Return to Virginia Business - May 2002

Sniffing out terrorism

It wouldn't be quite right to say business is booming, because that's just what this business tries to prevent. Portsmouth-based American K9 Interdiction formed last summer, well before the terrorist attacks of Sept. 11 raised the national consciousness on homeland defense. And that's the whole idea behind AK9I - staying one step ahead of security threats by using dogs trained to sniff out explosives.

"We bought three dogs down at the federal training center at Lackland Air Force Base three weeks before the (World Trade Center) towers went down," says Owen Williams, part of AK9I's ownership team. "We paid $800 apiece and now the same dogs are worth $2.8 million over their working lives. We had a two-year business plan to get the company up and running, but you can imagine what happened to that plan on Sept. 11. Since then, our phones haven't stopped ringing."

Owen's brother, Donald, was part of the Air Force's working dog program and later served on the team that trained dogs for presidential protection. The brothers, along with H. Lane Mashaw, founded the company last summer and began raising funds to purchase dogs - mostly Belgian Malinois and German Shepherd Dogs.
Williams says the company plans to establish 22 dog teams this year at an approximate cost of $333,000 but with a potential return of $4 million. A team of one handler and one dog generally pulls in $75 an hour or nearly $280,000 a year, based on recently signed contracts. AK9I is actively wooing investors and has already begun construction on a new state-of-the-art training facility on 86 acres. The site, in the southernmost part of Virginia Beach, stretches across the North Carolina state line.

The company also has a big bone to toss to investors. Williams says he expects the new business to reach $100 million in gross sales in just 18 months. "Every agency that you can imagine in the world is scrambling for dogs," he says. "If there were 10,000 of us out here, it wouldn't be enough."

- Mike Ashley