Forging links for a competitive future

Charlie Slagle, president & CEO Hoffmann Group USA looks at how today’s companies are managing the materials, tools, systems and service demands of a burgeoning aerospace industry.

There is no doubt that the aerospace industry is booming right now. Defence spending is up in most countries, the demand for planes is strong and the privatisation of space exploration is bringing new players into the space industry all the time. With this demand comes a greater need for materials, tools, systems and services. Managing this demand can often be stressful.

If managing increased demand wasn’t enough to keep you up at night, the nuances of global politics as it relates to the sourcing of materials and products surely will – because the cost of doing business is increasing daily. Whenever costs go up, the bottom line is impacted, and that sometimes leads to workarounds and shortcuts. However tempting it might be to go with a cheaper, less-proven product, supplier or technology, the risks just aren’t worth it. After all, people’s lives are at stake.

Premium products and services typically come at a greater expense because there is more that goes into those products, but those costs are worth it in the long run. Considerations that are influencing the market also include: Hard costs, which cannot be avoided. So, with this in mind, what should aerospace industry suppliers be focusing on in order to remain competitive, considering that product and service shortcuts are far too risky?

Here are five ways suppliers can stay competitive, quality-driven and relevant:

• Negotiate pricing rather than risk high product standards: Whenever the going gets tough, never outsource to cheaper, less reliable vendors. Hoffmann Group has worked hard to maintain the integrity of our products by managing relationships with our long-time suppliers. Quality is never compromised. Whenever there is a market turn, we renegotiate with our suppliers in order to pass less of a burden onto our customers. This helps us maintain our high-quality standards, and the integrity of our products.


• Manage your supply chain: As the world has gotten smaller and supply chains have gotten larger, the need for companies to follow best practices in global supply chain management has intensified. If you service global customers, you should consider relocating to their locations. It’s great for your customers, because they get your products with a much shorter supply chain. Technology is also a key enabler in the transformation from domestic to global supply chains, particularly to gain visibility to all supply chain partners. Reliability of supply is crucial, and one of the main facilitators of our reliability is the company’s ERP system. Everything is connected, all of Hoffmann’s locations are connected. This expedites the decision-making process and helps us manage our global supply quickly and easily.


• Evaluate new technologies: This is a tough one if you have invested years into manufacturing your products with a specific material, in a specific way. However, if you’re not constantly evaluating materials, technologies and trends, you risk becoming obsolete. Hoffmann Group is currently looking into 3D printing/additive manufacturing for certain parts of our product manufacturing process. Stronger, more ergonomic, user-friendly materials are something we’re always seeking and researching.


• Stay ahead of regulatory changes: Global organisations are struggling to keep pace with regulatory change on all fronts. Grappling with the sheer volume and the complexity of these changes can be a battle, and not everyone has the need for a full-time regulatory professional. However, getting plugged into groups like The International Coordinating Council of Aerospace Industries Associations can be very beneficial. Hoffmann Group USA is CTPAT and AEO Certified.


• Never forget, this is still a people business: Marketing, sales, automation and managing supply chains are important parts of our operations, but people are still the primary base of our business.

It’s more important to build meaningful relationships with customers than it is to just sell them something. Powerful customer relationships are essential to business success, but they aren’t built overnight. Just like personal relationships, it’s important to cultivate and nurture customer relationships. When organisations develop strong relationships with their customers, it can make all the difference when you are faced with growing competition or scrutiny.

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