Today we’d like to introduce you to Peter Bjostad.
Peter, please share your story with us. How did you get to where you are today?
CAGE was formed by Carl Clause and Gene Difonso in 1997 after both left leadership positions at BAE, a global baggage handling system manufacturer. They picked the company’s name by combining the first 2 letters of their first names. They recognized a shortage existed with airport and airlines staffing resources to successfully manage the development and implementation of complex baggage handling systems (BHS) so they started CAGE to fill that void.
Things started out slowly the first year for CAGE as Carl and Gene set up the company in Carl’s dining room. American Airlines (AA) gave them their first design project at DFW Terminal C and their Corporate Real Estate Department eventually helped them establish their first office in Irving. Shortly thereafter, AA gave CAGE a contract for Miami’s new North Terminal Development project which was the largest baggage handling system design in the U.S. at that time. To that point in time, the aviation market had very limited subject matter experts serving as owner’s agents and these 2 projects were instrumental in quickly establishing CAGE as a major design and technical resource for their BHS development in the U.S. As projects were added, Carl and Gene added aircraft gate and parking design services. Soon afterwards, the company took on multiple international airport clients as well. Today, we have served 140 airports in 16 countries.
Carl and the CAGE family feel truly blessed with our business growth and successes so we always felt the need to give back. As such, CAGE CARES was formed as a 501 – 3c, non-profit charity to give back to our local communities. We are actively involved with supporting underprivileged students at Keyes Elementary in Irving providing them with supplies and resources they are not able to obtain. We also conduct fund raising events throughout the year, supply blankets to the homeless through local churches and sponsor a family in need each Christmas.
Has it been a smooth road?
After the initial 2 baggage system design projects with American Airlines at DFW Terminal C and Miami’s new North Terminal Development project, CAGE realized steady growth over the next 4 years when the events of 9/11 occurred, CAGE was already poised to support the baggage security needs of the fledgling TSA organization by virtue of designing in-line baggage screening systems at SFO International Airport. As a result, we became one of the leading BHS design resources to the Boeing Team charged with integrating security into the baggage systems at 429 U.S. airports.
During the height of our considerable success, Gene DiFonso died suddenly in 2005 leaving a huge void in the company leadership. Although the loss was both emotional and impactful to CAGE’s staff and management, the company prospered having expanded and diversifying our client base and project backlog. Even through the recessionary period starting in 2008, CAGE had sufficient large scale projects to sustain it through the first 2 to 3 years of this tough economic period. Eventually, airline profits faltered resulting in less projects which ultimately shifted the project ownership primarily over to airports. During this transition, CAGE adjusted its client focus and continued to secure large projects at DFW, Atlanta and San Francisco but the number of small and mid-size projects began to shrink. As such, 2012 through 2014 were relatively leaner years but we were fortunate in being selected 4 major airport development projects around the country which began the rebound of the company’s business and bottom line.
In July of 2017, the company made a major change when Carl sold the company to Ross & Baruzzini, a multi-discipline engineering/architectural firm based in St. Louis. R&B is part of the DAR group, a large, international design firm with holdings in multiple design firms which compliments their overall service offerings. By virtue of this expanded family, this acquisition greatly enhances our ability to reach more markets which continues to strengthen CAGE’s economic outlook.
So let’s switch gears a bit and go into the CAGE, A division of Ross and Baruzzini story. Tell us more about the business.
CAGE is celebrating its 20th year in business as a diversified consulting and management company with specialized engineering experience in aviation support systems. The company was established to provide professional services focused on planning, assessments, design, procurement, installation, commissioning and 24/7 technical support of complex automated baggage handling systems (BHS), explosive and trace detection systems for baggage security screening, aircraft parking and movement planning, and aircraft parking/gate support systems including Passenger Boarding Bridges (PBB), 400 Hz ground power, Preconditioned Air (PCA), and potable water systems.
CAGE’s full range of services is provided by a professional staff with extensive hands-on experience and in-depth knowledge of applied technology, manufacturing, construction and application of governmental security mandates and processes. We have handled more than 1,000 complete or in-process projects involving automated baggage systems, passenger boarding bridges, and gate support systems ranging from $25,000 to $235,000,000 in contract value.
Additionally, our personnel and system subject matter experts (SMEs) possess over 15 years of experience supporting the Transportation Security Administration’s (TSA). Our professional qualifications have been notably affirmed by TSA and we have been contracted as a core member of their engineering and site lead teams supporting the security needs of over 140 U.S. airports.
Our major strength is our people who come from design firms, equipment manufacturers, installation companies and airlines. Collectively, we possess the knowledge of the industry and the airport working environment. This insight affords us first-hand experience of actually knowing what makes systems work and maintainable. When the dust settles from a major construction project and all the contractors leave the job site, we position ourselves to be the client’s 1st line of support to make sure they stay operational, secure and safe.
How do you think the industry will change over the next decade?
Air transportation has grown incredibly over the past 20 years due to competitive pricing, expanded international markets and most recently, low fuel costs. As a result, airlines and cargo operators have enjoyed strong revenues and are eager to invest in serving more and more markets. Understandably, the airports have followed suit by expansion of terminals and adding new airports to meet the increase of passenger, baggage and cargo demand. So as they grow, so does the need for infrastructure, baggage handling systems and aircraft support systems.
Along with this growth, there is a stronger need to expand security, technology and passenger services. As today’s passenger loads increase, they have higher expectations of service which equates to speed, information and convenience. From airlines’ and airports’ perspectives, they are seeking automation, reliability, flexibility and efficiencies.
Fortunately, technology has evolved as well so there are now industry solutions available that address and meet these requirements. In fact, some of these technologies have existed in other markets and are just now being adopted by U.S. carriers and airports so adapting them to improve operations is not a far stretch.
All said, we are seeing airline consolidation and airport development driving more and more investment in facilities and systems. Technologies such as automated guided vehicles, RFID, Smartphone Apps, improved bag processing/screening speeds and energy efficient systems are providing much better solutions for customer services and lowering costs. Over the next 5 to 10 years, we will be seeing an increasing amount of airport procurement to facilitate these changes resulting in more jobs and industry growth.
Contact Info:
- Address: 6440 North Belt Line Road, Suite 125,
Irving, TX 75063 - Website: www.cage-inc.com
- Phone: (972) 550-1001
- Email: [email protected]
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