Seagrave, with big backlog of orders, eyes contract with U.S. military

Leader Reporter

CLINTONVILLE — Vendors and dealer representatives headed to Seagrave Fire Appartus earlier this month for the company’s annual national sales meeting.

The event is usually near a larger city like Chicago, but the new management team which took over in November said they wanted to show the company’s strength and discuss plans on their home turf.

A fewdays before the event, the management team — chief operating officer Nathan Nick, vice president Matt McMorran and chief financial officer Mary Jo Wenzel — sat down with the Leader for an overview.

Earlier in the year, Seagrave secured a 15-month contract extension with the union, which has been key because fire truck orders are backlogged through 2008 and into 2009, Nick said.

Seagrave is also working on securing a contract to supply military chassis for MRAP (mine resistant ambush protected) vehicles. The military is currently testing the vehicle.

A mutual associate recommended Seagrave to the company supplying the finished unit to the government. Seagrave designed and built the MRAP chassis and sent it to the other company which puts on the body. The product has performed well so far in testing.

“From a duty cycle standpoint, they have held up and exceeded their expectations,” Nick said.

If Seagrave gets the contract, production would be done in the old plant. It’s been over 20 years since Seagrave had a military contract.

The company also builds a commercial snow removal vehicle used at airports called a SnoDozer.

“We just bid and are anticipating an order of 11 units for CalTrans out in California,” Nick said.

The company produced its first SnoDozer in 2004. Further diversification of product line is part of the strategy.

“That was part of our reason for looking at the military vehicles. We’re good at building chassis and it does fit into our business line so we so have a backup when business is slow,” Wenzel said.

McMorran said orders have averaged among all fire truck builders around 53 nationwide a year for the past five to 10 years.

“It’s a zero-sum game. If we’re gaining, which we have this year, someone else is losing, so it’s important that we diversify because we do have the background,” McMorran said

Seagrave, however, will continue its focus on the fire trucks, its core business.

McMorran noted the turmoil among fire truck manufacturers, which he said affects their backlog because dealers are hesitant to order from competitors on shaky ground. The backlog Seagrave has gives him confidence.

“I don’t know that we have ever had a backlog this full this early in the year, so that’s a very good thing,” said McMorran.

More on this story in Tuesday's Leader. Watch for other Annual Report stories all this week in the Shawano Leader.

Seagrave, with big backlog of orders, eyes contract with U.S. military

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