Building an RV airplane in a bad economy
by Bob Collins

(December 13, 2008) -- If it's really true, as we like to insist it is, that aviation is not just a rich man's game and the local airport is not filled with "rich boys and their toys," then it stands to reason that the RV community is undergoing some real pain when it comes to approaching, building, completing, or flying its various RV projects.

Only two people responded to my questionnaire in the last issue , however, seeking the thoughts of those who are facing financial challenges in this economy. So you can judge for yourself where reality lies.

This week, my company, like many others, told its staff it needs to cut $2 million from the operating budget and anyone who's not in denial knows what that means: Layoffs are coming and given the way -- in my case -- media income is disappearing (National Public Radio's deficit went from $2 million to $23 million in two months), it's a pretty safe bet that this won't be the last of it. Any of us who escape the hangman's noose in this round, will have a much more difficult time escaping it the next time around.

That's the day-to-day reality of the working man in this country, right now, and it's a real test to see if aviation really is something that people who aren't wealthy can continue to pursue.

Later this morning (as I write this, which is Saturday December 13), I'll write a large check (Well, large for me, certainly not to him) to my pal at SteinAir for the first of several avionics that will end up in my RV-7A project. I'll cash in an old life insurance policy to pay for it. There's little debt in my project so far, just the $23,000 new engine from Mattituck and the $221 a month hangar rent, but in this economy, debt is debt.

I've reached the "point of no return" stage in the project; the point at which one cannot afford not to finish the RV. Assuming the RV resale market holds -- and it's a questionable assumption -- a project is worth more finished, than still in parts. To protect my investment and my financial situation, I've got to finish the airplane... and soon.

This is the sort of thing that keeps homebuilders up at night. We teeter on the edge of financial disaster. It's an uncomfortable position in the best of economic times. But these are not the best of economic times.

Last week on Rivetbangers, Brian Chesteen posted a sobering message:

My current job situation is looking grim. Our company has been hit by the current economic situation so hard that most likely it is to be closed by the end of the year.

I would like to put out an APB on leads and to start up my job search networking. I have no choice in this current situation other than to go nationwide in my search but understand that I would like to stay reasonably close to my current location here in East Tennessee.

If any of you can assist a guy with the following experience that would be greatly appreciated:

I am an Industrial Automation Specialist that was factory trained on most if not all of the Rockwell/AB product lines. I have spent my working years as a Plant Engineering Manager, Plant Maintenance Manager, Senior Automation/Equipment Engineer and am currently employed as a Product Engineer and Process Controls Specialist for a boiler systems and boiler room equipment manufacturer. My experience in all of these fields has given me a unique opportunity to gain valuable experience with all of AB’s products, Motion Controls/Robotics/Steppers and Servo’s, Sensors and Vision Systems, Bar-coding, Variable Frequency AC/DC drives, etc. I have also integrated many other manufacturer products including but not limited to Siemens, RedLion, Mitsubishi, Bosch, Automation Direct, Prosoft, AMCI. I hold a Rockwell Software Certified Information Specialist rating as well as an RSView32 Certified Instructor certificate. I was also at one time a Wonderware solutions provider/integrator for a short time when I was running my own integration business. My time spent as an automated equipment designer allowed me to gain over 7 years of experience with Solidworks and AutoCAD. I also have experience with IT infrastructure, hold a Microsoft Certified Professional certificate and have knowledge of supervisory control and data acquisition systems and methods. My current employer is standardized on the Siemens S7 architecture along with the WinCC MMI solution.

Any leads or contacts would be appreciated! If you need more info, please PM me!

I have faith and trust that God will take care of my family and I by opening up an opportunity!

Let's hope so.

So what does one do with a collection of unfinished airplane parts in times like this. Dave Rogers posted a comment to the above thread. He keeps building:

I've been laid off and collecting since October. We are "getting by" on what my wife makes and my collecting, but we'd be in real trouble if she wasn't a working mom.

I try to look at the glass being half full, so I welcome the time off for a while. I'm at least getting a ton done on my RV-8

But back to the story from those who sent me their thoughts.

Chris Schmitt of Shallotte, North Carolina is built an RV-9A. I identify him because he's about my age, and he notes he's always been unsure about how he fits into the RV community from a financial standpoint. He's an auto mechanic/machinist, and he's never had tons of money to invest in an airplane.

"I still work for a living at a local auto shop, and my wife is an assistant manager at a food store here in town," he told me. "I have the perception that most homebuilders have better resources than my wife and I, but that being said, I managed to complete my RV-9A with the help of a small home equity loan that we have since paid off. Truth be told, for me, owning my own aircraft has always been an expense that was 'on the edge' of my ability to afford. But like most of us that are all about airplanes, the extra chromosome that I possess makes it impossible for me to suppress the urge to fly. The chance to build one myself, and get an absolutely splendid aircraft to fly at the end of it all, is an opportunity that is hard to resist."

Chris says taking into account the benefit of being able to maintain and inspect his own airplane makes it affordable for him to keep. He says RV resale values have been good so the RV seems like a smarter investment compared to other routes to airplane ownership. As several people noted on Van's Air Force a few weeks ago, it's also an investment that's held its value better than many retirement accounts. So far.

"Little did I know how much I would enjoy the building process, and how much I would miss that heap of sheet metal in my garage constantly calling at me to spend some quality time with it," he says, reminding me that that's another article I've got to write one of these days. "So, I decided to build another one. What the heck? So here we go again. I work at a job that pays straight commission. No guarantees, seasonal swings, and an economy that has scratched a few digits off of my bottom line. My wife has had her hours cut. Good times are in remission for sure. But we have always been smart investors, worked hard, and have never been the type of folks that had a desire to live above their means.(except for owning an airplane) No mortgage, no credit card bills. We can still afford to direct some cash to an airplane project. I may have to stall several times to let the cash cow catch up, so I am ready for that if it happens."

" My new RV9 project started with a commitment to purchase a kit from another builder who is selling out," he says.. "A nearly completed tail, and a wing kit that hasn't been started. I pick it up next weekend. This project will have a tight budget, and will use a used O-235 and wood prop. A simple, and very light taildragger that will be affordable to keep and fly. Buying another builder out has let me step in to another project at a considerable savings. I can take my time to scrounge what I need, and stop and go as required to let the money that it takes become available. How long till it flies?? No idea. Bottom line, in my opinion, if you have a passion for flying, or one to build, or both (like me}, it is never going to go away. There is no cure for this. Well documented attempts to treat the illness have met with little success. Keep at it. Build as you can, as time and money will allow. Don't equip your plane with stuff you don't really need. Hard times are a great excuse to keep the airplane light and simple, a decision you will never regret."

"Take stock in the fact that when you are at the end of the active, ready to advance the throttle for your first flight, you will be flying an airplane worth at least what you have in it. Most GA owners won't be able to say that with any certainty. For me, It's not about the destination, it's the journey that makes it worthwhile."

And here's the reality that must be factored into any talk of a bad economy -- things will get better. Let's suppose you decided to shelve your project during the lean times. What are you left with when times get good again?

Brian Carroll of Montana, works for the state government, making electricity out of water. Government is one of the areas of the economy that's still growing so job stability isn't much of an issue. And in Brian's case, "the kids are grown and gone, so no expenses there. But my wife went back to college and hasn't been working. What does all this mean? We live a average single paycheck middle-income life. The average middle-income people do not have airplanes! In order to afford building and then maintaining an airplane, we need to move up the ladder a few rungs. Our little retirement accounts have taken a beating lately, so that must be restored before "fun stuff". My wife will be done with school soon, so hopefully she can find gainful employment."

So Brian is faced with some unknowns.. What to do and when to do it? Like most other people, Brian believes things are going to get worse before they get better. "We have adjusted our spending significantly in the last year or so. Less trips, less dinners out and a lot less aviation. I don't dwell on the potential uncertainty, I try to be positive and live within my means. I'll keep plugging along on the RV build, making small purchases while saving for the bigger ones. The upside of saving $$$'s for the big items, is it gives us a larger cushion against this economic brick wall we're up against. I have a fairly rigid budget and have made my decisions for 'what I want,'" Brian said.

All in all, it's a time to get back to basics. Maybe some RV projects won't be able to compete for the jaw-dropping reaction at Oshkosh, but so what? Builders of RV airplanes are getting back to reality.