MANUFACTURING LIVE: ONTIC IS GIVING AEROPLANES A LONGER LEASE OF LIFE

Ontic is a multi-million dollar aerospace original equipment manufacturer that helps keep aircraft in the air safely, for longer. During The Business Magazine’s latest Manufacturing Live event, delegates learned about the business, the availability of government support for SMEs in the sector and toured Ontic’s new Cheltenham factory

By Nicky Godding, Editor

Every month, somewhere in the world, hundreds of new aeroplanes will roll o production lines. Each model can stay in production for several decades but how are they kept in peak condition when manufacturers begin to focus on new technologies for the next generation of aircraft?

Does that mean reliable and wellmaintained aircraft must be retired because the original manufacturer no longer makes replacement parts? For instance, the classic Boeing 777 was designed in the early 1990s. It delivered its first aeroplane to United Airlines in 1995 and it’s still in production today in Seattle. As it will also stay in production for another few years, it’s feasible that early 1990s technology is going to be flying passengers and cargo around the world into the 2060s.

Speaking at the latest Manufacturing

Live event, organised by The Business Magazine and hosted at Ontic in Cheltenham, Ontic’s Director of Customer Engagement, Matthew Pritchard, outlined the work his company does with global aeroplane manufacturers in both the civil and defence sectors.

“It’s not just civil aerospace that needs to be kept flying, as governments continue to invest in new defence capability, they also continuously reinvest and repurpose old aircraft,” he said.

“Right now, the B52, made famous during the Vietnam era is going through a “life extension” programme which will see it fly in active service for another 30 years. There are serial numbers which might celebrate their 100th birthday by the time the equipment is taken out of service, and several generations of aircrew will have flown the same aeroplane in numerous theatres.”

UK is the second largest aerospace and defence industry in the West

The UK has the second largest space and defence industry in the West, and it employs around a quarter of a million people. The country is a major source of innovative technology and most of that is exported.

The South West is a major aerospace hub and home to companies with rich heritage such as GE Aerospace, BAE Systems, Rolls Royce, Airbus and Safran.

Speaking to a packed Manufacturing Live event, which attracted more than 60 representatives from around 40 companies of all sizes from the manufacturing sector, Matthew presented his company’s substantial credentials.

“Ontic is a fast-growing, medium-sized Tier 1 original equipment manufacturer (OEM). We have seven facilities around the world generating around $500 million in revenues and employing around 1,200 people. Around a third of this activity is here in the UK, and much of that happens in our two facilities in Cheltenham.”

What makes Ontic di erent to most aerospace OEMs, is what it does with its capital.

“Most aerospace and defence companies deploy their capital in research and development, inventing technologies for future aeroplanes – making them cleaner, more e cient, more mission-capable –whatever is needed.” said Matthew.

“We deploy our capital to buy equipment that has already been designed. We have typically doubled in size each three to four years and had another record-breaking year last year in 2022 both in terms of sales and growth.

“There aren’t many other organisations that do what we do and get similar levels of success. There are lots of Tier 1 OEMs designing and developing equipment, but there isn’t really another company which is investing in sustaining IP as we do.”

But such a strategy wasn’t entirely without risks, he said. “If you invested in developing new technology for A380 Airbus technology, you would have been very disappointed when the manufacturer stopped making it after just 254 aeroplanes.

“While we help other OEMs liberate their capital and free up valuable capacity, it’s probably not a surprise to know that most OEMs sell or licence IP that disproportionately consumes their focus, or they can’t produce it e ciently anymore. Supply chains become more challenging over time, or engineering issues such as obsolescence have emerged.