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.

FMI: www.piper.com