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|Articles - Jan/Feb 2012|
|Thursday, January 19, 2012|
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By Jon Bell
In the early days of Columbia Helicopters, back in 1957, the late founder and pilot Wes Lematta had trouble drumming up much business. At the time, helicopters hadn’t yet proven themselves in commercial applications, so Lematta would use his three-seater Hiller 12B for occasional construction jobs and county fair rides.
But in the fall of that year, Lematta plucked 15 sailors off a sinking dredge in the frigid waters of Coos Bay. The national attention boosted Lematta’s fledgling business and helped plant the seeds for what, over the ensuing 50 years, has become a unique and valuable sector of the Oregon economy: the heavy-lift helicopter industry.
Today, seven Oregon helicopter companies — Columbia, Evergreen Helicopters, Carson Helicopters, Croman Corporation, Erickson Air-Crane, Helicopter Transport Services and Swanson Group Aviation — account for an estimated 85% of the world’s heavy-lift helicopter industry. According to the Oregon Heavy Lift Helicopter Consortium, the industry in Oregon directly employs 1,400 people here with average annual wages of $52,000. The Oregon Employment Department estimates that the industry employs close to 3,000 Oregonians directly and indirectly.
“It’s a pretty strong industry here, but one that I don’t think a lot of people around the state know a lot about,” says Larry Holzgang, a business development officer for Business Oregon in Southern Oregon, which is home to four of the seven OHLHC companies.
The heavy-lift industry in Oregon really began to take off in the early 1970s with the advent of aerial logging. Until 1971, Erickson Air-Crane had been known as Erickson Lumber Company, and Croman added helicopter services in 1976 to complement its conventional logging business. Over the years, however, as timber harvests in Oregon have fallen — they dropped from 6.2 billion board feet to 3.9 billion board feet per year between 1990 and 2000 alone — the helicopter companies have had to diversify.
“The decline of the federal timber program has caused ourselves and our competitors to look for other opportunities,” says Todd Petersen, vice president of marketing for Columbia. “We made a very strategic decision five years ago to look for other market opportunities.”
Where Columbia, which employs 665 people worldwide and has revenues of about $200 million, and others have found luck is in firefighting, petroleum exploration, overseas logging, construction work and military operations. Of its fleet of 18 helicopters, Columbia currently has five in Afghanistan ferrying personnel and supplies around the country; five of its CH-47 Chinooks are moving drilling rigs in New Guinea and Peru.
Erickson, as well, has had to look outside of its logging roots for new business.
“I don’t recall the last logging job we did in Oregon. It’s been a while,” says Martin Cude, construction sales manager, who spoke during a breakout session at the Oregon Leadership Summit in December. “Most of the logging we do now is in Canada and Malaysia.”
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Oregon Sick Leave is here, and changes to the federal white-collar worker regulations are on the way. This workshop will prepare you for both. We invite you to participate in an interactive discussion on how to start planning now for the future impact on your operations and finances.
Presented by OEN + CENTRL + YESpdx.
This Roundtable will cover numerous issues under the employer "shared responsibility" rules of the Affordable Care Act, including how to track the "full-time" status of variable-hour employees, temporary or seasonal employees, and employees who experience a change in status or a break in service. Additionally, we will provide a brief overview of Code sections 6055 and 6056, which require most mid-sized and large employers to submit their first information reports to the IRS in early 2016 regarding the health insurance coverage being offered to employees. We invite you to participate in an interactive discussion on how to prepare for the future impact of the shared responsibility rules on your operations and finances.