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|Articles - Jan/Feb 2012|
|Thursday, January 19, 2012|
Page 1 of 2
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.”
Thursday, July 03, 2014
BY TED AUSTIN & MIKE BAELE | GUEST CONTRIBUTORS
The Office of Economic Analysis announced that Oregon is currently enjoying the strongest job growth since 2006. While this resurgence has been welcome, the lingering effects of the 2008 “Great Recession” continues to affect Oregon businesses, especially with regard to estate planning and business succession.
Tuesday, August 19, 2014
BY TOM COX | OB BLOGGER
Tom Cox interviews Steve Balzac, author of "Organizational Psychology for Managers."
Friday, August 22, 2014
BY CLIFF HOCKLEY | OB GUEST CONTRIBUTOR
When business intersects with family, a host of situations can arise. Without a clear vision and careful planning, hard-earned investments can become stressful burdens.
Friday, July 18, 2014
BY JASON NORRIS | OB GUEST CONTRIBUTOR
Back in May, we shared a common Wall Street quote about investing, “Sell in May and go away.” Fast forward to July and the most common question we have been getting from clients is, “When is the market pullback going to occur?”
Thursday, June 26, 2014
Friday, June 27, 2014
BY JASON NORRIS | OB BLOGGER
Over the last several months we have seen a wave of cross-border acquisitions, primarily U.S.-based companies looking to purchase non-U.S.-based companies. There are a few reasons for this, but the main culprit is the U.S. corporate tax system. The United States has one of the highest corporate tax rates in the world.
Wednesday, August 20, 2014
By Kim Moore | OB Editor
The 2015 survey launched this week. It is open to for-profit private and public companies that have at least 15 full- or part-time employees in Oregon.
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