Mack Trucks has started production on medium-duty trucks in its brand-new Roanoke Valley Operations (RVO) facility in Virginia.
Mack invested $13 million in equipment and tooling in the RVO facility to produce only medium-duty models after its exit from that market segment 18 years ago. The facility also employs production methods and standards that comply with Center for Disease Control’s COVID-19 guidelines.
- New MACK trucks facility coming to Roanoke County (Jan 30, 2020, WSLS 10)
This post is based on the CCJ Digital article, Mack begins production of its new medium duty entry, by Jason Cannon, September 22, 2020, and the YouTube video in the Spotlight. Image source: Narongrit Sritana/Getty Images
1. What role does forecasting play in Mack’s medium-duty truck operations?
Guidance: Forecasting has helped Mack to anticipate a 40% reduction in the new truck market and a production delay due to COVID-19. As a result, Mack is able to proactively plan its truck production to meet customers’ demand in the medium-duty market segment.
2. What are the reasons for Mack’s decision to invest in its Roanoke Valley Operations facility?
Guidance: Mack needs a new facility that is dedicated to making only medium-duty trucks. Mack is expecting a shift in demand because medium-duty trucks are ideal for urban stop-and-go trucking operations. They are exempted from the 12% Federal Excise Tax, and can be operated without requiring a Commercial Driver’s License.