TCM Announces Temporary Plant Closures, More
Teledyne Continental Motors Inc. announced Friday that it will close for one week, Monday Oct. 5 through Monday Oct. 12, and will put other cost-cutting measures into effect "in response to reduced demand" for the aircraft engines and parts it produces. Salaried staff will go to four-day workweeks as of Oct. 12 and vacations for Thanksgiving and Christmas will last one week each. Beyond that, TCM has a shutdown planned for Jan. 4, to Jan. 9, 2010. The company says its goal is "to protect as much of our valuable employee base as possible," and rebuild its backlog while it endures this period of reduced demand. Customers will not be left entirely in the dark during the closures. Sales will be open, TCM will make customer service available for emergency support calls, and shipping/receiving will continue to manage delivery of incoming and outgoing orders. According to TCM, the cost cutting is only part of the company's slow-market strategy.
TCM has focused on initiatives to drive sales and cost controls that the company says have improved efficiency and lowered costs while also providing stability to aftermarket engine and parts sales. However, increased efficiency at the factory, along with lower demand from the factory, has chipped away at order backlog. The closures, says the company, "will allow order backlog to grow to a level that supports efficient factory operations."