New president John Uczekaj is determined to fulfil late founder Ray Siegfried’s goal of doubling Nordam’s business
US manufacturing to repair group Nordam may have new leadership, but it is committed to achieving founding chief executive Ray Siegfried’s vision of building the privately held business into a $1 billion aerospace company.
Siegfried died in October after a long illness, but was involved until the end in planning the Tulsa, Oklahoma-based company’s strategy. This included completing leadership and governance changes begun in 2001 when he was diagnosed with Lou Gehrig’s disease. “It was important to him to have everything in place before he died,” says John Uczekaj (pictured left), who was named president just days before Siegfried’s death.
Uczekaj joined Nordam as chief operating officer in August 2004 after serving as executive vice-president and general manager of Honeywell’s $1 billion Aerospace Electronic Systems business. “They were looking for a succession plan, for a transition to a professionally managed corporation,” he says.
Uczekaj, who continues as COO, took over as president from Ken Lackey, who was made chairman after Siegfried’s death and remains chief executive. The new leadership’s challenge is to broaden Nordam’s market presence and grow the company from sales of almost $500 million last year to the $1 billion goal set by its founder.
That goal is achievable, Uczekaj believes, because Nordam has several strong operations, including producing nacelles and thrust-reversers, cabin interiors, radomes and transparencies, including windows and lenses. The company also has a substantial maintenance, repair and overhaul (MRO) business, specialising in bonded-honeycomb and composite structures.
Nordam’s repair division, with operations in Tulsa, Singapore and the UK, accounts for about 40% of annual sales. “The company was more heavily weighted towards MRO, but the thrust-reverser business has grown and the Tulsa repair operation has been struggling along with the US airline industry,” says Uczekaj.
Nacelles and reversers for business jets are Nordam’s strongest market, with equipment on the Cessna Citation Sovereign, Dassault Falcon 2000EX, Gulfstream G450 and Hawker 4000. The latest contract is to provide thrust reversers for Gulfstream’s G150, for which Nordam also supplies interior components.
The supply of interior shells and custom cabinetry for business aircraft is also a growing market. Nordam supplies cabin components for the Bombardier Learjet 60XR, Embraer Legacy and Pilatus PC-12 as well as the G150.
Nordam is now moving up to integrating interiors. The Learjet contract is for configured liners complete with passenger service units, designed using digital engineering models supplied by Bombardier. “We have taken cost out of the operation, and the interiors division growth is top and bottom line,” says Uczekaj.
Anchored by a “huge” contract to supply cabin windows for the Airbus A380, the transparency division has “great opportunity for growth”, says Uczekaj. “They have brought in automation, so they can add capacity without headcount,” he says. “They are vertically integrated, from building acrylic sheets to the final product, and control the supply chain and cost.”
Growth in Nordam’s repair division has come internationally. “We are adding capacity in the UK and preparing to double the size of Singapore,” says Uczekaj. “More repair business for next-generation aircraft is overseas, and we have to be closer to where the aircraft are maintained. The Far East is growing double-digit for us.”
Nordam’s military MRO business, including a new $90 million contract to repair Boeing B-52 nacelles and control surfaces, is also growing. “Military will be more than 10% of our business next year, where it has been less than 5%,” Uczekaj says. “We are trying to keep balanced between MRO and OEM and between business aviation, airlines and military.”
But the biggest challenge is in making the industry more aware of the company’s capabilities. “Europe is underserved by Nordam. There is a huge market space that we need to start growing in. We need to start winning some contracts,” says Uczekaj. To that end, the company has moved its European headquarters to Toulouse, to be close to Airbus.
The US airline market, meanwhile, remains tough. “We need to find the right formula to provide what our customers want at cost-effective prices,” says Uczekaj. “We need to create a model for the repair business that goes beyond just repairing parts. Airlines are not buying spares for next-generation aircraft, so we have to come up with ways to provide assets for them to use when components go for repair.”
Nordam is working with financial and other partners to put together different service packages that will be rolled out later this year. “Customers need more comprehensive repair approaches, and the right solution requires broader partnerships,” says Uczekaj. Nordam, meanwhile, is restructuring its own finances to give it the flexibility needed to benefit from the market changes, and to realise Ray Siegfried’s billion-dollar vision.
GRAHAM WARWICK / WASHINGTON DC
Source: Flight International
