Cormer Group elated to hit No. 5 status

Hey there, time traveller!
This article was published 11/06/2011 (5450 days ago), so information in it may no longer be current.

In the past, reference to the Manitoba aerospace sector was really a bit of a misnomer.

That’s because in reality, four large operations — StandardAero, Bristol Aerospace (a division of Magellan Aerospace), Boeing Canada Technologies and Aveos (formerly Air Canada Technical Services) — significantly dominate the local industry.

But out of a group of small manufacturing companies that sometimes supplied the Big 4, one has emerged as the clear No. 5 — Cormer Group Industries.

During this year’s Aviation Week, Cormer opened its doors to industry members for a rare glimpse at its operations that many longtime industry officials were not familiar with.

The privately held business — owned by Andrew Corner — has invested about $15 million in production technology over its 22-year history.

And in the past couple of years, it had invested several million dollars in new equipment, including a massive new five-axis horizontal machining centre, one of only a handful of such machines in operation in Canada.

One manufacturing industry executive recently said that when he considered a position at Cormer about five years ago, he did not think the company was well-positioned for the future. “I definitely would not say that now,” he said. “It is an impressive operation.”

The company makes flight-critical parts for several models of both Boeing and Airbus commercial jets, including metal parts for the new Boeing 787 and the new Airbus-350.

Vince Martin, president of the firm’s aerospace division, said while some of those parts contracts do not require large production volumes, that could change. “Those models (the 787 and A-350) are still in the start-up phase and demand will increase,” he said. “Getting involved in those programs is an investment in the future for us. There will be more demand.”

After starting out as a small regional machine shop in 1988 supplying parts to the Big 4 in the city, Cormer has developed into a significant supplier to the large original equipment manufacturers (OEMs).

And as is typical in the industry where defence work is a stable platform for entry into aerospace, Cormer, too, has a solid defence division. Its defence work is concentrated on drive train assemblies for General Dynamics’ Canadian and American armoured-personnel carriers.

With its feet planted solidly in both camps, Cormer went through the last recession better than many manufacturers. “The defence and commercial aerospace industries are very different,” said Leo Sousa, president of Cormer Defense. “When the economy struggles and there is government spending stimulus, defence does well. When capital markets are strong, the commercial market takes off.”

As Martin put it, “Cormer did not take part in the recession over the past three or four years.”

But it’s more than just a fortunate mix of business that has allowed the company to prosper and emerge as a real comer in the industry.

Vic Gerden, executive director of Manitoba Aerospace Association, said the fact that Cormer now lists some high-level global Tier 1 companies as part of its customer base is a testimony to its growth strategy.

“Cormer has progressed from a small- to medium-sized firm and gained space on the international scene, making significant investments along the way,” Gerden said.

Both divisions are positioned to grow. Martin and Sousa said they are producing quotes for contracts being tendered in Canada through industrial regional benefits programs in play as a result of recent equipment purchases by the Canadian military. (Non-Canadian manufacturers of defence equipment bought by the Canadian military must commit to buying additional Canadian goods and services.)

Currently, Cormer works exclusively in metal parts of all types, but early research and development has taken place into potential expansion into the composites parts business.

Lighter, stronger composite materials are preferred in the aerospace industry. Winnipeg is a hotbed in that area and Cormer has undertaken a study with assistance from the Composites Innovation Centre.

“We would like to get into composites. One day we will,” Martin said.

martin.cash@freepress.mb.ca