Oshkosh Corporation’s ( OSK Quick Quote OSK - Free Report) wholly-owned subsidiary — Oshkosh Defense LLC — recently announced the decision to open a factory in Spartanburg, SC, dedicated for developing the new fleet of mail delivery vehicles called the Next Generation Delivery Vehicle (NGDV) for the United States Postal Service (USPS).
The selection of South Carolina for engineering the NGDV was based on several factors, including availability of skilled workforce, advanced manufacturing infrastructure, as well as proximity to both Oshkosh’s supply chain and USPS vehicle maintenance facilities.
Oshkosh Defense plans to employ more than 1,000 individuals at the Spartanburg facility to put the vehicles together, while the on-site supply chain partners will likely require additional workforce, thereby, prompting further local job growth. Oshkosh Defense will revamp a massive warehouse facility in Spartanburg with state-of-the-art features required for large-scale manufacturing of these cutting-edge mail delivery vehicles. Production of the NGDVs is expected to kick off in the summer of 2023. Oshkosh Defense nabbed the multibillion-dollar NGDV contract this February. The NGDV is the USPS’s first large-scale fleet procurement in three decades, and the contract would replace its aging vehicle fleet. The USPS chose Oshkosh for the contract after years of deliberation over potential contenders, which included an all-electric option from Workhorse ( WKHS Quick Quote WKHS - Free Report) . Per the indefinite delivery, indefinite quantity contract, the Postal Service will pay Oshkosh Defense $482 million to finalize the production design and equip factories for production of 50,000-165,000 delivery vehicles over a period of 10 years. The new fleet will include zero-emission battery vehicles as well as fuel-efficient, low-emission vehicles. Oshkosh’s Defense unit designs, manufactures and markets military tactical wheeled vehicles and mobility systems. Oshkosh Defense offers a wide range of products, which include severe-duty, heavy- and medium-payload tactical trucks, hauling tanks, missile systems, ammunition, fuel, troops, and cargo for combat units. As the industry-dominating tactical vehicle manufacturer, it serves both domestic and international customers providing breakthrough technology at the best possible price. Oshkosh Defense aims to meet or exceed customers’ transforming needs with next-generation defense capabilities and innovative mobility systems. Oshkosh’s enhanced capabilities and commitment to deliver a wide range of electric vehicles, showcasing new sustainable technologies, has been driving the company since decades. It operates with unprecedented commitment to build, protect and serve communities around the world. Now, the latest contract will help the company bring unique reliability, safety, and maintainability to the NGDVs that will connect every home and business across the United States in the upcoming years. Oshkosh — peers of which include Navistar International and PACCAR ( PCAR Quick Quote PCAR - Free Report) — currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Notably, shares of the company have appreciated 66.2% in the past year, while its
industry has rallied 12.4%. Image Source: Zacks Investment Research Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better. See these 7 breakthrough stocks now>>