Shyft Group President and CEO Daryl Adams said Spartan RV Chassis’ motorhome business gained market share in the most recent quarter. Gains came despite headwinds from supply-chain shortages and inflation costs.
Adams said the company’s luxury motor coach chassis market share grew to 31% in the third quarter. Market share topped out at 37% in August, “reflecting the strength of our product offerings and brand among luxury motor coach customers,” he said.
The growth comes as Spartan RV Chassis and its parent company battle supply-chain challenges, particularly with semiconductor chips. Adams said the issues are “constantly on our mind,” with some days leadership believing the chips will be available, only to hear a few days later there is a short plant shutdown.’
“We think we got supply on some fiberglass … where we went to nine different suppliers trying to get the Aerocaps,” Adams said. “Then they will have some issue procuring supply and then it moves into the labor piece.”
Thus, Adams said, supply-chain issues remain about the same as they have all year, describing it as a constant battle.
“As we look into Q4, I think we are in pretty good shape,” he said. “In the beginning of 2022, things could change. But right now, it has been the same, and we see it continuing at least through the first half of 2022, for sure.”
Another issue Shyft Group cited in its third-quarter financial reporting is inflation. The company stated it saw inflation effects on commodities, labor and raw materials accelerate in the quarter.
“We will see incremental price benefits starting in October,” Chief Financial Officer Jon Douyard said, “and we expect to fully recover the inflation impact in the coming quarters.”
Across the business, Douyard said Shyft took on three or four price increases in 2021. He said the company felt price increase impacts in the third quarter and expects more in the fourth quarter.
“We will continue to be conscious of the environment and the markets,” he said. “We continue to execute and look for opportunities to lock material and pricing consistent with the strategy that we have talked about previously and really just focusing on execution of getting products in the hands of our customers.”
