CUSTOMER AND SUPPLIER CONCENTRATION

12 Months Ended

Dec. 31, 2013

Risks and Uncertainties [Abstract]

CUSTOMER AND SUPPLIER CONCENTRATION

CUSTOMER AND SUPPLIER CONCENTRATION

Direct sales to our top three customers, Spirit AeroSystems, Gulfstream Aerospace Corporation, and The Boeing Company accounted for 28.5%, 14.6% and 14.4% of our total revenues in 2013, respectively.  These revenues are reported by both the Aerostructures and Engineering Services segments.  Accounts receivable balances related to these customers were 27.8%, 8.5%, and 5.7%, of the accounts receivable balance at December 31, 2013, respectively.

Direct sales to our top four customers, The Boeing Company, Gulfstream Aerospace Corporation, Spirit AeroSystems and Bombardier accounted for 20.8%, 16.1%, 13.0% and 10.1% of our total revenues in 2012, respectively.  These revenues are reported by both the Aerostructures and Engineering Services segments.  Accounts receivable balances related to these customers were 11.3%, 5.6%, 27.9% and 6.4% of the accounts receivable balance at December 31, 2012, respectively.

Direct sales to our top three customers, The Boeing Company, Gulfstream Aerospace Corporation and Spirt AeroSystems, accounted for 18.3%, 16.5% and 13.7% of our total revenues in 2011, respectively.  These revenues are reported by both the Aerostructures and Engineering Services segments, except Gulfstream Aerospace Corporation, with respect to which revenues are reported by the Aerostructures segment only.

The Company did not have any sales to a foreign country greater than 10.0% of its total sales in 2013, 2012 and 2011, respectively.  The amounts of profitability and identifiable assets attributable to foreign sales activity are not material when compared with revenue, profitability, and identifiable assets attributed to United States domestic operations during 2013, 2012 and 2011.

The Company purchased approximately 58% of the raw materials used in production from two suppliers in 2013. The Company purchased approximately 51% and 59% of the raw materials used in production from two suppliers in 2012 and three suppliers in 2011, respectively.  The Company has increased its capability to integrate components into higher level aerospace assemblies and to provide point of use kitting.  As a result, there was an increase in the use of third party suppliers for the purchase of strategic components.  During 2013 we purchased approximately 24% of the procured parts used in assembled products from two suppliers.  We purchased approximately 49% and 61% of the procured parts used in assembled products from three suppliers in 2012 and four suppliers in 2011, respectively.