TransDigm: Managing Opcos through COVID
Former President at TransDigm
inpractise.com/articles/transdigm-managing-opcos-through-covid
Former President at TransDigm
Interview Transcript
This is a snippet of the transcript, sign up to read more.
How much did they increase the price, per year?
In those cases, I believe we were doing five-year contracts. I don't think TransDigm would sign up for the full five-year fixed price that we were trying to do, but it was probably around a 3% to 4% increase. They would negotiate that into the contract. At the end of the five years, when negotiating the next big contract with Boeing and others, they'd probably raise it by 7% or 8%.
This is a snippet of the transcript, sign up to read more.
How are they so profitable?
Another interesting aspect of extruding parts is the setup times. Switching to a new die run for a different shape part could take six to 12 hours. Then you'd have to tweak the shape and finish to make it perfect, run it for two hours, and be done due to the low volume in aerospace. A typical extrusion house doesn't want that kind of work; they prefer to set up a machine and run it for hours on end. We had proprietary material approved by Boeing, so when Collins, Safran, and others needed parts, it was easy to come to us as everything was pre-approved.
This is a snippet of the transcript, sign up to read more.
Related Content
Copyright Notice
This document may not be reproduced, distributed, or transmitted in any form or by any means including resale of any part, unauthorised distribution to a third party or other electronic methods, without the prior written permission of IP 1 Ltd.
IP 1 Ltd, trading as In Practise (herein referred to as "IP") is a company registered in England and Wales and is not a registered investment advisor or broker-dealer, and is not licensed nor qualified to provide investment advice.
In Practise reserves all copyright, intellectual and other property rights in the Content. The information published in this transcript (“Content”) is for information purposes only and should not be used as the sole basis for making any investment decision. Information provided by IP is to be used as an educational tool and nothing in this Content shall be construed as an offer, recommendation or solicitation regarding any financial product, service or management of investments or securities. The views of the executive expressed in the Content are those of the expert and they are not endorsed by, nor do they represent the opinion of In Practise. In Practise makes no representations and accepts no liability for the Content or for any errors, omissions, or inaccuracies will in no way be held liable for any potential or actual violations of laws, including without limitation any securities laws, based on Information sent to you by In Practise.
© 2024 IP 1 Ltd. All rights reserved.