UTI Announces Optimization Initiatives At Campuses In Arizona, Florida

UTI Announces Optimization Initiatives At 2 Campuses

Benefits from blended learning model and efficient capital deployment for the Arizona campuses will realize an estimated $6.5 million annualized adjusted EBITDA benefit by the end of fiscal 2022.

Universal Technical Institute, the nation’s leading provider of transportation technician training, announced the purchase of its Avondale, Arizona, campus and plans to consolidate the operations of its Phoenix-based Motorcycle Mechanics Institute (MMI) into this facility. Separately, UTI announced that the company’s individual UTI and MMI Orlando campus facilities will be consolidated and reconfigured into one site. 

“These initiatives are part of our ongoing real estate optimization strategy and consistent with our focus on utilizing our strong balance sheet to support our growth and diversification plans,” said UTI Chief Executive Officer, Jerome Grant. “As we enhance our blended learning model, where students participate in instructor-led lectures and demonstrations online and complete their hands-on training in our labs, we’re also able to consolidate and reformat space to decrease fixed expenses, support new offerings and allow for growth to meet increasing student interest and continuing employer demand for our graduates. 

“By combining our Avondale UTI and Phoenix MMI campuses, Avondale will become our largest campus in terms of size, number of students and breadth of programs,” Grant explained. “Deploying capital to acquire this strategic site will yield significant economic benefits, and we are excited about the forward momentum we are building toward further growth, diversification and enhancement of our student offerings.”

UTI acquired the Avondale campus, which is comprised of a 283,000 square-foot specialty use building on a 23-acre parcel of land, in an all cash transaction for $44.5 million. UTI has been the sole occupant of the facility since it was built for the company in 2004. Vacating the Phoenix MMI campus site, currently comprised of approximately 173,000 square feet, and consolidating the MMI operations into the Avondale campus, will be complete by the end of fiscal 2022. 

Once fully implemented, the company expects to reduce annual occupancy and related operating expenses by approximately $6.5 million from purchasing the Avondale campus, vacating the Phoenix MMI campus site and consolidating the MMI operations into the Avondale campus. The expense reductions will be phased in over the next two years and are expected to be fully realized by the end of fiscal 2022.  

In Orlando, UTI currently has plans to consolidate its motorcycle and marine training programs into one location with its automotive, diesel and manufacturer advanced training programs, reducing the current aggregate 263,000-square-feet by an estimated 75,000 square feet. UTI is evaluating lease and purchase options for the necessary space to facilitate the consolidation. The company expects to complete the Orlando consolidation and reconfiguration by the end of fiscal 2021. Additional details will be provided once the Orlando transactions are completed.        

Industry and employer partners continue to report strong demand for UTI’s graduates, and the combined campuses in Arizona and Florida will offer training for automotive, diesel, and motorcycle technicians, as well as advanced education in the vehicles and technology of leading manufacturer brands like BMW, Ford, Cummins, Harley-Davidson, Mercury Marine and Volvo. The Avondale campus also offers courses in welding and the Orlando campus is the sole location for the MMI Marine program. 

You May Also Like

Advance Auto Parts, Worldpac Wrap Up STX 2024

Nearly 3,400 registrants attended STX, which was hosted in Nashville, April 24-28, at the Gaylord Opryland Resort & Convention Center.

STX Wrap Up

Advance Auto Parts and Worldpac, a wholly-owned subsidiary of Advance, concluded its 2024 Supplier & Training Expo (STX) with record-breaking participation from repair shop owners, auto technicians, supplier partners and other attendees.

Nearly 3,400 registrants attended STX, which was hosted in Nashville, April 24-28, at the Gaylord Opryland Resort & Convention Center. Attendees participated in three days of automotive training totaling 24 hours of class time, a supplier expo, keynote speakers and networking, before a celebratory event at the Country Music Hall of Fame and Walk of Fame Park in downtown Nashville, featuring a concert by multiple-time award-winning country music group, Little Big Town. 

Fix Network World Celebrates Apprenticeship Program Approval

The program is also celebrating the graduation of its first apprentice, Gabrial Duran.

University of the Aftermarket Encouraging Registration for Data Standards Course

This live, two-day educational program is open to anyone who works with the aftermarket standards ACES and PIES, or who would benefit from developing a general knowledge base on them.

UTI, Interstate Batteries Renew Alliance

The Universal Technical Institute announced a five-year renewal of its alliance with Interstate Batteries.

Universal Technical Institute
ASE Education Foundation Seeking Outstanding Instructor

Nominations are being accepted for the 2024 Byrl Shoemaker/ASE Education Foundation Instructor of the Year award.

ASE Education Foundation Seeking Outstanding Instructor

Other Posts

MEMA Sustainability Hour With Pirelli Tire Announced

The webinar will feature experts from MEMA and Pirelli Tire North America.

MiX Sponsors Northwood University Student at Vision Conference

“The collaboration between MiX and Northwood exemplifies a strong partnership committed to bridging the gap between industry professionals and emerging talent,” said Nikki Rankin, MiX council lead.

Registration Open for Aftermarket 101, Heavy Duty 101  

Aftermarket 101 will be held May 20-21, at Mahle Aftermarket, Inc.; Heavy Duty 101 is set for May 22-23, also at Mahle.

Registration Open for Aftermarket 101, Heavy Duty 101  
ASE Practice Tests Available Online

Those preparing for ASE certification can get a good idea of what to expect by adding the official ASE practice tests to their study plans.

ASE Practice Tests Available Online