Message from Scott Selle
Hello from Fairchild Controls in Frederick, Maryland.
In our company we participate in an aerospace and defense industry that is characterized by extraordinary challenges as well as exceptional opportunities. For instance, we all recognize the importance of delivering quality products and services. For our customers, quality is not just a competitive differentiator, but rather a “ticket to enter” the competition. It’s an absolute necessity. At Fairchild Controls, we devote significant resources towards ensuring our designs provide the quality customers expect. We also use rigorous process control with carefully documented procedures, detailed inspection plans and robust qualifications to ensure the production output of those designs is consistent. In simple terms I think of it like this: design quality is demonstrating the ability to clear the bar the first time and production process control ensures we make it over every time.
We also face a challenge from long lead times and relatively slow cycle times. This condition is too prevalent in our industry. It’s caused by a combination of factors, including the complexity of aerospace technology; huge investment requirements for new programs; increasing global competition for raw materials; and the millions of intricate individual steps necessary to design, manufacture, assemble and test a finished product such as an aircraft or military ground vehicle. These long lead times impact our industry in several ways. On a macro scale, we saw the problems experienced after September 11th and the global business downturn in 2001 when our industry was penalized for its difficulty in retooling, refreshing and rescheduling the products and services needed to meet the reality of a changing market for both the flying public and industry partners. On a smaller scale, we experience lead time challenges every day in working to overhaul and repair components for airlines with the fastest possible turn-around-times. At Fairchild Controls, we’ve learned from this, and are taking steps to improve the speed of all of our processes, whether they are administrative, such as reviewing a contract proposal, or operational, such as changing over a machining center setup.
Many other challenges exist, as well. Regardless if it is a business traveler purchasing a single airline ticket or a large defense procurement competition, aerospace and aviation industry customers at all points in the value chain are demanding lower costs and greater efficiency.
In this challenging environment, we at Fairchild Controls see great opportunities. Both large commercial air transport manufacturers forecast orders for as many as 28,000 new air airplane deliveries over the next twenty years. Demand for small jets is increasing as well, and the emergence of very light jets flying routes best described as “air taxi service” will create a new model for revenues. Military budgets may not grow as much, but the changing mission our allied forces face is creating the need for new war fighter capabilities. For instance, the US Congressional Budget Office predicts that the Army’s annual spending on helicopter programs will increase as much as 50% during the next twenty years.
It is for these reasons, and because of the passion we have for our business, that we are preparing for the future with great optimism. Throughout EADS Fairchild Controls, our employees look forward to meeting and then exceeding the expectations of our customers because of the tremendous opportunities this will create for our organization
Sincerely,
Scott Selle
President
Although Fairchild Controls believes the information presented in this article is accurate and reliable, the opinions, projections and conclusions drawn may be outdated or incorrect. This article should not be used as a sole basis for current and future decisions, including investment decisions. Fairchild Controls has no obligation to update the historical information contained in archived documents, makes no representation of expected future financial performance, and accepts no liability for damages based on this information.