AAR’s Distribution Network to Sell Composite Panels

WOOD DALE, Illinois, June 3, 2013 — AAR’s distribution and supply chain operation will now handle order management, distribution, and customer support for AAR’s composite flat-panel and standard products. This change is being made to benefit customers and will mean better responsiveness, 24/7 support, increased product availability, faster turnaround times, and global inventory and stocking availability.

This enhanced service will come at competitive market pricing, thus providing better value to AAR’s customers. The move also makes AAR more competitive in international markets for composite materials, such as Europe and Asia, by expanding its presence there. AAR’s composite flat-panel line consists of prefab interior panels and the pins and adhesives for those panels, manufactured by AAR’s Aerostructures and Interiors division.

“As the market for aerospace composites grows, instead of expanding customer support within the manufacturing division, we turned to AAR’s extensive existing sales and distribution network to handle this function,” said Vincent Misciagna, Vice President and General Manager of AAR Composites. “That way, customers can benefit from an extensive infrastructure already in place. They will now have a broader organization to lean on.”

That will translate into a noticeable difference in support levels, said Jason Felger, Vice President and General Manager for AAR Distribution and Supply Chain. “Customers will see increased availability of product and better service. We are stocking up inventory in order to get parts that customers need in as low a turnaround time as possible.”

Such responsiveness is critical in this industry, said Misciagna. “If a customer calls and says they really need a product, you better be able to get it to them. Sometimes you might have to deliver a product over the weekend or at 2 in the morning. That’s true on the back end, too, if there are questions about delivery or technical support needs.”

The move also gives AAR (NYSE: AIR) the chance to grow its composites presence internationally. Currently 90 percent of its sales are in North America. But AAR’s extensive distribution and supply-chain network, which includes global sales offices and stocking locations in Chicago, London, Singapore, Amsterdam, and Abu Dhabi, offers opportunities for a broader reach.

The changeover in product-line support will take place June 1. “Between now and then we will be doing the groundwork to create a seamless transition,” says Misciagna.