B&B Airparts lands long-term contract with Honda Aircraft

Jan. 19--B&B Airparts is poised for substantial growth because of a long-term supply agreement with Honda Aircraft, the car giant's aircraft division.

B&B, located near Wichita Mid-Continent Airport, will build major components for the new HondaJet, a light business aircraft.

It's a significant win for the company, which has worked with Honda Aircraft since 2009 making small parts in small quantities, said B&B Airparts president Jerry Smith. He expects the work to require a large expansion of the company's facility, at 1831 S. Hoover Court.

"We're experiencing explosive growth," Smith said. "We know we're going to have facility expansion. To what level, we haven't locked that in yet."

The company is also considering future expansion near Honda Aircraft's large facilities in Greensboro, N.C., to support Honda, Smith said. That would follow any expansion in Wichita, he said.

In the past six months, B&B has added more than 30 employees. In the past three months, it has invested more than $1?million in equipment and facility improvements.

Today, Hawker Beechcraft is B&B's largest customer; Honda Aircraft is second. But Smith expects those roles to reverse this year as Honda work expands.

B&B has worked on a number of projects with Honda Aircraft on quick turnaround items, said Mark Lee, Honda Aircraft's division director for marketing and corporate communications.

"Anytime you look at building an airplane, the supply chain network is an incredibly important set of decisions," Lee said.

Honda went through a selection process "and concluded that they would be a great supplier for us," he said of B&B.

As part of the new contract, B&B will build metal parts for the cockpit instrument panel structure, nose bay structure assemblies, wing and all the metal details for the composite fuselage.

Honda Aircraft suppliers are ramping up as the plane manufacturer transitions into the production phase of the jet program, Lee said.

First deliveries and entry-into-service of the $4.5 million business jet, which is in flight test, are expected in 2013. Full production is expected in approximately 2014, Lee said.

Honda eventually plans to deliver between 80 and 100 planes per year, he said.

B&B was founded in 1998 and is co-owned by Smith and Dan Barnard, its CEO. It specializes in manufacturing aircraft sheet metal and machined components and assemblies.

The supplier's niche is in producing parts 4 feet in size and smaller.

"There's just a lot of parts on an aircraft 4 foot and under," Smith said.

B&B Aircraft went through the downturns following the Sept. 11 terrorist attacks and, more recently, endured the latest recession and downturn in the aviation industry. During the recession, B&B imposed furloughs and three- and four-day work weeks.

That's changed.

B&B now employs 83, a number significantly above pre-recession levels.

In 2005, B&B had no CNC machines in operation. Today, it has 13 with plans to add 10 to 15 more. The computerized machines are used to mill metal parts.

Last year, sales rose 20 percent over 2010.

"It's because of our employees," said T.J. Voran, B&B manager of sales.

A promising future

The HondaJet was designed by Michimasa Fujino, now president and CEO of Honda Aircraft Co., a division of Honda Motor Co.

Its closest competitor will be Cessna Aircraft's new Citation M2, a business jet Cessna unveiled in October, Lee said. It fits between Brazil-based Embraer's Phenom 100 and Phenom 300 jets.

Honda Aircraft debuted the HondaJet in 2005. The following year, it began taking orders at the National Business Aviation Association's annual convention. It took more than 100 orders in three days at the show.

The company declined to say how many orders are currently on the books.

"We're pleased with our order book," Lee said. "It's in good shape."

Honda Aircraft built its world headquarters, research and development facility, and manufacturing plant at the Piedmont Triad International Airport in Greensboro.

"If you look at major components for the aircraft, wing, fuselage, avionics, ... it's overwhelmingly U.S.-North American content," he said.

Honda continues to grow. The company plans to break ground on a new maintenance and repair facility in Greensboro in the second quarter of this year.

B&B's work will also grow as Honda grows in the market. Eventually, Honda Aircraft expects to expand its product offerings.

"There's no better testament to that than by looking at our facility here," Lee said. "This is a major investment."

Voran, B&B sales manager, called Honda a "tremendous company to work with."

"The future for this aircraft is excellent," he said. "And this is a great contract for both our company and the community."

Reach Molly McMillin at 316-269-6708 or [email protected].

Copyright 2012 - The Wichita Eagle, Kan.