Business Enquirer Issue 110 | Montana Aerospace | February'23

AN AERODYNAMIC STRATEGY FOR GROWTH MONTANA

AEROSPACE

AN AERODYNAMIC STRATEGY FOR GROWTH

Offering a unique, one-stop-shop concept, Montana Aerospace plays an integral role in the supply chain of leading aircraft manufacturers across the world.

MONTANA AEROSPACE

PROJECT DIRECTED BY: CHIARA SALTER

ARTICLE WRITTEN BY: LAURA WATLING

MONTANA AEROSPACE

The business is one of the world’s premier manufacturers of complex lightweight components and structures. Despite its name, Montana Aerospace also supplies its innovations to the e-mobility and energy sectors.

Led by a passionate and experienced leadership team, including co-CEO Kai Arndt, Montana Aerospace has set out its strategy to 2025. There is little doubt that the firm will do anything but soar past expectations.

A One-Stop Shop Concept

Montana Aerospace’s core competencies include the development and manufacturer of highly critical aircraft parts. Using high-tech materials and optimised designs, the business’ product range includes structural components more than 20 metres long for the fuselage, wings and landing gear, as well as components able to function under high thermal and mechanical loads.

Working with a range of metals, including aluminium, titanium, steel and copper, Montana Aerospace also delivers components including e-battery systems, transformers, generators and motors to its EV and energy clients. With 33 different locations across 14 countries in Europe, North and South America and Asia the business is well positioned to serve its OEM customersthe likes of Boeing, Airbus, Bombardier Aerospace and Gulfstream.

“We are a customer-focussed business and so being based in close proximity to our clients is key to the relationship building,” explained Arndt.

In addition, the business boasts seven engineering and development centres.

“Our concept consists of advising, developing, producing and providing service on a local-for-local basis. This helps us to have fast response times, intelligent logistics concepts and costoptimised solutions,” Kai shared.

By offering a one-stop shop service, which has bolstered its ESG initiatives, Montana Aerospace has become the supplier of choice for OEMs.

“By working locally to suppliers and providing everything under one roof, we have been able to reduce typical product delivery distance from 17,000 kilometres to 2,000 kilometres, in one example,” said Arndt, “As well as this meaning we can deliver more quickly than our competitors, it is also reducing our carbon footprint”.

With Montana Aerospace’s efficiencies, it has reduced its carbon footprint by 60%

as well shortening delivery times from 60 weeks to 10-12 weeks.

In recent years, customers have recognised the value of Montana Aerospace and it has received awards from Spirit (Supplier Innovation in 2022), AIrbus (Best Performer Award in 2020), and Boeing (Excellence in Advocacy Award in 2017).

Strategic Vision

Aligning itself with its customer’s own ramp-up initiatives, Montana Aerospace is on target to meet what Kai described as “a very, very aggressive

7,200 QUALIFIED EMPLOYEES

32 LOCATIONS WORLDWIDE

7 ENGINEERING & DEVELOPMENT CENTERS

Titanium Press Picture: Oliver Helbig for Montana Aerospace

growth plan” to double its revenue yearly until 2025.

“Last year we delivered 1.5 million parts to customers and our order book is at capacity for the next year. For 2024 we’re already at about 80-90% booked, and we have about 20-30% availability for 2025. I am pleased to say we are in a very strong position,” shared Kai.

Montana Aerospace have made heavy

MONTANA AEROSPACE

investments in recent years to support its growth, including a third heavy press for aluminium extrusions at its facility in Romania.

“With many businesses consolidating their supply chain, our one-stop shop offering is the perfect opportunity for customers. The investment at our site in Romania has led to some fantastic contracts, including extrusion for Airbus,” said Kai.

More than 1.5 million civil aircraft components are manufactured at Montana Aerospace's worldwide one-stop shops. Pictures: Jan Hosan for Montana Aerospace

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In April 2022, Montana Aerospace acquired aircraft parts manufacturer, Asco. The acquisition has strengthened the business portfolio as well as its geographical footprint.

Although acquisition isn’t currently a priority for Montana Aerospace, the business will continue to explore opportunities in the market, from both a geographical and product perspective.

Naturally, with business growth should come the adoption of more personnel. Kai foresees the need for the business to grow from its existing 7,000 to 10,000 employees.

“Like most industries, post-pandemic we are facing a labour shortage. We already require an additional 500 colleagues in Romania within the next year to meet demand,” shared Kai, “because of the nature of our business it is crucial to have skilled labour. We’re investing a lot of time into training and

development, which will be one of our focusses over the next 12 months”.

The Key to Leadership

When it comes to his colleagues, Kai has the ability to relate, having worked his way from apprentice to management whilst at his previous employer, Airbus.

“I believe the ability to talk to people and to understand their problems is in my DNA, but of course, it does help that I’ve been in their position, too,” said Kai, “having the opportunity at Montana Aerospace to visit our many facilities and meet with our culturally diverse employees has also benefited my leadership style”.

“Of the key competencies, a leader should be able to listen. Then, the challenge is to onboard colleagues into the strategy. However, having a truly diverse leadership team means that our strategy is filled with different perspectives and is essentially bullet proof” he continued.

Pictures: Jan Hosan for Montana Aerospace

Having previously worked for Airbus, a customer of Montana Aerospace, for 30 years, Kai knows the business inside out.

“From my own experience as a customer, I always knew that Montana Aerospace was synonymous with quality and reliability. An offer came to me at the right time, and I was attracted by the business’ concept and vision. I was really enamoured by how the business has created an entrepreneurial

spirit within an industrial environment, it’s really, really cool,” explained Kai.

Combatting the Turbulence Ahead

Despite the outlook for Montana Aerospace clearly being very positive, Kai acknowledged that the business isn’t immune to the challenges faced by most industries.

As well as labour shortages, the global energy prices and material shortage is a

Montana Aerospace designs and manufactures structural components and high-lift devices, including slats (below) for the global aerospace industry.

challenge which Montana Aerospace is prepared to face head on.

“The key is to always have open discussions with customers. We’re in the business of extrusion which is very energy intensive and therefore costly in the current climate. We’ve had some positive conversations with the OEMs to come up with good solutions,” said Kai.

Although the material shortage is still prevalent, Kai believes this isn’t as critical

as during the early part of 2022. What was clearly reflected by Kai during his conversation with Business Enquirer was that Montana Aerospace was stepping into 2023 in a positive position.

“We’re completely in line with our strategy and the results for 2022 year end looks positive. We’re starting on fantastic footing for the year ahead and it’s going to be really exciting to see what happens,” he said.

www.montana-aerospace.com

At 7 locations worldwide, Montana Aerospace experts are researching new designs, materials and material compounds as well as forward looking manufacturing techniques. Pictures: Jan Hosan for Montana Aerospace