As the US aviation sector continues to rebound from the effects of COVID-19, APOC has expanded its local services for The Americas region and opened its new US headquarters in downtown Miami. According to SVP Business Development, Kevin Wall, APOC views the US as a strategic market and is shaping the business to align with future growth in the region. “Being close to your customer base and forging productive relationships with business partners are key elements for success. While we are in a truly global industry, there is no substitute for an experienced and professional local team that is willing and able to help.
As APOC’s Senior Vice President of Business Development, Wall will oversee both the organic and inorganic growth of APOC throughout North and Latin America in particular. APOC has developed not only its teardown business for A320/B737 but has also built an ever-growing presence in engine leasing & trading as well as landing gear leasing & trading. “We see great potential to expand this business,” he says. “We have already performed several teardowns in the region and see big potential in developing this further. If we source candidate aircraft in the US and ultimately sell the material here, it makes a lot of sense to tear down here too.”
APOC is currently exploring many options through cooperation, joint venture, investment or acquisition, and the reaction from the market to APOC’s presence in the US has been very encouraging. Doing business is simpler with a local presence and flexible local solutions can be devised for customers. “We are talking to end users, repair shops, and logistics providers to provide end-to-end support,” affirms Wall.
APOC’s Miami warehouse which opened last year is still in its early stages. “We have recognized the need to have stock locally as we strive to be a valued service provider,” says Wall. “Fast moving parts will be stored in our MIA facility and as we adapt to the needs of our customers, we will increase capacity in MIA. We expect rapid growth leading to a quadrupling of inventory held locally within the next 6 months.”
Wall goes on to explain the reasons behind APOC’s decision to choose Miami as the first step in its global footprint expansion program. “The US market is huge for us. As a young company we traditionally based our stock locally in Europe and traded globally from there. That doesn’t work in a global environment anymore. We see the need to expand and be the guy next door. We have chosen Miami as our Americas hub for good reason. Access to the Latin American market is key and Miami has been long recognized as the gateway to Latin America. By partnering with logistics experts to minimize cost and lead time we aim to be there for our Latin American friends. The post-COVID era recovery in many Latin American countries, lags behind other regions. That’s where APOC with its access to used serviceable material (USM) can make a difference. Cash is king in the current aviation environment and operators are seeing USM as an efficient way to stretch maintenance budgets. For many, large inventories are a thing of the past. You buy it only when you need it. That’s when you need a solid partner, like APOC.”
Further investment in the US is highly likely for APOC. The Company’s business plan will see revenue top US $100 million in the next few years. For that to happen additional resources in terms of talented people, and further targeted locations will be explored.
“Teamwork & technology is what makes APOC different” says CEO, Max Lutje Wooldrik. “Top quality innovative solutions providing cost-effective used serviceable material where and when you need it. We are exhibiting at MRO Dallas, for the first time and visiting delegates will be surprised at how far we’ve come and where we’re headed. I’d like to think that our unique stand at the show will already have you thinking ‘Wow, these guys are on another level’.”
According to Wooldrik analysts predict the MRO market will grow from some US$13 billion to over US$18 billion by 2028. “Technology and (digital) innovation will be the drivers of this market growth. Data analytics and AI will become commonplace. Supply chains however will struggle to keep up. Even the OEMs will suffer from material shortages. Manpower, which has been neglected by lack of training and investment in young talent, will become even more critical. The COVID lockdown saw many young people choose a career outside aviation and thousands of mature and experienced people took early retirement. There are interesting times ahead for aviation and MRO alike. As the industry grows and struggles to keep up with the pace of growth post-COVID, the value of used serviceable material (USM) to the overall supply chain cannot be underestimated. At APOC we understand that.”