Tulsa-based aerospace company Limco Airepair lands $8.5M Army contract

A Tulsa-based aerospace manufacturer and aircraft repair company won a five-year, $8.5 million contract this month with the U.S. Army to build fluid electrical coolers.

Limco Airepair Inc. is making the parts, used on the Patriot missile system based at the Defense Logistics Agency Aviation at Redstone Arsenal, Ala.

The contract is another milestone in a turnaround at Limco.

Just three years ago, the company reported a $2.5 million loss. By the end of 2010, however, the company earned $3.5 million.

The growth is a sign of the cultural change at the plant, said Paul Hall, Limco president. Hall arrived in December 2009.

“Our performance was not so good,” Hall said.

Hall, who calls himself the operations guy, started examining, then tweaking work strategies at the plant. Limco splits its work between repairs and making parts, serving both military and civilian aviation companies.

Hall initiated an informal training regimen, cutting the amount of work tossed in the trash from 37 percent to the low single digits. The training has paid off as Limco is looking at a 14.5-percent growth this year – just 0.5 percent below its goal of 15 percent. Hall said company executives anticipate revenues reaching $31.5 million, up from $27.5 million a year ago.

Employment is up 30 percent to 175 people. The turnover rate at the facility has dropped from 40 percent to 5 percent, said Lynn Grimm, Limco account manager for the military.

An example of the turnaround in the company’s reputation is the Patriot missile program, Grimm said.

“We had three smaller contracts with a similar part number. Typically these are a year long and you plan to produce one to two units a month. We finished that contract in six to nine months ahead of schedule,” Grimm said.

The military praised the quality, Grimm said.

Once a company earns the trust of the military, the military tends to reward that company with more work, Hall said.

“Once you perform, you earn ‘favored nation’ status and customers want to talk to you,” Hall said. “A couple of years ago that was not happening.”

In fact, the only talking was one way: During regular conference calls Limco had to listen to its airline and military customers complain about the poor product.

“Those calls stopped about 11 months ago,” Hall said.

On-time performance and quality of work have grown consistently, he said.

“We produce twice the amount of product in half the time,” Hall said. “Most of these (military) contracts are not huge in nature. But they add to the growth and stability. They build on foundation. The first thing you know, you look back 20 years and say, ‘We have not grown much.’ But you have been hugely successfully because of the mindset of the people.”

Limco seeks methodical growth, Hall said.

“We are doing the right thing and the work is coming because of that,” he said.