Waukesha-based Husco announced this week that it has secured $200 in newly awarded projects. In addition to this new work, Husco plans to make $55 million in capital investments across all of its facilities globally and hire 250 new employees. The new contracts and investments were announced Thursday at the company’s headquarters during an event
Waukesha-based Husco announced this week that it has secured $200 in newly awarded projects. In addition to this new work, Husco plans to make $55 million in capital investments across all of its facilities globally and hire 250 new employees.
The new contracts and investments were announced Thursday at the company’s headquarters during an event hosted by the Association of Equipment Manufacturers.
Husco, a manufacturer of hydraulic and electro-mechanical components for automotive and off-highway application, will see nearly 50% growth in the coming years due to its newly secured contracts, said Austin Ramirez, president and CEO, during Thursday’s event. The company recorded nearly $550 million in sales in 2023.
[caption id="attachment_599006" align="alignleft" width="300"] A wheel-end disconnect[/caption]
Roughly $10 million in capital expenditures are earmarked for Waukesha, said Ramirez. The investments will include new manufacturing equipment and technology. Approximately 100 of the 250 new employees will be based at the company’s Waukesha headquarters.
In addition to Husco’s ongoing investments, the manufacturer is continually working to create new technologies for all vehicle types.
Some newer products on display Thursday included a wheel-end disconnect, a technology that allows the front drive system on an EV to disengage when additional power or traction aren’t required, and a nautilus glycol control, which essentially prevents an EV from overheating.
BizTimes reporter Ashley Smart spoke with Ramirez Thursday to learn more about how Husco is navigating the shifting automaking landscape.
How have you seen automakers handling the ongoing transition to EVs?
"We've worked really hard at Husco to have a diversified product portfolio so we can succeed and grow, regardless of how the vehicle mix changes over time. I think the U.S. automakers over invested in EVs over the last five years, under invested in internal combustion and hybrid technologies, and they're just now realizing that the consumer doesn't want just EVs. EVs are only about 7% of new vehicle sales in the U.S. It's going to continue growing in the future, but it's not going to become 50% in the next few years. I think the industry is trying to adjust to that fact and rebalance more towards hybrids and internal combustion engines. There are a lot of suppliers out there that invested huge amounts of capital to make EV components. They're going to wind up being very underutilized because of industry overestimating how many vehicles would be needed."
What do American automakers need to do to remain competitive in the EV space, especially when competing against China?
"China is dominating the EV market because it heavily subsidized both the consumer buying electric vehicles and the Chinese companies that are developing and making electric mediums. I think what America can do is let the free markets work. We will innovate in ways to compete with the Chinese. It's what we have always done. It's a more efficient way to generate innovation than trying to direct it from the state. I think in the future, there will be more solutions than just battery electric vehicles. It may be hydrogen, maybe hybrids, maybe other technologies that we haven't even thought of today. I think letting the free markets work, things will eventually sort themselves out."
How is Husco preparing for a change in national leadership following the upcoming presidential election?
"The two big issues we care about right now are taxes and trade and you've got one candidate that will probably lead to higher taxes and another candidate that has committed to erecting a lot of new trade barriers. There are downsides both ways, and we're trying to make sure that we're prepared to navigate either scenario."
What are you hoping attendees take away from (Thursday's) AEM event?
"Manufacturing is alive and well in Wisconsin. I'm not sure everybody appreciates that. As you walk around (Husco), you can see how high tech it is, both the products, but also the manufacturing process."
