Global express mail company
DHL and aircraft maintenance and repair company
PEMCO have both seen business grow in 2011, despite challenging economic conditions.
DHL, which opened its CVG hub in 1983, completed a $22 million dollar expansion of its American facilities in November 2011, which added to its existing aircraft parking apron and resulted in the construction of nine additional gates for DHL aircraft.
"As businesses increasingly go global to capitalize on emerging trends in international trade, the expansion at our CVG hub will position DHL to accommodate the growing needs of our importing and exporting customers," said Ian Clough, chief executive officer for DHL Express U.S., in a press release announcing the expansion.
The 2011 expansion was the second part of a $40 million upgrade to DHL's CVG hub, which included upgrades to the hub's auto sort mechanical system and internet technology systems, says Travis Cobb, vice president of DHL America hubs, network control and gateways.
Approximately 92 percent of all DHL shipments in the U.S. transit through the CVG hub on 78 daily flights. The airport is the 17th largest cargo airport in North America, according to CVG statistics.
Such a high volume of traffic for DHL required the company to grow.
"Cincinnati is very strategically located," Cobb says. "It's located within one hour (flight time) of 60 percent of the U.S. population. So we took that into account when looking at shipping to customers."
Not only is DHL expanding its facilities, it's expanding its workforce, which numbers more than 2,000 at the CVG hub.
"Depending upon shipping volumes, there will always be a need for employment in Cincinnati with DHL," Cobb says. "We're delivering fantastic service quality and exceeding customer expectations. Our customers are placing more loyalty on DHL, which translates into job opportunities."
Many Northern Kentucky organizations played a role in the expansion as well.
"We've gotten great support from the Chamber of Commerce, the Kenton County Airport Board and Northern Kentucky Tri-ED," Cobb says. "We continue to have a very positive relationship with those organizations. Plus, DHL has a longstanding relationship with CVG, and that certainly helps us from a flexibility standpoint in meeting the changing needs of our business model."
A loyal and supportive relationship with CVG also played a role in the expansion of aircraft maintenance and repair company PEMCO, says Bill Meehan, chief executive officer for PEMCO and a former executive with Continental Airlines.
The Tampa-based company, which specializes in airframe maintenance as well as interior, avionics, structural and cargo modifications, opened its facilities at CVG in October 2010. PEMCO currently employs about 120 people.
"The chief executive of the airport, Candace McGraw, has been very instrumental in helping PEMCO establish an operation in CVG," Meehan says.
CVG was an attractive choice when the company was looking to expand its operations.
"PEMCO has expanded into providing maintenance, repair and overhaul (MRO) to regional aircraft," Meehan says. "CVG was an optimal choice for this expansion with a large population of regional aircraft operating in and out of the airport. CVG is one of our expansion initiatives."
Despite launching its CVG operations just over a year ago, PEMCO has set its sights high for its operations at the airport.
"The vast array of airlines flying in and out of CVG has allowed PEMCO to offer our service to a number of regional carriers," Meehan says. "We currently have not achieved our capacity at CVG and will be working hard in 2012 to achieve this."
The outlook, he says, is promising.
"Since PEMCO is relatively new to CVG, we are not yet a major player, but we do expect to aggressively change that."
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