Jerry Mullins has been leading Enstrom Helicopter as president and CEO since early 2004. Rotor & Wing visited with him on the eve of Heli-Expo 2008 to discuss the Menominee, Mich.-based airframe manufacturer’s view of the market today and the opportunities and challenges ahead.
What opportunities does today's market present for Enstrom?
We’ve had a dedicated police demonstrator, the 480B Guardian, flying all over the United States for the last two years. Just before the show, we demo’d the 480B in Fayetteville, N.C. and throughout North and South Carolina and in Florida. We’ve delivered two police-configured ships to Mexico in the last couple of months.
The reason we see the police market as an opportunity is that Bell has quit manufacturing the 206B. That was our prime competitor. Some of the police markets that were using the 206B are now going to be looking at Enstrom, Schweizer, Eurocopter. The fact that we’ve got the same engine and nearly the same performance as the 206B, I think, is going to open up some doors for us. We’ve got some proven time here in the United States. Out in Pasadena, Calif. we have a 480B that’s been operating for over a year very successfully. Also, the Minnesota Department of Natural Resources has been operating a 480B.
We’re also with the 480B working the military training market. We’ve been pursuing heavily military training. These countries are getting a bunch of military aircraft. They need pilots. Thailand and South Korea are just a couple that we’ve been working on for years. Those things take time. We’re hoping to really make a dent in the military training market. That seems to be our niche, also, as well as the police market.
The other part is individual aircraft sales, VIP. It’s an economical aircraft to own and operate and the fact the 206 is not out there gives us an opportunity to penetrate that market.
What is the company doing to take advantage of those opportunities?
What we’re doing is not only expanding our dealerships but actually evaluating and replacing some of our existing dealers.
Currently, we have 23 dealers throughout the world and 12 representatives throughout the world. So basically 35 reps throughout the world and we’re looking at 12 others that are under review right now. To get to 47 is our target.
That’s our clear way of selling, being a small company. Getting a good, quality dealer in the country is the key. The guy that has the contacts, that’s the key to our success. We can’t market all these countries.
What's the biggest challenge you face as a manufacturer and how are you addressing it?
Ever since I’ve been here, the thing I hear over and over again, we put a pilot in a 480B and they’re just blown away. They love it because of tail-rotor effectiveness and the smoothness of the ride and all the other features. Typically, the response we get when we approach them the first time is, “Well, I’ve never really been in an Enstrom.”
So our biggest challenge is to get pilots in our aircraft. Once we get to that point, the sale is made as far as the pilot goes, with the performance of the aircraft. But we’re not a big Bell, where we can go out and spend millions of dollars in marketing, advertising, demonstrators, etc., etc. That makes it difficult. How can I get exposure without a lot of money to get exposure?
So what we’re trying to do—and we’ve got some dealers that are helping us—is doing a co-op advertising program where we pay part of it and the dealer pays part of it, depending on the country, and even doing that in the United States, so we can share marketing costs.
How did Enstrom do in 2007, and what are your plans for the coming year?
Because sales didn’t happen early in the year in 2007, it was slow. We slowed down early in the year, and we weren’t able to recover. We got sales to 27, and our projection had been 26. But our deliveries were down to 17.
Our forecast is to produce 28 helicopters this year—20 turbines and eight pistons. We already got six under a contract with the Peruvian navy for F28F trainers, so pistons are pretty well eaten up for the year. A couple of other individual sales will take the other two.
Of the 117 turbines we’ve delivered, we’ve got 25 of them in the police market. We really feel like that’s going to be a good market once we get the exposure there. We have some significant multi-ship sales being worked in 2008, which could have a tremendous impact on the company.
What is Enstrom highlighting at Heli-Expo?
At the show, we’re going to be delivering a 480B to Plaquemines Parish, a police department out of Louisiana. It’s a small community on the Gulf of Mexico at the mouth of the Mississippi.
It’s got the new Chelton Flight Systems electronic flight instrumentation (EFIS) cockpit in it. It’s the first one we’ve delivered with a new EFIS cockpit.
We also have the Chelton EFIS in our law enforcement demonstrator, which will also be at the show. It’s a great system. Everybody that looks at it loves it. It just makes the workload so much easier.
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