By KELLY LOUISEIZE
Successful negotiations with foreign distributors will land a northwestern helicopter kit company in the black with a record year in 2005.
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Ear Falls-based Canadian Home Rotors is riding an updraft of orders from across North, South and Central America. |
After suffering like many aircraft manufacturing businesses after the events of Sept. 11, 2001, Canadian Home Rotors (CHR) Inc., a build-your-own helicopter kit business, is experiencing a turnaround year.
"If this even gets halfway serious, this will be an excellent recovery year for us," says Gary Assels, general manager and shareholder.
In fact, it will be the best year any of the six shareholders have experienced, since opening 26 years ago in Ear Falls. The company has historically
never sold more than about 20 helicopter kits a year, but there is talk of doubling that number in 2005.
At this April's Florida air show, Assels sold three SAFARI helicopter kits averaging $85,000 US a piece. Three multiple orders are being negotiated and 12 single orders are in discussion. Foreign distributors have approached Assels to ask if they could become the link between the consumer and CHR.
From South and Central America as well as the Caribbean, China, and Quebec province, businesses want to buy the kit, assemble it, provide flight training and sell it as one value-added product. If this happens, multiple orders will be flowing in. However exciting the situation is, Assels is not
getting carried away with emotion. He wants to see money in the bank by fall before any parties are planned.
The world markets can absorb 200 to 300 helicopter kits a year, he says.
China has a strong demand for aviation technology and CHR intends to stay ahead of the reverse engineering challenges from potential competitors by constantly improving their product.
The shareholders are not ostentatious. They don't drive flashy luxury sedans, and the offices are far from plush. But lean as they are, the terrorist
attacks of 2001 hurt.
Airports and airline security became tighter and passenger numbers declined. Layoffs were inevitable.
"Eventually it caught us too, but we just keep things skinny," he says.
International operation
The Ear Falls plant, located approximately 170 kilometres northeast of Kenora, consistently staffs three to five employees who concentrate on equipment welding. Computer Numerically Controlled milling machines run by two employees manufacture smaller parts from Dauphin, Manitoba. Their Florida warehouse in Marianna, which employs another four to eight employees, acts as an inventory base where flying occurs year-round.
"If I need to expand again that is probably one of the places of consideration."
Looking for that eye in the sky
Purchasers of the SAFARI kit are usually retired pilots, mechanics or ranchers looking to keep a closer eye on their property or livestock.
CHR experts will examine the assembly work of the independent buyers to ensure its safety.
In 1979, president Murray Sweet, born and raised in Ear Falls, decided make a helicopter after he saw how much fun his brother (a trained pilot) was having flying them.
"I don't know if I could fly them but I bet you I could make them," Assels recalls Sweet saying.
He bought his first kit from International Helicopters of Mayville, New York, shortly before the company closed its doors. That left approximately 150 units in North America without available parts. A machinist and welder by trade, Sweet took his kit and the samples to other kit owners who required parts. After 12 years, he and another welding friend decided to design and build a full helicopter over the Christmas holidays.
They changed the design and opened a new company in Ear Falls. During an air show the helicopter was dubbed the "Baby Bell," but it was soon renamed SAFARI after Bell Helicopter Corp. decided they wanted to be paid for the use of the name.
Approximately 95 per cent of the their parts and kits are exported to more than 20 countries.
