Survey business about more than money

On November 28, the banks placed Aerodat, a well-known airborne geophysical surveying firm, into receivership. The extent of the damage to our industry was far-reaching in that people are out of work, Aerodat’s numerous suppliers will probably see very little of that which is owed to them and a Canadian company on the leading edge of technology has disappeared.

Aerodat was probably the world’s third-largest airborne geophysical contractor at the beginning of this year, and employed more than 100 people.

The company had arguably the best helicopter electromagnetic systems in the world, and commanded a 30-40% share of that market worldwide. It is amazing that such a company could have been so financially fragile.

As recent events may prove, it is perhaps not technological excellence that determines whether a survey company wins contracts, but whether it has the lowest prices. Customers can become overloaded with technical information from competing airborne geophysical firms, and sometimes choose on the basis of price. Contractors also make the mistake of submitting a low bid simply to secure a contract.

Some other firm will probably purchase the assets of Aerodat or another company will rise from the ashes of the firm that proclaimed itself the “World Leader in Airborne Geophysics.” The lesson that should be learned from Aerodat’s demise is that our valued, high-technology contracting companies are vulnerable.

Customers should not squeeze such firms too tightly for that small discount lest they too be forced to close their doors. For their part, contractors must stop the practice of undervaluing their services.

Robert Lo

Former Chief Geophysicist

Aerodat