Carpenter traces its roots to 1918, in Mitchell, Indiana. Local blacksmith Ralph H. Carpenter established his own blacksmith works; at the time, part of the business involved building and repairing horse-drawn wagons. At the time, in many rural areas, these were still adapted to carry people simply with the addition of wooden benches. Inspired by the merger of two local school systems in the area near Mitchell, in 1922, Carpenter shifted from repair to construction of new bodies, constructing his first wooden-bodied "kid hack". By the mid-1920s, motorized truck chassis formed the basis of all vehicle bodies. Although still constructed primarily of wood, the new bus bodies were now reinforced by steel in the exterior and framing.