 Bridgeport Manufacturing, Inc. DaDee Manufacturing Bridgeport Manufacturing, Inc. 1310 Brown Road Breckenridge, Texas 76424 USA www.bridgeportmfg.com Phone: Fax: President, Owner Controller Manager, Sales 254-559-2533 Rev ($ Mill) 254-559-2731 Employees Tony Kouri Products Jill Jackson Manufactured Jerome Rendon [email protected] 20.55 70 Side and front loading refuse truck bodies Profile The company initially operated out of a rented facility in Bridgeport and moved into a new facility in Breckenridge, Texas , in 2011, doubling the manufacturing space and adding a four-stage paint booth. The company continues to retain its old facility in Bridgeport for supply of parts and service. Portfolio of products manufactured is as follows: - Side loaders o Ranger – automated side loader, 20 to 38 cu. yd. body capacities, 7.5-second cycle time from side of truck, tapered body to facilitate unloading, 96 inches arm reach. Optional equipment includes 144-inch extended arm reach, 1 to 3 camera systems and CNG tank installation. o The Ranger automated side loader is also available in a 50/50 split body configuration for simultaneous collection and transport of refuse and recyclables. o Trinity series – available in manual, semi-automated and fully automated options in capacities ranging from 25 cu. yd. to 37 cu. yd. - Front loaders – 34 cu. yd. to 45 cu. yd. capacities, 12 cu. yd. hopper capacity and 12-second arm cycle. DaDee Manufacturing 1930 W. Broadway Phoenix, Arizona 85041 USA www.dadeemfg.com Phone: Fax: President Manager 602-276-4390 602-276-5470 Paul Campbell [email protected] Donna Clayton Rev ($ Mill) Employees Products Manufactured 3.00 22 Side loading refuse truck bodies Profile Established in 2007, DaDee manufactures the Scorpion brand of automated side loader refuse truck bodies. These have a 27 cu. yd. capacity with a 3 cu. yd. self-cleaning hopper. These side loader units feature a unique slide-sweep style packer blade that is similar to that of a rear loader. The packer blade reaches into the hopper and pulls the garbage into the body. The blade also acts as a hopper cover between stops, resulting in reduced spillage of waste. The company also manufactures the Mantis brand of front loader truck bodies and has manufactured around five units to date. FOCUS-RFS14 Sample Pages - 20 E-Z Pack Manufacturing LLC E-Z Pack Manufacturing LLC 200 Ladish Road Cynthiana, Kentucky 41031 USA www.ezpacktrucks.com Phone: Fax: Vice President, Sales Inside Sales Manager 859-234-1100 859-234-0061 Jim Rogers jrogers @ezpacktrucks.com Karen Seevers kseevers @ezpacktrucks.com Rev ($ Mill) Employees Products Manufactured 29.00 97 Front, rear and automated side loading refuse truck bodies Profile E-Z Pack Manufacturing has been in the business of refuse truck body building for more than 60 years. The company also manufactures aftermarket parts for various manufacturers, including McNeilus, Heil, Leach and Wittke, in addition to parts for its own range of E-Z Pack refuse trucks. E-Z Pack Manufacturing was a wholly owned subsidiary of E-Z Pack Holdings, which in turn was a subsidiary of Republic Financial Corp., Aurora, Colorado, a privately held investment company. Republic Financial had purchased the refuse truck division—the E-Z Pack line of refuse trucks—from Clean Earth Kentucky, LLC in July 2006. In May 2012, the company announced that certain assets, including intellectual property of the company, were being acquired by Navistar, Inc. The acquisition was completed in February 2013. In September 2012, Navistar had introduced a new low cab-forward chassis—LoadStar—for the refuse truck industry. Constructed of stainless steel, the LoadStar had been designed to better withstand the demanding refuse truck environment and to offer a number of driver-friendly features. The intent was to mount E-Z Pack bodies on the Loadstar chassis to offer to customers as fully integrated cab/chassis/body units. However production of the LoadStar chassis was put on hold as Navistar dealt with issues related to its engine production program, and in April 2014, E-Z Pack was divested to investment firms Overall Capital (Boston, Massachusetts) and Pine Street Growth Partners (Denver, Colorado). Overall and Pine Street operates the business as E-Z Pack Refuse Hauling Solutions, LLC. Pine Street is a principal owner of one of E-Z Pack's largest dealers, Waste Equipment and Parts LLC. Production of refuse truck bodies remains at the 360,000 sq. ft. manufacturing facility in Cynthiana, Kentucky. In March 2012, E-Z filed for a patent through the U.S. Patent and Trademark Office for its Hercules front loader and automated side loader refuse truck body, uniquely equipped with a compressed natural gas integrated fuel system. The company designed the body with CNG tanks integrated within the body profile, allowing for up to 90 diesel gallon equivalents (DGE) of fuel. This integration also allows the best possible placement of weight, thereby maximizing legal payloads. This is the only CNG-powered front loader in the industry with fuel cells integrated into the body, protected inside the tailgate rather than on the roof or saddle-mounted on the chassis rails. FOCUS-RFS14 Sample Pages - 21 E-Z Pack Manufacturing LLC Portfolio of refuse truck equipment is as follows: - Front loaders o Hercules residential front loader – designed for one-man operation, available in body capacities of 30 cu. yd., 35 cu. yd., 37 cu. yd. and 40 cu. yd., 10-second container dump time. o Hercules commercial front loader – available in 35 cu. yd., 37 cu. yd., 40 cu. yd. and 44 cu. yd. capacities. o Hercules combination – residential/commercial combination – available in 35 cu. yd., 37 cu. yd., 40 cu. yd. and 44 cu. yd. capacities. - Rear loaders o Goliath G400 – 4 cu. yd. hopper. o Goliath G300 – available in 18 cu. yd., 20 cu. yd., 25 cu. yd. and 31 cu. yd. body sizes, 3 cu. yd. hopper. o Apollo A300 – available in 16 cu. yd., 18 cu. yd., 20 cu. yd. and 25 cu. yd. body sizes, 3 cu. yd. hopper. - Automated side loaders - Hercules ASL – introduced in June 2009 and developed on the company’s Hercules platform, the Hercules ASL incorporates the company’s patented fuel-saving hydraulic system and features 1,000 lbs. per cu. yd. compaction. 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