Hot Section Technologies (HST) has been in the business of aircraft maintenance, repair and overhaul for over 30 years. Its experts provide airframe maintenance, repair and overhaul services for regional and turboprop aircraft manufactured by Boeing, Bombardier, Embraer, Fairchild, Fokker, Hawker, Beechcraft and others. They also provide maintenance, repair and overhaul services for turbofan, turboprop and APU engines manufactured by GE, Honeywell Aerospace, Pratt & Whitney and Rolls Royce.
HST was in the midst of a turnaround which started in 2016 and, as a result, was experiencing solid growth but with that growth came challenges, including a significant strain on working capital and business operations.
The EDC-VC provided HST with both a uniquely-structured loan for working capital and consultation from specialists in process improvement, finance and marketing.
HST’s working relationship with the EDC-VC began with consultations. In February 2016, HST CEO Jase Rex met with SBDC advisor Carlos Conejo, a Lean Six Sigma Master Black Belt who spent a significant amount of time in the company’s shop reviewing everything from shop layout, purchasing practices, inventory control, work flow and repair procedures. Following those review sessions, he provided ideas for improvement.
Rex then met with SBDC advisor Gonzalo Fernandez, a specialist in finance with decades of experience in providing financial support to business through banking. After assessing the company’s financial condition, Fernandez developed a financial plan that would provide adequate working capital and stabilize operations.
Finally, HST leaders met with SBDC advisor Rose-Lise Obetz, Ph.D., a specialist in marketing. She reviewed the company’s marketing and sales practices, evaluated its market, customers, competition, website, search engine results and branding, then made suggestions for improvement in each of those areas.
Consultation with experts from EDC-VC resulted in improved business practices and a more even cash flow.
“Our customer base has grown significantly and spread throughout the world,” Rex said. “I believe our current growth rate in revenue is directly attributable to the relationship we have with the EDC-VC. We now have solid tools to manage both our operations and finances.”