Piper to Close Plant for an Extra Two Weeks
Talk about a gut
check... an industry that has reinvented itself over the last
decade, having improved itself with new technologies, methodologies
and tremendous progress, continues to be victimized by an economy
that has no sense of direction, unless that direction is
"down."
A brief, painful, missive from the folks at Piper tells ANN
that:
"The most recent GAMA (General Aviation Manufacturers
Association) report on aircraft deliveries indicates the worldwide
general aviation market has continued to deteriorate. The
decline is being driven by overall weakness in the economy, the
inability of customers to obtain financing, and the increase of
both new and used aircraft inventory. As a result, and to
ensure our continued viability, Piper Aircraft has decided to shut
down operations for one week in May and another week in June, in
addition to the previously announced closings of one week in
April and one week in July. These shutdowns will be without
pay and will affect all employees in the Company, from Executive
Management to Hourly manufacturing employees.
We realize and regret the impact that this has on our
employees and are doing everything possible to preserve the 650
jobs Piper continues to provide. Piper is focused on taking all
necessary actions to weather the current downturn in such a way
that we will be positioned for growth when the economy
improves.
These actions will
help support the company's ongoing operations by facilitating a
reduction of raw material and finished goods inventory, focusing on
expense control and providing the company an opportunity to
determine how President Obama's new stimulus package will impact
the market. While we are pleased that the President's
stimulus package contains a provision for bonus depreciation and
feel that will help facilitate a market recovery, we are, however,
still deeply concerned about high inventory levels of new and used
aircraft, lack of available credit and the overall continued
decline in consumer confidence.
Although no one can predict how long this recession will
last or how deep it will go, we believe that Piper's focus should
be on preserving as many jobs as possible while continuing to
dedicate ourselves to building aircraft of the finest quality and
the most exacting safety standards of any within General
Aviation."
ANN E-I-C Note: Folks; this is
heartbreaking stuff... the industry is, ultimately, a small one and
the decisions we've seen in the last few weeks are nothing less
than what these companies must do to survive until better times.
Still, as we can personally attest to having heard it in their
voices, or seen it on their faces, the decision-makers of the GA
world are taking great pains to do what they must... and hating the
result. We can only hope that the current economic maelstrom finds
its way to some sense of solution as soon as is possible... as one
of the finest industries in this nation deserves much better than
it's getting. -- Jim Campbell, ANN E-I-C.