Camit closes doors??

[Ercoupechris]

What a surprise, it looks like Camit has closed its doors

http://mobile.abc.net.au/news/2016-10-1 ... es/7918952

[LarryEWaiex121]

Chris,

Sad state of affairs with Camit. Having had the pleasure of flying #55 Camit 3300 , the company's failure is not for loss of a good product.
I don't think they got the proper exposure in potentially their largest market here in the USA. Instead of aggressively going after market share and being in "front" of pilots in the form of news releases, pilot operating experiences, picture breakdowns of engineering changes that set the product apart from its Jabiru linage, etc.
The breakout in the USA just never materialized and that I feel was a death blow to Camit.
You can have the best product on planet earth from an engineering point of view, but, if you lack the warehouse full of engines, spares and expertise to satisfy the customer with check book in hand, you have a problem. Its called lack of capital and they probably were not large enough to sell their paper to maximize cash flow? Business people have seen this over and over. Unfortunately, now I get to participate in the ride over the falls.
In the final analysis, I believe that something positive will arise from the ashes because the product is too good to go dormant forever. I think us owners need to take care of what we have and be patient in the short run.
Thank you Ian and crew for all your great effort. I hold no animosity towards you or your company.

Larry
Waiex121YX, Camit 3300, 33hrs and waiting to be adopted :(

[lgsievila]

Flying #17 CAMit 2200 in my Onex and it is a great engine-much better than my previous power plant. Agree with Larry's comments above and I had excellent service from CAMit.
Loren
N331EX

[WaiexN143NM]

Hi chris, larry,loren, all,
Oh no!! Not good at all! Wow camit builds for jabiriu, so what about them? Anyone get caught up in this? Deposits etc sent to camit, jab usa, or sonex? Sonex just announced an OEM agreement with Camit. Wow, i was just about to order some spare parts from camit. Can only think that the value of jab/camit parts will go up.
Like many, enjoyed meeting Ian, his crew, and positive attitude at oshkosh.
I hope that someway, some how Camit arises again.
WaiexN143NM
Michael

[WaiexN143NM]

Hi all,
I see sonex this afternoon removed all oem /camit info /pics/bundle price deals off their website.
More to come in the media im sure.
Again hopefully camit can get some new investors and open their doors again. Good luck to the layed off employees.

WaiexN143NM
Michael

[andrewp]

That is terribly sad and unfortunate.

AP

[vwglenn]

Glad I got their Tach sensor. After two years of fighting with my MGL to get my RPMs right, their sensor finally appears to have done the trick. Wonder if Jab can/has bought the rights to some of their stuff? Or perhaps a US company?

[sonex1374]

Jabiru USA posted this response to their website.

http://jabiruna.com/demise-of-camit-aero-engines/

-quote-

Demise of CAMit Aero Engines
Jabiru North America Admin October 13, 2016

The following open letter to the Jabiru fleet was received from Jabiru Aircraft PTY LTD staff on October 13, 2016, and details the impact of the recent closing of CAMit Aero Engines in Bundaberg, Australia.

Dear Jabiru Fleet,

Unfortunately, CAMit, who has been a prime supplier of Jabiru machined parts and who recently started making their own engine based on the Jabiru engine, are reported to have closed and receivers appointed.

We had been concerned for some time over the level of debt that the CAMit business carried and have done our best to support them with continuing orders despite the dramatic downturn in sporting aviation following the GFC, the appreciation of the Australian dollar and the significant increase in competition with the introduction of the LSA category aircraft. This is a very sad occurrence as we have always done our best to support Australian businesses.

Jabiru has always been structured to be able to withstand the wild swings in economic activity and demand for small sporting aircraft and engines that is the norm in the aviation business. We focus on innovative and cost effective design and manufacture using contracted suppliers who can deliver the quality needed for our engines and airframes and at a price that you can afford.

The demise of CAMit is a significant blow to the industry but we have adequate stock on hand to keep you flying and are working to quickly fill the gap in our parts supply chain from suitably qualified factories and suppliers.

We are continuing to develop the Jabiru engine to further enhance reliability, reduce maintenance and running costs and to continue to deliver an engine at an affordable price.

If you have any questions about your Jabiru engine or airframe please contact us.

Happy Landings,

Jabiru Team

-end-

Jeff

[hickej]

Jabiru posted this on their website regarding Camit and Jabiru's ability to continue with alternative sources.
http://jabiru.net.au

From the Directors Desk
As expected there has been much discussion on forums and in the media about the closure of yet another Australian Manufacturer. In the years prior to 2009 the aviation market was experiencing a boom period. World-wide demand for products was high, especially in America and South Africa. It was a time of waiting lists and ramping up production to meet demand. Then in one fell swoop in 2008 the GFC occurred and markets were wiped out overnight. Our American market (the majority of our business) virtually disappeared within a week. No-one could have foreseen the GFC and we all had hope there would be some recovery in the months and years that followed however it was a long slow road to recovery.
The flow on effects of the GFC did more than simply wipe out demand. Australia’s banking system was in very good shape which caused a massive in-flow of deposits in to Australian banks. This in turn pushed the Australian Dollar up to $1.10 US Dollars. This rapid rise in the AU Dollar from 0.75 cents to $1.10 completed the wipe out of our export market and also led to a flood of imports. The subsequent introduction of LSA meant manufacturers no longer had to face the costs of governmental compliance so a hundred or more new manufacturers emerged and increased competition on the domestic market dramatically. Jabiru’s share of the world and domestic markets dropped dramatically. Fortunately we were structured to be able to operate at this diminished level and still remain profitable.
Prior to Jabiru, as many of you will know, I previously worked for many years in the sugar cane industry. I was an engineer and a senior manager of a local company manufacturing sugar cane harvesters for the world market. The success and fortunes of this industry rose and fell on the world prices for sugar. Anyone who has run a business locked in to world commodity prices for agricultural products will know it takes considerable management skills to sustain a business in a market with wild fluctuations in demand. The harvesting business survived until it was taken over by a multi-national company and shipped to Brazil. I learnt many valuable lessons in these years.
From this experience I learnt early on in the development of Jabiru to expect the unexpected and to structure a business to survive huge fluctuations in the market. My business principle has been to utilise contractors where ever possible to minimize the huge capital investment required for machinery and buildings. Our premises are humble, we keep it simple. Our profits are used to invest in research and development, design and marketing, certification and staff development.
When the world wide demand for product started to increase significantly back in 2006, I very strongly advised our major suppliers, including CAMit not to go in to massive amounts of debt to meet this demand but rather to look at the possibility of out-sourcing to contractors and other strategies. My advice to CAMit at this time in 2006, so they could stay viable in the long term was to start the process of converting the Jabiru engine to castings rather than machining from solid to reduce the capital input and massive debt that would be required for more machinery and new premises. This advice and direction was strongly rebuffed by CAMit. Jabiru at this time obtained prices from New Zealand suppliers for crankcase castings. Jabiru was fully prepared and offered to fund the entire pattern and associated costs for CAMit to implement this development. This however was also rebuffed. I could foresee the capital required for machinery was dangerously high and debt funded, and could place them in a precarious position. 2006 was the beginning of the research and development of the cast engine that would require very low capital input for machinery. Ideally, I had hoped CAMit would come on this journey and continue to produce and develop the next generation Jabiru engines however two different directions and thought processes were occurring.
When the GFC did strike in 2008 and the market disappeared I became very concerned that CAMit’s business may not be sustainable on this dramatically reduced volume. From experience, I knew this was the time for aggressive management action and restructuring by CAMit in order for them to remain viable. To allow CAMit time for this re-structure, Jabiru continued to order and buy engines when there was simply no market in an attempt to assist and keep them viable. This in turn forced Jabiru in to a borrowing situation to continue purchasing engines to the point where we had over 360 engines in stock. Jabiru’s own survivability as well as CAMit’s had to be seriously considered at this point. Insufficient action seemed to be taken by CAMit to reduce debt and I became increasingly concerned.
What would happen to our valued customer base of 6,500 engines and 2,100 airframes worldwide if we were left
without an engine manufacturer. Jabiru has been my life’s work and I feel a deep responsibility for our customer
base and my staff.
Jabiru had already experienced early on in our development the failure of one engine manufacturer, KFM. At the
time, this pushed the company to the brink and very nearly spelt the end for Jabiru. Everything Yvonne and I owned
was mortgaged to the hilt to keep the company alive. I had visions of the same thing possibly happening again. It
became increasingly evident that I needed to insulate the company as much as possible to ensure our longevity in
the market should the unthinkable happen. I held grave concerns and sympathy for the situation CAMit was in.
Understandably, CAMit had to look to diversification and obtain other contracts. We were pleased and heartened
when they obtained mining support work. Mining work is extremely competitive however and when the mining
industry also experienced a contraction in demand it was another blow for CAMit. We were saddened, but not
surprised when CAMit then entered the retail market with a look-alike Jabiru engine. Desperate needs leads to
desperate deeds and I understood. I sincerely hoped that CAMit would survive. I am always saddened by the demise
of any form of Australian Manufacturing be it competition or not.
CASA limitations further damaged our market world- wide and if it were not for our astute financial management
and complete absence of debt we would have perished. We have been able to maintain our workforce and carry on.
As with the on-going research and development of any engine there are highs and lows, however at all times I have
endeavoured to build an affordable, light weight, reliable engine and air frame that would enable the average man
to enjoy the pleasures of flight. In this endeavour we have been successful and our brand is now known around the
world. There has been much criticism of Jabiru but I remain fiercely driven and proud of the products we produce as
a small concern with limited funds using many Australian suppliers.
As it stands today we have stock on the shelf and are arranging supply of the majority of components to support
existing engines and spare parts. We are progressively placing the remainder of components with suitably qualified
factories. We will put in our best effort to have a seamless transition for spare parts and engines.
Rodney Stiff
Managing Director