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Tuesday, February 19, 2008

Success built on simulation

Montreal: Founded in 1987 by five people who had enjoyed working together on a research project at Concordia University, Mechtronix has evolved into a multi-million-dollar, global manufacturer of high-tech flight simulators for the aviation industry.
During a tour of its Montreal plant this week, Mr. Herve pointed out simulators in various stages of completion destined for Turkey, Israel, El Salvador and China.
Business is booming, thanks to the rapid economic development of countries like China and India and a worldwide shortage of pilots.
It is estimated North America will need twice as many pilots by 2020.
South America will need three times as many, India four times and China five times its current number.
"Pilot poaching" is now a fact of life in the aviation industry, with large international carriers luring away experienced individuals from smaller companies, who are then left to recruit new people.
"A huge number of training organizations are being set up around the world," Mr. Herve, 44, said.
Many of those cent res are Mechtronix clients, as are the Tier 2 and 3 airlines that are compelled to do much more in-house training because of the high cost of doing it externally and pilot turnover rates that average 30% annually.
Because flight simulators are usually delivered six to 18 months after an order is placed, Mr. Herve already has a good idea what the 2008-09 numbers will be, and they're consistent with recent rates of growth. This summer, the company will expand its local base by constructing a second building on property adjacent to the Montreal premises it has occupied since 1997.
But that's old news for Mr. Herve. He is already looking ahead two years. By then, he expects the company to open its first plant outside Canada.
18/02/08 Paul Delean/Canwest News Service/Financial Post, Canada

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