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  "documentTitle": "Generac Holdings, Inc. (GNRC)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
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  "presentationDate": "2022-06-22 00:00:00",
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  "notes": "Includes a mix of charts, press release excerpts, and a comparative table of expansion metrics.",
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      "text": "Spruce Point believes Generac is caught in a classic over-expansion trap whereby it increased capacity 4x for home standby generators since the pandemic.",
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      "text": "Expected Capacity Ramp",
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      "text": "Capacity Planned To Increase 4x Since COVID-19",
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      "text": "Competition Doubling And Tripling Capacity",
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      "text": "capacity expansion: 4x",
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      "kind": "paragraph",
      "text": "Spruce Point believes Generac is caught in a classic over-expansion trap whereby it increased capacity 4x for home standby generators since the pandemic. In response, competitors also doubled and tripled capacity. Now with consumer spending slowing, mortgage rates doubling, and housing poised to slow, we expect demand to decline and Generac’s margins to be weighed down from the added overhead.",
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      "kind": "quote",
      "text": "With this expansion, we will more than triple our current capacity for residential standby generators and take further advantage of our world-class engine manufacturing facility that we more than doubled in the last two years. We are committed to supporting our valued dealer network and delighting the end customers that we serve. — Brian Melka, group president - Kohler Power.",
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      "text": "Comparison of expansion metrics for Briggs & Stratton, Kohler, and Generac.",
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      "kind": "title",
      "text": "We Believe Generac Over Expanded At The Wrong Time Ahead Of A Major Slow Down",
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