Derco Holding is visiting Asian Aerospace 2002 buoyed by record sales of $215 million for 2001 – doubling its turnover since the last Singapore airshow.
Derco (Hall A/821) provides parts distribution, customers repair and overhaul, programme management, custom kits, inventory management, component management, manufacturing and other services through its seven subsidiaries: Derco Aerospace, Derco Repair Services, IDC Aerospace, Sheffield Manufacturing, Derco Logistics, Derco Aerospace Canada and Derco Aircraft Sales & Leasing.
Despite the downward trend in the aerospace industry, Derco has continued to build on its market leadership and strength in Lockheed Martin C-130 Hercules support, while strongly expanding in military fighter and rotary-wing aircraft support.
The Derco Aerospace subsidiary had enjoyed steady growth in sales, has signed several multi-million dollar contracts to support a variety of foreign air forces and increased its US government business.
Distributor
The company has emerged as the largest military aircraft full service spare parts distributor in the world – increasing services while reducing prices through better economies of scale.
While most analysts predict continued economic hardship for the commercial aerospace industry, this blip may bypass defence suppliers.
The US government has proposed a $48 billion increase for the 2003 defence budget, in addition to the $55 billion budget increase in 2002.
And while foreign militaries may not increase spending, they are expected to turn to upgrades and modifications to extend the lives of their aging fleets while avoiding costly purchases of new aircraft. Both of these indicators bode well for Derco.
"Derco has managed to minimise the negative effects of the current economy and continue to grow, posting an impressive 105% gain in sales in the last three years," says chief operating officer Mark Hoehnen.
"We have every reason to believe that Derco will continue to grow vigorously and remain dominant in the military support aftermarket in 2002 and beyond."
Source: Flight Daily News
