Van’s Aircraft founder Richard VanGrunsven has announced changes at the company aimed at addressing “serious cash flow issues, which must be addressed quickly to ensure ongoing operations. We are confident that we can work through this situation, but some changes are required,” he says. Van’s posted an extensive explanation of the situation in addition to the video featuring founder VanGrunsven. (You can read it here.)
Van’s current challenges result from “a combination of significant events over a relatively short period of time [that have] increased costs, doubled normal inventory levels, slowed deliveries, and strained our cash flow to the breaking point,” the company says. It cites increases in manufacturing still evident from the COVID slowdown, an issue with primer used by a subcontractor in quickbuild components and the most recent problems with laser-cut parts, which were a response to help increase production capacity at a time when Van’s was experiencing historically high demand. Builders discovered that the laser-cut parts tended to crack during the dimpling process. “Although our testing proved that laser-cut parts are functionally equivalent to punched parts, belief among many builders is that they are unsuitable for use,” the company says. “This has resulted in an unmanageable number of requests to replace laser-cut parts and cancel orders. More than 1800 customers are currently affected by this issue, some of whom have received more than one kit.”
