Canadian Companies Working Together: AHI and P&WC
Based in Hemmingford, Quebec, Aérospatiale Hemmingford Inc. (AHI) is a company with two main product lines: bleed valve assembly and fuel adaptors. What makes this small 80 person company unique is that it has only one client – Pratt & Whitney Canada (P&WC). AHI applies its specialization to the P&WC family of engines such as the PT6, JT15D, PW100, PW300 and PW500.
In 2003, AHI's objective was to progress to becoming a Tier III advanced integrator in the aerospace industry. A strategic investment by Technology Partnerships Canada (TPC) helped AHI realize this vision.
When TPC invested in AHI, P&WC agreed to act as a mentor. The goal of the mentoring relationship was to encourage and develop positive indications that AHI would succeed in implementing the business processes necessary for a Tier III integrator. The timing of TPC's contribution was ideal. During this period, P&WC had decided to significantly reduce its number of suppliers, yet due to the mentoring relationship, AHI maintained its supplier status. The cooperation between AHI and P&WC has been beneficial to both parties.
As a result of TPC's involvement, since December 2003 AHI has been responsible for procuring all cast and forged raw materials and primary parts specifically designed and required for all assemblies produced in-house for P&WC.
TPC's repayable contribution of $330,750 significantly improved the quality of manufacturing and administrative processes at AHI. The total project cost was $735,000. Funded through TPC under the Aerospace and Defence Supplier Development Initiative, this investment was part of a program that assisted small and medium-sized enterprises in the aerospace and defence industry to develop and incorporate world-class business and manufacturing practices and technologies.
With TPC's help, AHI improved its technical and business capabilities to meet P&WC's growing service and product requirements. AHI has also increased its overall competitiveness and long-term sustainability in the aerospace sector.
AHI's sales for 2005 were 2.2 times higher than the 2002 sales and this increase in sales continues. In addition, the company's employment level has more than doubled from that time until 2008.
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