MANUFACTURING TECHNOLOGY

Federal Signal Completes Acquisition of TowHaul Corporation

Federal Signal Corporation | October 04, 2022 | Read time : 01:13 min

Federal Signal News
Federal Signal Corporation (NYSE: FSS) (the "Company"), a leader in environmental and safety solutions, today announced that it has completed the acquisition of substantially all the assets and operations of TowHaul Corporation ("TowHaul"), a leading manufacturer of off-road towing and hauling equipment, for a purchase price of $46.1 million, subject to post-closing adjustments. The signing of the purchase agreement was previously announced on September 7, 2022.

"We are thrilled to complete the TowHaul acquisition, and strengthen our position as an industry-leading, diversified industrial manufacturer of specialized vehicles for maintenance and infrastructure markets, The acquisition creates a platform that can serve its global customer base with a broader range of world-class products and solutions and provides opportunity for long-term value creation through operational improvement and organic growth initiatives."

-Jennifer L. Sherman, President and Chief Executive Officer, Federal Signal.

The Company expects the acquisition to be accretive in 2023.

About Federal Signal:
Federal Signal Corporation (NYSE: FSS) builds and delivers equipment of unmatched quality that moves material, cleans infrastructure, and protects the communities where we work and live. Founded in 1901, Federal Signal is a leading global designer, manufacturer and supplier of products and total solutions that serve municipal, governmental, industrial and commercial customers. Headquartered in Oak Brook, Ill., with manufacturing facilities worldwide, the Company operates two groups: Environmental Solutions and Safety and Security Systems.

Spotlight

Aftermarket service is now an important driver of revenues and profitability for industrial equipment manufacturers. The shift from the traditional product-based to services-based business models requires organizations to develop innovative service programs and achieve service excellence. Intelligent operations enabled by rethinking business processes with advanced technology and analytics at their core and a feedback loop for continuous improvement can help companies navigate this change successfully. For companies that manufacture heavy industrial equipment, this shift represents a fundamental change in the business model, since equipment manufacturers must now have a clear view of how the product is going to perform in the field, have knowledge of usage before failure, know which parts will require replacement, and develop and maintain the product efficiently. The interdependency of each system upon the other is a prime weakness, and any defect or glitch can render ineffective. This combination of process, analytics, and technology are most effective when all three processes work in tandem, supplementing each other and complementing their weaknesses to deliver maximum impact. Inventory management is often the biggest challenge, since the majority of maintenance is reactive instead of proactive, leading to no foresight of inventory to be maintained. Reliability models and predictive analytics can help reduce the portion of reactive maintenance activities, ultimately leading to efficient deployment of field teams to remote locations. The success of a service-based business model for aftermarket services requires the seamless integration and optimization of people, process, and technology. Large organizations due to their size may face challenges in implementing new initiatives since a deficit in knowledge in future technology is a hindrance. Leveraging partners who excel in these areas could bridge the knowledge gap and facilitate seamless integration. Our survey respondents indicated the same, with 42% of total respondents looking to hire resources for process monitoring and optimization, and 36% looking to partner with single-party external vendors for process and analytics support. treated as a process that underpins the fabric of enterprise processes, such as field service, parts management, and so on. Aftermarket services can enhance manufacturers’ competitiveness significantly if Data-to-Insight and Insight-to-Action processes are reimagined with technology and analytics solutions at their core. The following example of aftermarket service contract analytics illustrates how intelligent operations run by integrating process expertise with effective technology and Data-to-Action AnalyticsSM can improve products and processes.

Spotlight

Aftermarket service is now an important driver of revenues and profitability for industrial equipment manufacturers. The shift from the traditional product-based to services-based business models requires organizations to develop innovative service programs and achieve service excellence. Intelligent operations enabled by rethinking business processes with advanced technology and analytics at their core and a feedback loop for continuous improvement can help companies navigate this change successfully. For companies that manufacture heavy industrial equipment, this shift represents a fundamental change in the business model, since equipment manufacturers must now have a clear view of how the product is going to perform in the field, have knowledge of usage before failure, know which parts will require replacement, and develop and maintain the product efficiently. The interdependency of each system upon the other is a prime weakness, and any defect or glitch can render ineffective. This combination of process, analytics, and technology are most effective when all three processes work in tandem, supplementing each other and complementing their weaknesses to deliver maximum impact. Inventory management is often the biggest challenge, since the majority of maintenance is reactive instead of proactive, leading to no foresight of inventory to be maintained. Reliability models and predictive analytics can help reduce the portion of reactive maintenance activities, ultimately leading to efficient deployment of field teams to remote locations. The success of a service-based business model for aftermarket services requires the seamless integration and optimization of people, process, and technology. Large organizations due to their size may face challenges in implementing new initiatives since a deficit in knowledge in future technology is a hindrance. Leveraging partners who excel in these areas could bridge the knowledge gap and facilitate seamless integration. Our survey respondents indicated the same, with 42% of total respondents looking to hire resources for process monitoring and optimization, and 36% looking to partner with single-party external vendors for process and analytics support. treated as a process that underpins the fabric of enterprise processes, such as field service, parts management, and so on. Aftermarket services can enhance manufacturers’ competitiveness significantly if Data-to-Insight and Insight-to-Action processes are reimagined with technology and analytics solutions at their core. The following example of aftermarket service contract analytics illustrates how intelligent operations run by integrating process expertise with effective technology and Data-to-Action AnalyticsSM can improve products and processes.

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