Cascade Aircraft Conversions

SBDC helps Eastern Washington manufacturer find new markets

GARFIELD - Cascade Aircraft Conversions doesn’t make aircraft, it makes aircraft better. Owner Doran Rogers never planned to do more than be the best, most efficient and effective crop duster pilot that he could be. But, he ended up designing and building some of the most effective and efficient parts for agricultural aircraft in the world, and now the world is knocking on his door.

After starting out as an agricultural aviation company in the 1960s (with Rogers as the sole owner/operator), CAC has grown into a total aircraft rebuild and refurbishing company with 20 employees, about two-thirds of whom are fulltime.

Inside two industrial buildings near Rogers’ home outside Garfield, Wash., brilliant yellow aircraft, mainly Air Tractor or Thrush, sit in various stages of repair or renovation. Many of them arrive with exhausted radial engines and depart with high-powered turbine engines. Unlike automobiles, which can run for 250,000 miles with proper care, aircraft engines need to be replaced after several thousand hours of flight.

About 15 years ago, Rogers, an FAA certified airframe and power plant mechanic since 1960, replaced the radial engine on an Air Tractor 401 with a turbine M601E-11. The resulting aircraft was lighter, more fuel efficient, generated lower engine temperatures, had more horsepower and required less maintenance. The only downside was that the turbine engine required increased airflow, so he developed a pressure cowl that delivers significantly more air to the engine. That package of improvements, which includes an innovative induction/filtration system, led to a 35 percent increase in productivity and before too long, the worldwide community of agricultural pilots was buzzing.

Tom Welch, general manager of CAC, says the world of agricultural aviation, with about 5,000 operators, is a small one. “It’s worse than a beauty parlor,” he said, laughing. Good news travels quickly, but so does bad, he said, so ensuring the highest standards of quality and customer service is critical.

Rogers, an aerial application pilot for more than 37 years, installed the first turbine engine and pressure cowl on one of his own planes in 1998. By 2003 he was ready to convert Cascade Flying Service to Cascade Aircraft Conversions and that same year he made his first international sale, finally convincing a friend and fellow pilot in Canada to convert one of his radial engines to a turbine. He has since converted over 60 other aircraft.

Cascades revenues are in the low seven figures, Welch said, and the export potential is huge. Pilots in the U.S. began moving away from piston engines to turbines in the late 1970’s, he said, and now that transition is happening in countries around the world. In October CAC sold one turbine conversion and an Air Tractor 401B with a turbine conversion into Canada and took an order for a conversion in Ecuador. In recent weeks additional orders have come in for conversions in Guatemala.

“Our main core competency is manufacturing,” Welch said. In fact, CAC has been granted parts manufacturer approval (PMA) by the FAA, which allows it to not only manufacture parts, but install them as well. Depending on the work being done, sometimes CAC will refurbish the entire airplane, and other times it will simply replace the engine. In either case, keeping up with regulatory issues and shipping requirements is challenging.

CAC first began working with the Washington Small Business Development Center Network in April 2011 when SBDC business advisor Terry Cornelison met Welch during a tour of Eastern Washington manufacturing companies. During the tour, which was arranged by the Northwest Intermountain Manufacturers Association, Cornelison learned that CAC was interested in expanding their export markets and contacted the SBDC export center for follow up.

Welch was invited to attend an SBDC new-to-export seminar, but wasn’t sure he could take time away from day-to-day responsbilities. When international trade specialists Katerina Korish and Vern Jenkins heard that, they decided to make the drive to Garfield.

Immediately, Welch said, their years of export experience was obvious.

“Whenever I have needed to, I have been able to pick up the phone to Katerina or Vern and immediately get resolution to an export challenge we were facing,” Welch said.

According to Welch, contractual guidance and consulting provided by Korish, Jenkins and the SBDC export center staff has helped CAC establish distributor relationships in a more than 20 countries, including Ecuador, Puerto Rico, Peru and Bolivia.

In addition, Korish’s review of export paperwork turned up a coding error that could have caused major headaches down the line, but was rectified without harm. Through his discussions with the SBDC, Welch learned that CAC is located in a HUBZone (Historically Underutilized Business Zone) which is an advantage if they ever decide to pursue any government contracts.

In October, CAC applied for a State Trade and Export Promotion (STEP) grant through the Washington Department of Commerce. Funded by the U.S. Small Business Administration (SBA) STEP grants are designed to help small businesses expand into new export markets. One component of the program is an export voucher that helps defray the cost of attending targeted international trade shows.

“This is one of the few programs that I have personally seen that provide real concrete value to Washington State manufacturers who do not have the budget or wherewithal to hire subject matter experts in exports,” Welch said. “The work that Katerina and Vern provide Washington’s exporters is simply invaluable.”

According to Welsh, the SBDC is a critical component of a multilayered statewide export assistance program. CAC has also worked closely with John Brislin, president and CEO of the Export Finance Assistance Center of Washington; Janet Bauermeister, director of the U.S. Commercial Service within the U.S. Department of Commerce; Susan St. Germain, the economic development manager with the Washington State Department of Commerce; and Tom O'Brien, director of Eastern Washington Partnership Workforce Development Council.