What was it that motivated you to leave Airbus after 30 years and join Montana Aerospace three years ago?
The main motivation was to be part of Montana Aerospace’s growth story. I liked the business model, which is quite unique compared to competitors. We offer a one-stop-shop concept, controlling everything from raw material billeting to extrusions, machining, surface treatment, and smaller assemblies, all in-house. This gives us a competitive edge by delivering every product from a single source. Despite challenges in the current build rates from major OEMs, Montana Aerospace’s growth outlook remains strong.
Last year, we were named the fastest-growing company in aerostructures, and I wanted to contribute to this exciting opportunity. Even though leaving Airbus after over 30 years was a big step, I still hold great affection for the company—it feels like home when I visit Toulouse or Hamburg. However, Montana Aerospace provides a dynamic, entrepreneurial environment, where we have the freedom to decide our next steps. That flexibility, combined with the growth potential, made it the right choice for me.
Can you walk us through the portfolio of components Montana Aerospace designs and produces for the aerospace sector?
A good example is the seat rail in an aircraft. Everyone sees it when they board—the seats are attached to those rails. Traditionally, this part was made by five or six different companies: one for the material, another for extrusion, and so on, until the final product was delivered. This process could take close to a year due to all the steps involved and the distance parts had to travel between suppliers.
By doing everything in-house, we’ve cut lead times by 80–90% and reduced the environmental impact by eliminating the need to transport parts over long distances. This vertical integration is a significant contribution to sustainability, and we apply this approach to most of the parts we produce for aircraft, from structural components to smaller assemblies. It’s one of the reasons we’ve gained significant market share over the last two years, and we expect that growth to continue.
What was the motivation behind divesting Montana Aerospace’s e-mobility segment this summer and focusing on becoming a more pure-play aerostructures company?
It’s a fair question. While some might argue that diversification is key, especially when build rates are lower than anticipated by the OEMs, we see more value in focusing on our unique selling proposition (USP) in aerostructures. By concentrating our efforts, we strengthen our position with OEMs and other sectors like space. Streamlining makes us more flexible and agile, which is crucial in our collaboration with clients. We didn’t have to sell the e-mobility segment, but the opportunity in the market was there, and we found a suitable buyer. We’re in the closing process now, and once that wraps up, we’ll be in a stronger position.
This move also enables us to consider other parts of our portfolio for divestment if it furthers our aerospace focus. It’s all about evaluating the opportunities and deciding what best serves our long-term goals. Streamlining helps us stay nimble and prepared for any potential future market shifts.
How are you adapting your customer base as you consolidate your aerospace portion and enter new emerging markets?
We deliver parts to all the major aircraft manufacturers, but space is a market where we see significant potential. We weren’t initially focused on it, but after a visit from a major space customer, we secured our first order, and it’s become our fastest-growing business. The technologies used in space are similar to what we do in aerospace, and the agility required—redesigns every six months, compared to several years for a new Aircraft—is something we’re well positioned to handle.
While we haven’t pursued the eVTOL market, we’re excited about the growth in the satellite and space rocket sectors. Companies like SpaceX and Amazon are ramping up production, and we’re winning market share in this sector by offering reliable, vertically integrated solutions.
What are the main pain points Montana Aerospace is grappling with in 2024?
With the Boeing workforce strike, we expect short-term challenges for the whole industry regarding working capital, and we all must expect further disruptions in the supply chain. We will get through this challenging time, but the sooner the strikes end, the better.
This is an industry with one of the most promising outlooks. The OEMs have 13,000 aircraft on order books, and we're looking at 40,000 new aircraft in the next 20-25 years. Short-term, we are all dealing with the challenges of the OEM build rates, but even with Airbus delivering 770 units, growth remains strong. The biggest pain point for me is the scattered supply chain. There are thousands of suppliers, having issues with not delivering or meeting the expected quality. On top of that, it is crucial how realistically the supply chain assesses the growth (path) of the OEMs. If we, as the suppliers, are not all aligned in our expectations, we will continuously face delivery issues.
