Embraer has been a disruptive force in the marketplace for almost as long as it has existed as a public company, which dates back to 1991. And that is true whether it’s in the design and production of business aircraft or regional commercial jets.
Differentiating the company as much as its technology has been its uncanny ability to identify niche markets and develop products designed to meet customer demands in those spaces. In a recent conversation with President and CEO Fred Curado, he told me: “Once we are convinced there is an addressable niche, we go big time and put all of our resources—our heart, our soul, our money—into seizing that opportunity.”
Under Curado’s leadership, Embraer is becoming less of an exporter headquartered in Brazil and more of a global company that happens to do business in Brazil. It’s an important distinction that many companies, and not just in aviation, still don’t grasp but is key to growing market share. The architect of Embraer’s globalization strategy was Curado, who was appointed to his current position in 2007.
In my conversation with Curado, he wasn’t exactly dismissive of the company’s progress, but he clearly believes Embraer has a long way to go before it’s as global as it needs to be in the hypercompetitive world of business, commercial and military aviation. “We’re not there yet,” he said. “We’re still too Brazilian.”
Phenom 100 aicraft take shape on an Embraer assembly line in Melbourne, Fl., the company's only production facility outside of Brazil. Embraer's goal is to become less of a Brazilian exporter and more of multinational company fully integrated with cultures around the world.
A key part of that strategy is the company’s expansion of manufacturing and R&D in the U.S., Embraer’s largest single market. Driving the expansion in the U.S. is Gary Spulak, president of Embraer Aircraft Holding, based in Fort Lauderdale, Fl. The company recently opened a $24-million engineering and technology center in Melbourne, Fla., where it builds Phenom jets. Embraer also is investing about $48 million in a new Melbourne plant that will build Embraer Legacy business jets. “Our center of gravity is shifting [to the U.S.], and it will continue to do so,” according to Curado.
The North American market accounts for more than 50% of deliveries of all Embraer commercial and business jets, and more than 60% of the components used in aircraft manufactured in Melbourne come from U.S. suppliers. More than 1,000 Embraer aircraft are flying in the U.S.
