Why are there so many GA plane manufacturers if they sell so few new planes?

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wildb

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wildb
With new plane sales so low how are there still so many different models and brands of planes?
 
How many manufacturers do you think there are?
 
JoseCuervo said:
How many manufacturers do you think there are?
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Not many for sure. Textron (Cessna & Beechcraft), AVIC (Cirrus & Mooney (and Continental Motors)), Vans, Piper, Pilatus, and who else?
 
Since a home builder is considered the manufacturer and his name typically goes on the data plate, I guess there are thousands of manufacturers.
 
GLMS_NC said:
Not many for sure. Textron (Cessna & Beechcraft), AVIC (Cirrus & Mooney (and Continental Motors)), Vans, Piper, Pilatus, and who else?
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American Champion, Maule, Aviat and all of the Cub clones to name a few.
 
wildb said:
With new plane sales so low how are there still so many different models and brands of planes?
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In theory, profit is profit. We like to think that a manufacturer of a product must make tens of thousands of an item to make them profitable. In fact there is more than one way to make a profit. You can make money on very low production numbers.

If a plane manufacturer can sell say 20-30 planes a year and each one goes for $700,000, that's $14,000,000 to $21,000,000 gross income. In theory let's say each plane costs $ 650,000 to build all in. That's $1,000,000 to $1,500,000 in profit. That's enough to stay in business and carry on.

I have to assume that there are enough buyers with the means to pay these prices that also have a wide variety of missions, likes and desires to keep all the manufactures hanging on by a thread with their different offerings.
 
GLMS_NC said:
Not many for sure. Textron (Cessna & Beechcraft), AVIC (Cirrus & Mooney (and Continental Motors)), Vans, Piper, Pilatus, and who else?
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Don't forget about the Diamond Manufacturer!
 
30 airplanes at $20k each is only $600k a year. Even if this covers payroll and all other costs, this isn't much profit for a $18m / year company.
 
brian];1950528 said:
30 airplanes at $20k each is only $600k a year. Even if this covers payroll and all other costs, this isn't much profit for a $18m / year company.
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Cost to Manufacture includes payroll, doesn't it? Can't hardly pay 100 people a year with $1M. I wouldn't can't work for $10,000 annually.

Many manufacturers try to maintain ~50% margin! through economy if scale; this doesn't work with low volume production.
 
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Don't forget they sell parts too! :D Price a couple what appear to be $20 items from Cessna and you'll see where they make money! :eek:
I would guess the gross profit margin in a piston single would be in the 20% range, but that's just a guess.:D Turbines probably less. :dunno:
 
N747JB said:
Don't forget they sell parts too! :D Price a couple what appear to be $20 items from Cessna and you'll see where they make money! :eek:

I would guess the gross profit margin in a piston single would be in the 20% range, but that's just a guess.:D Turbines probably less. :dunno:
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How long do auto manufacturers support cars with factory parts?
 
For certified single engine piston aircraft:
Cirrus, Cessna, Piper, Mooney, Beech?, Aviat, Diamond, American Champion, Maule, Extra

Probably left some out (European?).

One reason why so many is aircraft mfg is a "glamour business". That is, there are other reasons besides money people want to be in the aircraft business.

There are a fascinatingly large number of aircraft. Just look at Tradeaplane...
 
Momentum. The big $$ to develop the product is spent (in some cases a long time ago).
 
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