Sid Price
A new headquarters is keeping sales aloft at Aerospace Filtration Systems Inc.
The St. Charles-based firm moved into a new, 22,000-square-foot facility at Missouri Research Park in January. The building adjoins Westar Aerospace & Defense Group, the parent company of Aerospace Filtration Systems (AFS).
"The new facility is helpful. We really needed the space and moved at the right time," said Michael Scimone, president of AFS. "It has increased our production capacity, and Westar being next door is very convenient since they provide our accounting and finance operations."
AFS makes filter systems for military helicopters, including the Bell OH-58 Kiowa Warrior, Boeing AH-64 Apache and Sikorsky UH-60 Blackhawk, and for commercial helicopters including the MD-500 and Bell 206/OH-58 and Bell 407. About 90 percent of AFS' sales have been to the military helicopter market, but the firm is increasing its presence in the commercial market.
AFS brought 30 employees into the new facility, but that number has increased to 32 since January. The company will add new jobs as it grows but doesn't have targets for future employment.
AFS expects 2005 sales of $33 million, up from $24 million in 2004, Scimone said. Sales in 2003 were $5.7 million.
The spike in sales is primarily due to greater demand for AFS' inlet barrier filters by the U.S. Army, one of its largest customers. These filters prevent sand, dirt and dust from entering helicopter engines where they can cause damage.
"Military aircraft are really getting beat up out there due to the desert conditions they are flying in and will be for a while yet," Scimone said.
"If an aircraft is flying between 80 to 120 hours a month in-theater over a one-year period, the return on investment is about $1.5 million per aircraft per year," Scimone added. "These kinds of return on investment are rare in the industry, especially with an investment in a new engine, which costs at least $350,000." The cost of AFS' filter systems ranges from a few thousand dollars for APU systems to $75,000 for a large Blackhawk helicopter system.
Construction of the new facility began in August 2004. AFS moved from its former 9,000-square-foot space, also located at Missouri Research Park. Including land and equipment, AFS' new facility cost $2.6 million.
U.S. Rep. Todd Akin, R-2nd District, said, "Our region has a number of companies like AFS that are playing a crucial role to help our military perform at its highest level, and I am excited about the investment that AFS has made in the St. Charles County region."
AFS suppliers in St. Charles County include Austin Machine in O'Fallon.
About 75 percent of the new AFS building is warehouse and production space, with the remainder used as office space. The new facility includes expanded space for engineering and test labs.
Scimone said that AFS continues to track helicopter programs and development at the various branches of the U.S. military in order to penetrate that market.
The company hopes to generate more than 20 percent of its sales next year from the commercial helicopter market and is introducing new products to improve sales in that market. New products include filter systems for the Bell 206B jet ranger, Bell 205/210, Eurocopter AS-350 and several brand-new commercial helicopters.
AFS anticipates that it will have its filter system included as a manufacturer's option on the new Bell 417 helicopter.
"It will be the first brand-new helicopter coming off the line where you can select the air-filtration system you want," Scimone said.
Sid Price is a St. Louis freelance writer.
