Margarita DeWitt passed on attending this year’s Paris Air Show to take care of a business transaction involving her Sun Valley aircraft parts manufacturing business. DeWitt, president of Sheffield Manufacturing, wrapped up buying up two other aerospace companies, one in Chino and the other in Torrance, that will give Sheffield a broader product line and manufacturing power. Sheffield will be the center of the hub for the three companies, which will total about 160 employees. The $16 million for the acquisitions came from Kann Capital, an investment banking firm in Century City. The deal took about a year to put together and while there were other companies looked at, Fortune Manufacturing in Chino and Hermach Machine, Inc. in Torrance were the best two, said DeWitt, a former Long Beach police officer, who with her husband bought Sheffield in 2004. To have leased out another building and purchased new equipment would have taken longer, DeWitt said. While not having quantifiable numbers, the type of consolidation such as between Sheffield, Hermach and Fortune is not atypical especially in the mid-tier of the supply chain, said John Anderson, director of aerospace and defense with California Manufacturing Technology Consultants, a not-for-profit consulting firm. Aerospace is booming on both the commercial and military sides and suppliers are looking for more capacity to handle the orders, Anderson said. Add into the mix that because Boeing is becoming more of a lead system integrator, more work is being pushed down the supply chain, Anderson said. “The primes (aircraft manufacturers) are looking for faster delivery and more capacity because things are robust,” Anderson said. “These types of companies are trying to figure out different ways to achieve that capacity.” Both companies bought out by Sheffield are long-time suppliers to the aerospace industry. Fortune has been doing “fantastic” business although the owner had recently passed away, DeWitt said. Hermach, founded in 1955, was a different story, however, and Sheffield bought out the company more for its equipment than its work orders. “We’ll take it from the red to the black,” DeWitt said with confidence. The computer numerical control machines Hermach uses have two or three spindles that allow for more productivity and save on the cost of equipment and space. Hermach supplies machined parts to Lockheed Martin, Vought Aircraft Industries and Duccomun Aerostructures. As Sheffield makes small to medium sized parts, the larger parts made by Fortune allows Sheffield to broaden its product line, DeWitt said. Fortune makes the C-17 rib for Boeing and the F/A hinge for Northrop Grumman’s military aircraft division. It has been recognized as a Small Business Administration Subcontractor of the Year and as a preferred supplier by Boeing and Vought Aircraft Industries. Boeing and Northrop number among Sheffield’s primary customers and contribute to an environment in which Sheffield is bursting at the seams with its sheet metal work, precision machining and assembly. That the company does all three makes it unique, DeWitt said. “That combination is far and few between,” DeWitt said. “Boeing would rather go to someone who can do it all.” While missing the Paris Air Show, certainly the news coming from the event brought a smile to DeWitt. Boeing announced it received orders for 510 planes, including 63 planes from lessor International Lease Finance Corp. of Century City. At the same time the Chicago-based aircraft maker delivered good news with an announcement that its C-17 plant in Long Beach would remain open for another six months, assuring suppliers such as Sheffield that their parts will still be needed. DeWitt anticipates the boom in aircraft building to continue for at least another five to 10 years. But in the event of a downturn, the multiple customers shared by Sheffield and its two acquisitions come as a benefit. In the aerospace industry, the number of successful companies is dependent on the breadth of their customer base, said Brad Ward, president and CEO of the Small Manufacturers Association of California. “That allows them to diversify profit margins and weather any storm,” Ward said.
