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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, May 29, 2014
BY JON BELL
A new generation of outdoor apparel companies targets the young and the urban.
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.
Thursday, June 26, 2014
Thursday, June 26, 2014
BY ERIC FRUTS | OB BLOGGER
Last year, the housing market in Oregon—and the U.S. as a whole—was blasting off. The Case-Shiller index of home prices ended the year 13% higher than at the beginning of the year. But, was last year a blip, or a trend?
Wednesday, July 09, 2014
BY LINDA BAKER | OB EDITOR
Scott Kveton, the CEO of Urban Airship is taking a leave of absence from the company. As the story continues to unfold, here’s our perspective on a few of the key players.
Monday, June 16, 2014
The Oregon economy could get a boost from a new trade agreement being negotiated between the U.S. and the European Union.
Monday, June 30, 2014
Oregon Business magazine won two silver awards for excellence in writing in the National American Society of Business Publication Editors Western region competition.
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