Victor Mendelson, Co-President, HEICO Corporation
Victor Mendelson, co-President of HEICO Corporation, sat down with Invest: to outline the unique features inherent to Florida, which encourage continued business prosperity, as well as to describe the significant success HEICO has achieved in the last year and their anticipation of impending future growth.
Could you highlight a few significant milestones experienced by Heico Corporation over the last year?
There have been a couple of significant accomplishments. HEICO Corporation recently reported record sales and earnings with substantial growth for the fiscal year. This past year, we also completed our largest acquisition ever in purchase price, totaling over $2 billion, as well as several other acquisitions, thus expanding our product lines.
As a key player in the manufacturing, design, and aerospace industries, how do you perceive the city of Hollywood’s business landscape and infrastructure as a support to HEICO Corporation’s growth?
Growth has been excellent over the last year, just as strongly as it has been for the past 60+ years. HEICO has been headquartered in the same location for 64 years, and it’s been an excellent relationship. Our location provides great access and is centrally located, being close to the airports, Miami, Fort Lauderdale, and the railway.
What unique features make Florida an attractive destination for aerospace companies?
There are many reasons, but the most important would be the people, as Floridians are optimistic and excited workers. Regulation is reasonable and lighter than in other places, but still provides appropriate protections. The tax regime is excellent with no state income tax. Our weather is fantastic, and it’s a visually beautiful place, too. We have a great culture with sporting events and theme parks, and there is a massive international background. If someone is looking for a foreign destination, Florida’s proximity to the Bahamas provides an international vacation destination. We are the gateway to the Americas. Florida’s entrenched history in space sciences also supports the continued growth of our technical base. The state has experienced great political leadership, and the residents are committed to openness, freedom, and liberty.
What services or programs HEICO Corporation offer are in high demand from industry stakeholders?
Our products are used in satellites, defense programs and medical equipment. Engineering is key for us and involves developing new parts and products for our customers, whether this is through the evolution of existing designs or new products. We invest heavily in engineering, and we are fundamentally an engineering company at heart. Our products operate in the most demanding, hostile environments like space and deep-sea, so quality is an integral facet of the engineering drive.
How does HEICO Corporation promote the State’s advantages to potential investors and collaborators?
Florida is a great place to live, and people continue moving to the area. The challenge is navigating the higher costs of living. There’s not a lot of vacant land or space in South Florida, which is driving up costs. This is the main negative factor facing the region today, but there are many people committed to addressing the issue, with the goal of keeping Florida a great place to live and visit. This, in turn, helps business because at the end of the day, business is about people.
What are some of the current challenges HEICO Corporation faces in terms of business growth?
One of the main challenges has been the supply chain, though this has been improving as of late. Hiring people and attracting great talent has been a major obstacle. Any other issues are kind of noise level; our business is incredibly lucky to have great relationships with our customers.
The key to maintaining successful client relationships is giving them the products they require that are excellent in performance and quality, which are reasonable in cost, and that consistently deliver a fair value to the customers on time. Delivering this caliber of service builds a great reputation, and your customers will return.
What exciting projects or breakthroughs are on the horizon for HEICO Corporation?
We do a lot of work across different locations, with around 100 subsidiaries across the U.S. and internationally. Each one is responsible for developing its products. We are excited about the possibility of saving the government substantial amounts of money for military aircraft with the incoming administration.
With the upcoming change in government do you expect any new opportunities or challenges for HEICO Corporation on the horizon?
The new administration should be a significant positive for our business. There is a lot of opportunity on the defense side. We have many cost-saving products that we sell for less than our competition, and we base our whole business on providing the best value. The regulatory environment will likely be more favorable and encouraging to business. While the current administration has operated rather hostilely to business, the future looks to be a better environment for companies of all sizes.
What’s your outlook for HEICO Corporation as it relates to the company’s operations in Hollywood over the next five years?
The operations in Hollywood will continue to grow. We have engineering, manufacturing, sales, finance and accounting, and quality shipping and receiving — all of which have substantial presences in Hollywood. I see all of these areas continuing to grow and steadily requiring more space and facilities here. We continue to upgrade our existing facility to get more space out of the existing footprint, and I am excited about our future.
What are your top priorities in the short term?
The top priority will be continuing to do what we do best. HEICO Corporation will need to focus on product development, serving our customers, and taking care of our people. Unless we have great people, the business won’t go anywhere.
