For what it’s worth, I’m a retired CPA having spent 80% of a working career with a major international accounting firm. I’ve seen many startup operations, and have also visited with the folks in Duluth while considering a purchase of an SR20. What they have accomplished to date has been both extraordinary and outstanding. But in any complex manufacturing environment where significant elements of both the manufacturing and the business processes must be “made up” as one goes along, there will be some bumps in the road. I’m not troubled by today’s announcement folks; based upon what we’ve seen re the performance over the past few years from Cirrus, they will work through this bump and wind up stronger for it. Patience is a virtue. BTW, lest you wonder, I have no financial ties whatsoever with Cirrus - rather, I am a guy who recognizes a good operation when I see it, and deeply admire and respect the success and strengths of the fine people at Cirrus.
Cheers all,
Pete
For those not on Cirrus’ customer email list, here’s a message they delivered this afternoon. Willingness to communicate the bad as well as the good is a mark of maturity. Good work.
Dear Cirrus Customer:
You may have noted in the media that Cirrus is undergoing a significant
internal restructuring to overcome some “growing pains.” I have attached a
copy of a release made to the media tonight just to keep you up to date.
The objective of this effort at is to reshape Cirrus into a strong,
self-sustaining production company and build the airplanes that we want to
deliver and, we hope, you want to fly.
Please feel free, as always, to call us at any time.
Sincerely,
Ian Bentley.
CIRRUS DESIGN RESTRUCTURING FOR GROWTH
DULUTH, MN, February 2nd, 2001 – Cirrus Design
Cirrus Design Corporation today notified employees of a short-term reduction in its workforce. The reduction is part of a plan to streamline production and improve process flow while integrating the newly FAA-certified SR22 into its production line. In the last 18 months, Cirrus has delivered 111 SR20 aircraft, with a backlog of 639 orders. Rapid growth over the past year-and-a-half increased production capacity, but continued growth will require process refinement and cost reduction.
Management’s goal is to stabilize production by the end of the first quarter at one-aircraft-per-day. “Over the last 18 months, we have grown tremendously and have accomplished a great deal. It is now time for us to capture the gains we have made in production and focus on improving efficiency,” stated Alan Klapmeier, Cirrus president and CEO.
The staffing changes affect 127 employees across the whole company. After the reduction employment will stand at 512. Cirrus officials anticipate a recall as production rates increase.
Cirrus Design produces the SR20 composite aircraft and its derivative model, the SR22. Cirrus Design Corporation is based in Duluth, Minnesota, with additional facilities in Grand Forks, ND, and Hibbing, MN. The company designs, manufactures and markets general aviation composite aircraft, incorporating advanced technologies that result in high levels of performance, safety and comfort.