You've been at Duncan Aviation for almost three decades now. What are the advantages of working at a family-owned business that has kept you at Duncan Aviation for so long?
Before joining Duncan Aviation almost 31 years ago, I worked as a certified public accountant and then as finance director for a large corporation. The main reason I joined Duncan Aviation was because of the Duncan family’s focus on family and its team members. Robert’s father, Donald Duncan, founded the company in 1956 as an aircraft sales organization, but Robert transformed it into an MRO business during the financial hardships of the late '70s and early '80s, out of necessity.
While many companies have a positive atmosphere, I’ve found that the focus is often heavily on financial results. At Duncan Aviation, team members come first. For example, during Covid, we focused on keeping our team safe and fully employed, even when business dropped significantly. Because we retained all of our team members, the Company was able to realize a V-shaped recovery, and we've grown significantly since 2019. Employees and customers appreciate our focus on doing the right thing and not just focusing on financial results.
Duncan Aviation has weathered the high interest rates of the 70s and 80s, the 2008 recession, and now the Covid pandemic. How does the pandemic compare to other existentially challenging times?
From a business impact perspective, the 2009-2010 recession was deeper and lasted longer, so it was more difficult. The pandemic, however, was challenging due to the sheer unknowns and the need to keep team members safe and healthy. The concerns about Covid transmission and the necessity for masks, which caused operational issues with safety glasses and working in close proximity, made working conditions difficult, especially working in hot hangars.
During the pandemic, most of our team members had to work on-site since we obviously couldn't work on aircraft remotely. Thus, it made for a difficult work environment. While the 2010 recession was tougher from a financial standpoint, the pandemic required us to focus intensely on health and safety, which presented unique challenges. Yet, each crisis, including the two previous recessions, provided growth opportunities, leading to significant expansions.
The market is seeing increased demand for larger wide-body aircraft. How have the types of aircraft you predominantly perform MRO on evolved?
Our business has shifted over the years from predominantly small Cessnas and Learjets to larger Falcon, Bombardier, and Gulfstream aircraft. This change reflects the growing need for larger aircraft as businesses have expanded globally. Customers now need aircraft capable of longer distances without stops, leading to increased demand for ultra-large aircraft. We've adapted by building larger hangars in Battle Creek, Lincoln, and Provo to accommodate this growth.
The industry has seen a significant increase in large aircraft, requiring more hangar space and of course more personnel. We recognized this trend and expanded our facilities accordingly. As a result, we've seen substantial growth in both domestic and international markets, with 15-20% of our business now coming from outside the U.S. We now see more business from Europe, South Africa, South America, Canada, and Mexico, a significant change from when I first started here. This shift started around 2010 when we focused on larger aircraft, enabling us to attract international clients with larger work scopes.
The last few years have seen huge strides in technological innovation. How is Duncan Aviation leveraging advancements to improve its operations?
We've seen substantial innovations in engine efficiency and safety over the years. Engine manufacturers have greatly improved fuel efficiency and avionics advancements have enhanced aircraft safety. Future innovations, such as electrical vertical takeoff and landing (eVTOL)and hydrogen fuel, promise further improvements. The aviation industry aims to achieve zero carbon emissions by 2050, and we're actively involved in initiatives like Sustainable Aviation Fuel (SAF).
We're also exploring AI and robotics to improve efficiency and safety. AI helps us use data more effectively, while robotics could potentially assist with tasks like sanding and painting. Recent advancements in interior work, such as hydro dipping and vinyl wrapping, offer more efficient and cost-effective solutions. These innovations are set to make significant improvements in the industry over the next few years.
Your facilities are located in traditional ‘flyover states’ like Michigan, Nebraska, and Utah. How do you plan to address the challenges of recruitment and retention?
Recruitment and retention are significant challenges. We've focused on hiring locally, which has helped with retention. Anticipating a shrinking labor market due to retiring baby boomers, we started an apprentice program to train people with little to no aviation experience which allows team members to earn their A&P certificate while getting paid. We've expanded this approach to include structures, interiors, and avionics installation training. Despite the challenges, we've grown our workforce significantly, from under 2,400 team members in 2019 to nearly 3,000 in 2024.
We have also partnered with local high schools to promote aviation careers. In Lincoln, we worked with the Career Academy to develop a program at North Star High School, funding a new wing. This program is attracting more students than it can currently accommodate. We are also expanding similar initiatives in Battle Creek and Provo to develop a local talent pipeline and promote aviation as a viable and exciting career choice.
