Abandoning the North American Market

July 7, 2004 - Last week I was left scratching my head wondering what UpRight is up to now. This one-time worldwide force in aerial work platform and aluminum scaffolding products continues to die on the vine here in North America -once its biggest market. A recent press release and a subsequent discussion with UpRight's President John Coughlan answered some questions, but raised a few new ones. In August the company plans to cease manufacturing at its plant in Madera, Calif. Certainly, its tumultuous existence since emerging from Chapter 11 has left the company changing directions as often as a politician running in a tight election.

After years of mismanagement, the bankrupt company consolidated its North American operations in Madera from Selma, Calif., followed by a move to outsource production when demand for its equipment plunged in a sour economy. Reports that the company may set up shop in Mexico is more speculation than fact, according to Coughlan. "Our representative was misquoted, but we are keeping our options open," says Coughlan.

A previous discussion with Coughlan in February offered some level of hope for the company's continued presence as a manufacturer in North America and a global force with a now expanding product range. The subsequent unveiling of the UI40SB 40-foot boom lift and UI46SJB jib-fitted version back in March added to that perception.

Unclear about where boom production will take place with the closing of the Madera plant in August, I asked Coughlan to explain. The business model calls for the utilization of a global supply chain, which will enable the company to shift production to where the market attracts it. But if the only other plant is the current one in Ireland , it would seem that all production will shift to the Emerald Isle. When I asked Coughlan about this, he was evasive, stating "I'm not prepared to share that information with my competitors."

The current unfavorable exchange rate with the Euro and shipping costs would seemingly shrink the already tight margins manufacturers are living with here in North America . I must say that Coughlan seems pretty confident in his plan, but as we all know, the proof is in the pudding.

UpRight has remained successful in Europe , Australia , and the Pacific Rim ; and it continues to establish itself in emerging markets. Perhaps, the company is prepared to survive without being the major player it once was in North America . So for now Coughlan reaffirmed his commitment to a major presence in North America , but it will not include the production of any equipment. Even with the announced establishment of a major distribution, parts and service support center in Fresno , Calif. , will this business model be enough to satisfy the largest aerial work platform market in the world?

One thing is for sure-yet another North American produced aerial work platform company has joined the ranks of dozens others either consolidated by Terex or ground into dust by JLG.