Creating a captive channel supplier of fabricated aluminum cabs demonstrates a vertical integration strategy that insulates the manufacturer’s supply base
CHARLOTTE, Mich.—The specialty vehicle manufacturer Spartan Motors, Inc. , recently launched Detroit Truck Manufacturing™(DTM), a captive channel supplier of fabricated aluminum cabs for Spartan’s fire trucks, as well as its cab and chassis product that it supplies to more than 40 OEM fire truck manufacturers. Spartan Motors said in a press release that DTM will enable it to achieve greater flexibility through further insulating the organization from risk in its broader supply base, optimizing its cost structure and quality control efforts.
“I am very pleased to announce the launch of Detroit Truck Manufacturing. In addition to producing cabs designed for final stage manufacturing, this initiative further protects Spartan from potential supplier disruptions in our changing economic climate,” said Daryl Adams, president and chief executive officer, Spartan Motors, in a statement. “While we plan to further expand our supply base across the organization as part of our long-term strategic growth and financial initiatives, creating a captive channel cab manufacturer provides Spartan greater flexibility and an optimized cost structure to fuel additional, profitable growth.”
According to Spartan Motors, Detroit Truck Manufacturing represents an organic growth opportunity through its proximity to the Detroit area, strategic customers, highly skilled automotive talent pool, and improved quality of product validation. The initiative is expected to further Spartan’s vertical integration strategy for efficiencies and savings, along with reduced material costs and freight savings that will be leveraged across the enterprise.
The new facility, located on five acres in Madison Heights, Michigan, is further expected to improve quality and reduce lead times by employing world-class flexible manufacturing technologies. Spartan Motors said that as it continues to grow and expand by reinforcing its commitment to U.S. manufacturing, DTM also provides a pipeline to highly skilled talent with unique competencies in the areas of fabrication, welding, quality assurance, and manufacturing optimization.
Spartan Motors, Inc. (www.spartanmotors.com) is known for its specialty vehicle manufacturing and assembly for the commercial and retail vehicle industries, as well as for the emergency response and recreational vehicle markets. The company is organized into three core business segments, including Spartan Fleet Vehicles and Services, Spartan Emergency Response, and Spartan Specialty Vehicles.