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Justin Bellis tightens the lug nuts on an independent front-end suspension typical for use on firetrucks or RVs.
Justin Bellis tightens the lug nuts on an independent front-end suspension typical for use on firetrucks or RVs.

Business Spotlight: Ride On

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From its 1920s beginnings as a foundry operating at 600 N. Prospect Ave. in Springfield, Reyco Granning LLC has traveled a long and winding route to Mount Vernon.

Established as Reynolds Manufacturing Co. in 1924, the company produced metal castings, structural elements and air conditioner components. The name changed to Reyco Industries in 1956, and the Springfield company moved to Mount Vernon in 1973. In the late ’90s, Tuthill Corp. purchased Reyco Industries and Indiana-based Granning Suspensions, combining to form Reyco Granning Suspensions.

By 2011, operations were consolidated to the 200,000-square-foot Mount Vernon plant, and new ownership is investing in product development with an eye on market share down the road.

Following the Great Recession, Reyco Granning started searching for a financial partner, and in February 2011, Chicago-area private equity firm MAT Capital agreed to a purchase.

“The company went through, obviously, a tough time – suffered contraction like a lot of other companies did – and now it’s nice to be back in a growth curve,” says Wayne Powell, vice president of marketing for Reyco Granning.

Today, the company produces vehicle suspensions for heavy-duty trucks, such as 1-ton trucks, tractor-trailers, motor homes, military vehicles and buses. Customers include Kenworth, Peterbilt, Freightliner and Great Dane.

Powell, who has worked with Reyco for more than a dozen years, including a stint as plant manager, says this automotive segment gets hit early when the economy drops, but it also starts to recover faster. “We’re sort of a leading indicator of what the economy is doing,” he says.

Until recently, Reyco’s products were predominately slider suspensions, which move back and forth on the trailer to aid in balancing the load. Last month, Reyco announced its RideMaster series, and the company is reconfiguring models previously in the product line to include nonsliding suspensions fixed permanently into place for use with livestock trailers and flatbeds.

Long-haul trucking company Trailiner Corp. is testing RideMaster products on its fleet. Deputy Vice President Larry Sanner says 150 of Trailiner’s 400 trailers are fitted with Reyco suspensions, and so far, “They’re problem-free.”

The product variation falls in line with the new owner’s vision. MAT Capital Managing Director Martin Beck said the firm chose to invest in Reyco because of its brand recognition and strong customer relationships.

“The brand name, the history, the quality of engineering innovation in its product base and the management team were the real drivers that attracted us to the business,” Beck says. “Our goal is to really try and grow the business, introduce new products and increase the market share in suspension components.”

During MAT Capital’s first year as owner, the firm made a personnel change at the top. David Compton was named Reyco Granning president in December, coming from a 30-year stint at Auburn Hills, Mich.-based FTE Automotive USA Inc. Compton, who succeeded interim President Ray Mueller, says two new suspension prototypes are in the works for this year.

“They already had some excellent new designs on the board ready to start prototyping,” he says. “We’re not just hanging our hats on one design – we’re actually going to cover all classes.”

That may be exactly what Reyco needs. Jim Frieze, vice president of maintenance for Springfield-based O&S Trucking Inc. views Reyco’s suspensions as innovative and quality products, but too often the manufacturer is not a preferred vendor with the companies he’s purchasing through.

While O&S has outfitted hundreds of its trucks with Reyco suspensions in the past, none of its current fleet is riding on them. The last time Frieze ordered, Reyco was not listed as a preferred manufacturer.

“I would have had to pay more per trailer in order to get (Reyco) suspensions,” he says. “With a tight economy, it was a situation we didn’t do. The last trailer order I purchased was 220 trailers, and even if that number is $1,000 per trailer, which seems minimal, that’s $220,000 on my side.”

As a wholesaler, Reyco doesn’t publish its prices, though Powell says its suspensions can retail for nearly $20,000 per unit. Powell says top-selling suspensions are for semitrucks, air conversion units for medium-duty ambulance bodies, and the independent front air units for motor homes.

With the backing of MAT Capital, a company under the umbrella of Asian businessman Steve Wang’s MAT Holdings, growth potential can now be funded.

MAT companies manufactured automotive parts, power equipment, fencing, and lawn and garden products to the tune of $660 million in 2010, according to Crain’s Chicago Business.

“We’ve got an excellent research and development group here,” Compton notes. “We’ve got a lot of knowledge to tap in to (and) contacts within the industry. There’s a great work force down here – very willing – they want the company to do well.”

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