3.	INVENTORIES

Inventory costs include materials, labor and factory overhead. Inventories are stated at the lower of cost or market (net realizable value), determined on a first-in, first-out basis. Appropriate consideration is given to obsolescence, valuation and other factors in determining net realizable value. Revisions of these estimates could result in the need for adjustments. Inventories, net of reserves, at September 30, 2011 and December 31, 2010 consisted of the following (in thousands):


	September 30, 2011		December 31, 2010
Chassis	$	12,615	$	7,585
Raw materials		21,875		17,243
Work in process		9,895		7,181
Finished goods		10,700		6,929
	$	55,085	$	38,938