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- [00:00]
Marsh Representative
At Marsh, we believe that perspective powers progress. That's why our individual businesses have come together as one company. A new marsh built to solve the world's most complex challenges and uncover new opportunities for our clients. We're better positioned than ever to help your business navigate obstacles and unlock potential across risk, reinsurance and capital, people and investments and management consulting. Learn more@visitmarsh.com podcast. Bloomberg Audio Studios Podcasts Radio news.
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John Pfeiffer
You're listening to Bloomberg businessweek with Carol.
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Massar or Tim Stanvak
Massar and Tim Stanvak on Bloomberg Radio. John Pfeiffer is the CEO of Oshkosh Corporation. It's a $9 billion market cap company. It's already up about 14% so far this year. The stock gaining 32% last year hit a 52 week high actually today. John, good to have you on the program. We've got a lot to talk to you about. So we want to just jump right, right in. The president just in the last half hour or so weighing in on social media, on dividends, buybacks, CEO salaries at defense companies, also saying institutional investors can't buy homes in the U.S. in your view, the president getting involved in day to day matters for companies. Is the president overstepping here?
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John Pfeiffer
Well, I'm not going to make a comment on that. You know, we, I just heard this news just like you just heard this news. It's been, you know, haven't fully process it, processed it yet. But I'll just let you know that a minority of our, of the revenue for Oshkosh Corporation comes through the defense business that we have. In fact, it's about 10% of our revenue. So I really don't know that this even applies to us. But we'll have to digest it and process it and, and see what it means. But we're mostly, you know, 90% of our business is serving commercial markets. You talked about it in your intro. Our equipment is all over communities where we all live and work. It's critical equipment that communities where we all live and work can't operate without what we do. And that's really the nature of our company is all these commercial segments that are so important to us all and how, how we serve those segments.
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Interviewer or Co-host
Hey, I just want to ask you one more question, then we'll move on. But in terms of the president, you know, having a president who is not bashful, John, about talking about different industries and doing certain things, does it make it maybe tricky for a CEO?
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John Pfeiffer
Well, I mean, you know, I think in today's world we have to be very agile and very nimble. And that's what we're, we're focused on, you know. So as we went through 2025, we saw an environment where we had a lot of geopolitical changes. And what I mean is we saw a lot of tariff environments happen, not not only by the United States, but around the world. And so we're a global company, of course. I mean, most of, of what we sell in the US Is made in the US We're a quintessential American manufacturer with plants all over the US but we're still a global company with global supply chains. And so we went about being nimble and, and got a lot of engineers and a lot of our supply chain professionals on tariff engineering work to make sure that we were trying to stay keep pace with the current environment of where we are geopolitically and with tariffs. We've had a lot of success doing that. We still have a little bit more work to do as we go into 2026. But I think it's, it's just an environment where you have to be very nimble and pay attention to what's going on around you and be able to adapt to it. And that's what we, that's what we do our best trying to make.
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Massar or Tim Stanvak
What work do you still have to do to mitigate the effects of tariffs?
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John Pfeiffer
Well, when you look at our product, it's very sophisticated product. There's a lot of technology on our product and it's very highly engineered product. So when we look at the tariff environment and we have to say move supply from one country to another or even some things, when we can reshore it, we can reshore it. But these are sophisticated components and materials. So it's not just a simple matter of moving a purchase order from one supplier to another. There's a lot of engineering and validation that goes into play and it sort of takes a concerted amount of, of time by our supply chain people and our engineers to make it happen. So it's still more of that, what I call tariff engineering work that we're continuing to do and we're having a lot of success with it.
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Massar or Tim Stanvak
Can you talk a little bit about the new U.S. postal Service delivery vehicle? Because about a year ago, a little over a year ago, that Reuters reported that the transition team was actually looking to cancel part of that contract, the part that has to do with, with EVs. And I'm wondering what's the latest between you, your firm and the White House with regard to how that contract will be fulfilled?
- [04:53]
John Pfeiffer
Oh, yeah, all systems go on this product. It's in production. It's in almost every state in the United States today delivering mail. We, we've got millions and millions of miles delivered already on these vehicles. The Postal Service absolutely loves it. The vehicle is the best last mile delivery vehicle ever produced. We produce them both. Internal combustion propulsion systems or battery electric propulsion systems. Depends on what the Postal Service wants in a.
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Massar or Tim Stanvak
How has that mixed. How has that mix changed during the Trump administration?
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John Pfeiffer
Changed at all? And it's not changed at all. Still the same.
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Massar or Tim Stanvak
So. Okay, sorry, go ahead.
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John Pfeiffer
What we've seen, the administration has said, hey, it's up to the Postal Service to decide what they want, if they want battery electric or if they want internal combustion. But we have seen no change in mix of orders from the United States.
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Interviewer or Co-host
What is that mix? I'm just curious.
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John Pfeiffer
It's about 7 today. It's about 70% battery electric and about 30% internal combustion.
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Marsh Representative
Interesting.
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Interviewer or Co-host
All right, so certainly a commitment when it comes to those vehicles.
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Massar or Tim Stanvak
Are the issues resolved with the initial production ramp? Like, are you at a full production rate today?
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John Pfeiffer
Hey, we're at, we're at or ahead of what the Postal Service's requirements are now. We're working with the, we work really closely with the Postal Service. We'll continue to produce more and more vehicles as we go forward and as their needs continue to develop. But we're at or ahead of the Postal Services requirements for deliveries. But you'll see us continue to get more units out the door as we go forward. But hey, it's full steam ahead with that program and it's a great vehicle. If you Google it, ngdv, you'll see a lot of even postal carriers uploading videos of how much improvement this has given them in terms of how they do their work.
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Interviewer or Co-host
It is a pretty cool vehicle and hopefully we can put some pictures out there on social or up for our listeners and viewers. Hey, one thing I want to ask you, John, you guys are at ces. This is the land of, you know, innovation disruption, if you will. I'm curious, in your portfolio, which products are furthest along on the path to full autonomy? Feels like that's what we are constantly talking about. And which are expected to be commercialized first. We have about a minute or so.
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John Pfeiffer
Yeah. Yeah. So by the way, we already put a lot of moments of autonomy into many of our end markets, whether it's construction equipment with JLG or, or it's in our airport markets or in the, in the environmental services markets like refuse and recycling. A lot of moments of autonomy now you'll see, you'll continue to see full autonomy probably start to come into play maybe in the airport markets. First, if you come to our booth here at ces, you see autonomous vehicles all over the place. And it's, it's applicable to last mile delivery as it is to environmental services, as it is to airports and, but we will take you through if you have the chance to see our booth. We'll show you what the airport of the future looks like. And there's autonomous vehicles all over. Instead of having a wing walker, you've got an autonomous vehicle doing the wing walking to bring airports in and out, or an autonomous vehicle pushing jets back from the gate.
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Marsh Representative
John.
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Interviewer or Co-host
John, we gotta run. Come back soon.
- [08:13]
Marsh Representative
Business challenges and opportunities are never one dimensional. At Marsh, we believe that to thrive, you need perspect. That's why our individual businesses have come together as one company, a newmarsh where each layer of our organization works even more closely together to provide you with a stronger, more panoramic perspective. We're now one firm, solving the world's most complex challenges and unlocking opportunities for you across risk reinsurance and capital, people and investments, and management consulting. As business continues to evolve, Marsh will always be here to help you overcome new challenges, answer new questions, and take advantage of new opportunities. We're better positioned than ever to provide the perspective you need to fuel progress forward. See how@visitmarsh.com podcast.