Bison Manufacturing: Product Expansion
Heavy Industry
By Libby John   
Wednesday, 19 March 2008
Bison Manufacturing, horse trailers, Milford, Ind.
Bison builds aluminum-over-steel and all-aluminum horse trailers with living quarters.


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Bison Manufacturing ’s revenues quadrupled between 2003 to 2007. The company believes the increase in revenue was due primarily to a significant change in focus when it discontinued building steel horse and livestock trailers and began building large aluminum-over-steel and all-aluminum horse trailers with living quarters.    

This significant change in focus was implemented by Warrick Corp., which acquired Bison in 2002, and had experienced tremendous success in the recreational vehicle industry, President Keith Griffin says.

“We wanted to get out of the livestock trailer business because it was low demand, low profitability,” he explains. “It was also labor-intensive and we wanted to expand what we offer and capture more of the market.”

Also at that time, the company began distributing products on a national basis, concentrating on the Southeast, Southwest and Midwest. The company strives to be at the lower end of the price spectrum. The average price of its trailers – from 25 feet to 45 feet – is between $40,000 and $70,000.

The company’s revenues in 2002 were approximately $6 million. When it began incorporating living quarters into its trailers, revenues increased to $12.8 million in 2003. Revenues continued to rise and last year, Bison had revenues of $27.8 million and projects to top $30 million this year.

As revenues grew, so did the company. For example, its number of employees has increased from 35 in 2002 to 150 today. “We keep a skinny, low-budget operation and kept our overhead low,” Griffin says. “That’s how we are successful in keeping our prices low. We get a core group of workers who buy into our philosophy and run with them.”

It also plans to increase its 75,000 square feet of manufacturing space in Milford, Ind., after it meets the $35 million-mark in the next year or so. “We will max out this facility in the $30 million to $35 million range,” he says. “We are in the process of adding additional capacity to the complex this coming spring.”

Flexible to Market Changes
In 2005, the company was sold to Monaco Coach Corp., a high-line recreational vehicle company and the largest manufacturer of diesel motor homes. Griffin says the new parent company made a few changes, such as adding dealer financial programs, upgrading communications systems and implementing more employee benefits. “Other than that, they’ve left us alone and have been very good in giving us support,” he adds.   

Bison Manufacturing is able to react to market changes quickly because its entire operation is located on-site. “Many companies build the steel frame and ship them elsewhere for the conversion,” he says. “We have a definite advantage in that area. It takes us two weeks to build a trailer from start to finished product.   

“If we see something that we think customers or end-users might want, or would be good for sales, we try to feature it,” Griffin adds.

The company says it keeps its eye on the marketplace to follow customer trends. “If we see something out there that the competition is selling that looks like it might take off, we might look at it and design it, but make it cheaper,” he says.

For example, Bison is the first horse trailer manufacturer to incorporate a flush-floor slide-out concept, something the RV industry has done for years. “Innovations like that are easy; all we have to do is make it less expensive,” he says. “We get a lot of ideas from our parent company. We are continually bringing out new products and new ideas; that’s the main reason why sales has increased each year. We don’t rest. With the market being soft, we’re more aggressive than ever in terms of product design and manufacturing.”

Quality Control
Bison Manufacturing was certified by the National Association of Trailer Manufacturers several years ago and received certification from the Recreational Vehicle Industry Association in January.    

The certification verifies that the company’s manufacturing process meets the organization’s codes and standards for safety and customer assurance.

Its manufacturing site has three main plants, which represent each stage of the process:

  • A welding shop for frames
  • A trim shop
  • Living quarters or conversion plant, which installs plumbing, electrical work, cabinets and appliances and final inspection.

It also has a fourth building, which does the undercoding and metal washing prior to paint.

The company strives to incorporate lean manufacturing practices in all its plants. An ongoing educational process allows its management to attend lean manufacturing workshops, Griffin says. Also, Monaco Coach hosts Peak Performance Training, which covers organization, safety, layout processes and quality control.

Each building has a foreman and quality control inspector. “Each trailer is inspected before the next stage,” Griffin says. “[The equipment] never leaves the building unless they meet the established requirements.”

 
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