ALAN PEAFORD
Smiths Aerospace is using Paris to showcase its new look and its new innovative approach to the engineering market following the merger with Dowty. With a massive stand in Hall 2A, the Anglo-American company is demonstrating all the many and varied components and systems that its group produces. "Put it all together and put some tin round the outside and you've got yourself an airplane," one exhibitor says. But for John Ferrie, Smith¹s president and managing director, putting all the separate parts of the business together to provide a cohesive company is the bigger challenge.
Announced
"When the merger with Dowty was announced there were a lot of people on the outside - and a few on the inside - who couldn't see where the value was going to come from, there were no great product overlaps and no clear synergies. "But when we put the two together we have come up with a business that can exploit its broad capabilities." That breadth is obvious the second you walk on the stand. Electronic systems such as the data management systems, flight management/controls, stores management systems, navigation and guidance systems represent 38% of the new business. Component manufacture such as fuel injectors, hydraulic lines, combusters and detailed precision machining is almost a third of the company. Actuation systems such as primary flight controls and propellers represents 15% with customer services, detection and protection and marine systems making up the remainder. "In fact we have a perfectly balanced business," says Ferrie. The new Smiths Aerospace now has a $2 billion turnover and employs more than 12,000 people. Smiths already holds key positions in the supply chains of all the major military and civil aircraft and engine manufacturers. The company is a major supplier to both Boeing and Airbus as well as business aircraft manufacturers, and it has a key role in providing components for military programmes. Operating in 140 countries for 1,500 customers, Smiths is now in a position to capitalise on the changing operational requirements of the prime contractors. "Airlines and military are focusing more on their core competencies," says Ferrie. "The world is changing. What we are doing is offering to completely manage the equipment for our customers wherever they may be This includes service, repairs and even managing obsolescence. Smiths has successfully carried out this service with the US Navy where it has taken over the whole support chain on the F-18 and Boeing/BAE Systems T-45 Goshawk trainers. "It is outsourcing with a difference. There is risk and responsibility. "We have a financial strength with positive cash generation that is enabling us to be innovative in our approach. It is working. "It is not so much ‘Big is Beautiful' but ‘Big is Essential'. You need the resources and the financial support to be able to participate in the risk sharing ventures that so many programmes are now calling for," Ferrie says. Like its major customer, Boeing, Smiths Aerospace believes the whole sector of aerospace is being redefined. "It's about a lot more than airplanes," says Ferrie. "We are looking at airport applications for our detection and protection systems. This alone gives us great opportunity for growth and offers some potential acquisitions. "There is no question that Smiths will continue along the acquisition trail to further broaden and grow its business. "We are committed to growth both organically and by acquisition. There¹s always a need to clear up but we must not get rid of our capability."
Source: Flight Daily News
