Close to customers
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Posted Date: 01/03/2008
Issue: Executive & VIP Aviation International March 2008
Publication: Executive & VIP Aviation International
“We must remain close to our customers,” says Tray Siegfried, Vice President of Strategic Growth at Tulsa-based Nordam Group, emphatically. He is referring to the geographic and strategic growth pattern he is pursuing for this family business. “Our primary products on the business jet side are interior products such as cabinetry and interior panelling; as well as nacelles and thrust reversers,” comments Siegfried. “Our direct interface for both interior components and engine products is with the OEMs. In terms of business jets, this work is mostly new manufacturing.” Of course spare parts provisioning – largely for nacelles and thrust reversers – brings Nordam closer to the aircraft operating community but, in essence, Nordam facilitates the fulfilment of OEMs’ order books.
Nordam’s list of OEM customers is lengthy and includes the likes of Cessna and Embraer for its interior components products. Recent announcements include Nordam’s delivery of the first mock-up of CJ4 executive cabinetry to Cessna. Nordam’s Wichita facility – which opened in April 2007 – will build the CJ4 cabinetry. The new 120,000ft2 Wichita facility replaced the existing 45,000ft2 plant. It supports ongoing programmes, like those for the CJ4, the Pilatus PC-12 and the Embraer Legacy 600, but can also support additional incoming programmes.
In 2006, Nordam's Brazilian interiors facility began deliveries to Embraer. This facility is a joint venture with Jet Star Aeronautic Interiors and is situated close to Embraer’s factory in order to streamline production, quality control and delivery. The facility supports the finishing and assembly of Nordam's Legacy 600 interiors programme.
Despite the significant interior products capability, Nordam is not and does not plan to become a completion centre. “Our roots for nearly 40 have been in composite manufacturing and repair. Primarily we are a manufacturing company,” Siegfried reminds us.
Composite technology for interior components – as well as nacelles and thrust reversers – is a very important part of what Nordam does. “The industry is looking for light-weight, low-cost and fire retardant materials,” comments Siegfried. “It is critical for us to continue to undertake the necessary research. We have done and continue to do studies on specific areas. Our customers have asked for these studies but it is more difficult to perform these studies than meets the eye. There is always a certification problem, particularly regarding flammability, and it takes more and more dollars and time.” Despite the strong research background in this area, Siegfried comments that this work has not yet translated into a firm business plan. However, Nordam has successfully developed a composite window frame for the 787 on the commercial airliner side.
The Nordam plan
The Nordam Group comprises two main halves. The first pertains to manufacturing and the second to repair. Within the Manufacturing Division sits the Interiors and Structures Division and alongside that is the Nacelles and Thrust Reverser Division. “The Interiors and Structures Division has been good to us. It is one of our bread and butter businesses. We got into the cabinetry business in the late 1990s and have continued to grow it,” says Siegfried. “We now have Cessna, Embraer, Pilatus and Piaggio business in this division.”
But OEM order books are bulging and the knock-on effect for interior component manufacturers and specialist materials developers is surely very positive at present. “We want to be a qualified, dependable, safe supplier. We see this is critical for the entire industry. But we also have to be close to the customer, especially when it comes to the interior products. Some of the cabinetry tasks require onsite support and service which is why we have a joint venture in Brazil,” comments Siegfried.
The next move is to Mexico. “In 2008 we’ll have a new facility in Chihuahua, Mexico. It will be a general manufacturing facility to support all of our divisions and any of our customers. In order to step up and serve the customer and take advantage of what the customer is offering us, we’ve needed to make investment in our facilities,” he says, adding that investment in manpower is equally important. “We offer internships, mostly to engineers, in Oklahoma. This has been very successful.” The Wichita facility is very well located, not only for its proximity to business jet OEMs but also to the pool of talent available in the area.
Part of the progress at Nordam is wrapped up in the adoption of strategic management techniques like Six Sigma and paperless workflows. “These are the things we need to do in order to stay competitive and out in front as a supplier of these products and services,” comments Siegfried.
As to the future, when asked whether Nordam has reached the size and shape it needs to be, Siegfried responds: “We’re never fully satisfied around here. In the business jet market, our two mainstays are our interior components and thrust reversers businesses but I would like to develop our status as a supplier of acrylic and glass from our Transparency Division and to develop further our flat panel business.”
But the next phase of Nordam’s development could take the manufacturing and repair house in diverse directions. “We have had a lot of requests for other primary and secondary structures,” he confirms. Perhaps diversification of Nordam’s products would support the OEMs’ order books further and result in faster fulfilment of business jet orders. With delivery periods stretching years into the future, the airframe and engine community may just seek to relieve some of the pressure through harnessing the skills and facilities that have been available in the aerospace industry – through companies like Nordam – for decades.
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