>>> WELCOME BACK TO "OVERTIME." THE USPS TRUCK OUTSIDE YOUR HOUSE MIGHT LOOK DIFFERENT SOON. OSHKOSH DELIVERING THE FIRST OF NEW GENERATION DELIVERY VEHICLES FOR THE GOVERNMENT AGENCY AFTER -- OR QUASI GOVERNMENT AGENCY AFTER WINNING A 2021 CONTRACT FROM THE U.S. POSTAL SERVICE TO MODERNIZE THE FLEET. THE CONTRACT IS UP FOR 165,000 VEHICLES ON $182 MILLION INITIAL INVESTMENT. JOINING US IN AN EXCLUSIVE INTERVIEW IS OSHKOSH CORP CEO ON SET. GOOD TO HAVE YOU. >> GOOD TO HAVE YOU AND JON TO HAVE ME TODAY. HAPPY TO BE HERE. >> I REMEMBER A COUPLE OF YEARS AGO WE WERE TALKING ABOUT YOU WINNING A CONTRACT AT THE TIME IT WAS SEEN AS A CONTROVERSIAL CONTRACT AWARD. IT WAS CONTESTED BY THE OTHER COMPETITOR WHO IS NO LONGER IN THIS MARKET, IN THIS WAY. BUT WE TALK ABOUT ELECTRIFICATION OF VEHICLES. WE TALK SO MUCH ABOUT IT ON THE CONSUMER SIDE. YOU'RE ON THE COMMERCIAL SIDE. STARTING WITH THE POSTAL SERVICE, WHAT ARE YOU SEEING IN TERMS OF THE OPPORTUNITY AND IMPACT OF THAT CONTRACT, ESPECIALLY AS WE'VE SEEN THE INFLATION REDUCTION ACT JUST CONTINUE TO PROPEL DEMAND FOR THESE EVs? >> SURE. LET ME JUST REMIND EVERYBODY WHO WE ARE AS A COMPANY. OSHKOSH CORPORATION, WE'VE BEEN IN BUSINESS A LONG TIME. AND WHAT WE DO IS WE DESIGN AND DEVELOP PURPOSE BUILT VEHICLES AND EQUIPMENT FOR PEOPLE IN OUR COMMUNITIES WHO DO THE TOUGHEST WORK. SOLDIERS, FIREFIGHTERS, PEOPLE THAT WORK AT GREAT HEIGHT IN MANY DIFFERENT OCCUPATIONS WITH OUR BOOMS AND LIFTS, PEOPLE ON THE TARMAC OF AN AIRPORT THAT HAVE TO DO TOUGH WORK, AND NOW OUR NEWEST SEGMENT, LAST MILE DELIVERY AND SERVING THE POSTAL CARRIER AND ALLOWING THEM TO BE MORE PRODUCTIVE AND SAFER AND MORE COMFORTABLE TO EXECUTE THEIR MISSIONS EVERY DAY THAN THEY'VE EVER BEEN BEFORE. >> OKAY. WHICH PART OF THE BUSINESS IS GROWING FASTER IN TERMS OF DEMAND, GIVEN THOSE DIFFERENT MARKETS, GIVEN THE FACT WE DO SEE THIS PUSH TOWARDS ELECTRIFICATION, AND WE ALSO HAVE THIS INVESTING INTO NEW INFRASTRUCTURE. >> YEAH, SO, FIRST OF ALL, THE ELECTRIFICATION WORLD FOR THE COMMERCIAL MARKETS, I THINK, IS VERY DIFFERENT IN TERMS OF DEMAND CREATION THAN COMMERCIAL -- I'M SORRY, PASSENGER CARS, I'LL SAY. WHEN WE DEVELOP AN ELECTRIC VEHICLE, FOR LAST MILE DELIVERY OR A 40,000 POUND FIRE TRUCK OR REFUGE/RECYCLING VEHICLE, OR A VEHICLE ON THE TARMAC OF AN AIRPORT OR AN AERIAL BOOM, WE DO IT WITH THE CUSTOMER'S VALUE PROPOSITION IN MIND. AND WE KNOW WE HAVE TO DELIVER THEM AN ECONOMIC BENEFIT. SURE, EVERYONE LIKES THAT IT'S BETTER PERFORMANCE AS AN ELECTRIC PRODUCT, THEY LIKE ZERO EMISSION BUT IT HAS TO PROVIDE ECONOMIC BENEFIT. WHEN IT PROVIDES ECONOMIC BENEFIT, THERE'S AN INCENTIVE FOR COMMERCIAL OPERATORS TO ADOPT IT. >> SPEAKING OF, THERE WAS A YELLOW FLAG ON EVs WITH HERTZ, WHEN THEY MADE THIS BIG BET ON TESLAS AND EVs AND GOT CAUGHT BY MAINTENANCE COSTS ON THE OTHER END. HOW ARE YOU HELPING CUSTOMERS PENCIL OUT WHAT THOSE COSTS ARE GOING TO BE, HOW THE REFUELING OR RECHARGING IS GOING TO WORK AND WHETHER THEY HAVE THE CORRECT INFRASTRUCTURE IN THE RIGHT PLACES TO GET THE ECONOMIC BENEFIT. >>. >> THAT'S ALWAYS A PACING ITEM. THE U.S. POSTAL SERVICE IS PUTTING ELECTRICITY RECHARGING IN PLACE AND THEY'RE DOING IT FASTER THAN ANYBODY ELSE IS DOING IT. YOU'LL SEE OUR DEMAND AND OUR DELIVERY FOR ELECTRIC LAST MILE DELIVERY VEHICLES, GO FASTER THAN OTHER MARKETS BECAUSE THEY'RE GETTING THEMSELVES READY FOR AN ELECTRIC FUTURE. I THINK YOU'LL SEE PRETTY RAPID ADOPTION IN THE ENVIRONMENTAL SERVICES SPACE, THAT'S REFUSE AND RECYCLING COLLECTION, AND THE CUSTOMERS ARE STARTING TO RECOGNIZE THEY NEED TO BUILD OUT THE INFRASTRUCTURE TO BE ABLE TO ADOPT THESE VEHICLES. ONE OF OUR BIGGEST CUSTOMERS, REPUBLIC, HAS ALREADY SAID THIS IS THE VEHICLE OF THE FUTURE FOR THEM. A LOT OF IT GETS PACED BY HOW READY AND HOW QUICKLY CAN A CUSTOMER PUT THE RECHARGING INFRASTRUCTURE IN PLACE. >> WHEN WE TALK ABOUT ELECTRIFICATION, ANOTHER AREA YOU INVESTED HEAVILY AND ON THE CUTTING EDGE, AND I THINK ABOUT SOME OF YOUR DEFENSE CONTRACT WORK BEING TIED TO THIS, HAS BEEN AUTONOMY. HOW DOES THAT CONTINUE TO EVOLVE AS WELL? >> AUTONOMY, I THINK, IS WHERE WE REALLY MAKE A DIFFERENCE AS A SUPPLIER TO OUR CUSTOMERS. WE THINK ABOUT THE PEOPLE THAT ARE DOING THE HARD WORK. WE KNOW THAT AUTONOMY MAKES A HUGE DIFFERENCE. IT MAKES A DIFFERENCE IN HOW SAFE PEOPLE ARE. IF YOU LOOK AT ONE OF OUR BOOM LIFTS IN THE JLG PRODUCT LINE, WE HAVE ALL SORTS OF AUTONOMY TO MAKE IT REALLY SAFE FOR THE OPERATOR WHERE THEY'RE NOT GOING TO GET THEMSELVES INTO A TROUBLED SITUATION WITH THE AUTONOMOUS FUNCTIONALITY. THEY CAN JUST FOCUS ON THE JOB THAT THEY'RE UP THERE TO DO. SO WE DO THAT ACROSS OUR PRODUCT LINES. IT'S ALL ABOUT DRIVING PRODUCTIVITY. EVERYBODY CARES ABOUT PRODUCTIVITY. IT'S DRIVING SAFETY FO
