Market Overview Appetizer
Welcome to the Thanksgiving issue of the Pilatus Pulse. I’d like to apologize in advance to those who were looking for earth-shattering market data this month. We are going to be brief on the market recap and then spend our time together focused on what we’re all thankful for… family. With that said, we must shed light on the market as it does continue to move and shake.
For the second consecutive month, pricing in the /45 and NG market (78% of PC-12’s) has dropped at an average rate of 2.5% month over month. While pricing has dropped, inventory has increased for the 11th straight month—18 airplanes entered the market in October while only 11 were sold. Late Q3 and early Q4 transaction volume has increased and we’re basically on par with last year. We expect the end of year to lag last year a bit resulting lower year over year totals but still very strong considering the current interest rate and tax environment. Overall, supply & demand market dynamics are in full force and we’ve entered a much more balanced market. As always, if we can shed any additional light on the market, values, or trends, don’t hesitate to give us a call.
Thankful That Aviation is a Family Affair
Put aside market values, trends, buy/sell opportunities, etc. More important than any market dynamic or plot on a graph is the simple fact that aviation brings people together. Whether it’s the opportunity to travel and spend quality time with those we care about, or the opportunity to get home to those we love. Aviation allows us the opportunity to recapture time and moments. This enables us the prospects to grow our business and enrich our personal lives. Many of you reading this today have chosen the PC-12 as your means of executing this exact scenario.
My favorite aspect of our Pilatus ownership group are the people. More so than any other market segment or ownership group I’ve ever been involved with, Pilatus owners are humble, hardworking, and small business owners. They’re the type of folks I’d like to go to a ballgame with or have a beer and talk about life. Most Pilatus owners built their business from the ground up. Some are second/third generation and have taken the ethos their parents instilled in them and taken the family business to greater heights.
We’ve had the great fortune to work with several father/son combinations in recent years. Their businesses range from tire distributors, sheet metal manufacturers, oil and gas marketers, convenience stores retailers and general contractors. All American Made businesses, with stories that need to be told. All these businesses have a few things in common. First, they’re family owned and operated with the patriarch of the family still going to work on daily basis (one is 90+ years old). Second, they value their time and have chosen a PC-12 as their means of acquiring that time.
One of our clients cherishes the fact he gets to go to work with his son daily and also share in their passion for aviation together. “Proud” and “Fortunate” were the words he used to describe this dynamic. “To have someone take the torch from you and carry it forward with a fresh set of legs and someone that understands the responsibility and level of effort it took to create the opportunity” is what makes him proud. “He [my son] doesn’t take it for granted.”
Mark Tate, with T-Top Manufacturing, was able to share in the acquisition of his PC-12 with his son Austin. “As a father, we always want to do everything we can to see our kids succeed in life. Austin’s passion is flying, and since his mom and I enjoy traveling, getting the PC-12 was a very big WIN-Win for all of us.”
“My Dad taught me everything I know. From how to throw a baseball, to how turn a wrench to how stick a landing in a Piper Cub” stated one of our clients. “To get to go to work with him and help lead our company into the next generation is a dream come true. The Pilatus helps us in achieving our goals. I’ll tell you my wife and kids love it as dad gets to come for dinner.”
Recently I was having a discussion with one of our clients about family. He created an analogy which has stuck with me. He said, “My goal in life is to have a crowded table.” I thought, wow, you’re absolutely correct. We all go to work every day to provide for our family. Our goals are all similar, to establish a safe and healthy environment for our kids to grow and prosper. With the ultimate goal being they’ll come back to our table. Aviation isn’t the reason our tables will be crowded but it certainly plays a part in helping us get there.
This Thanksgiving, I think we should all take a moment to really think about what it is that’s important to us. As Bub always says, let’s look at the equal sign and work our way backwards. If our equal sign is our family sitting around the Thanksgiving Day table laughing, crying, and laughing some more then what does it take for us to get the answer to that equation? For some, aviation may play a small role. For others, it’s a major component. But let’s not lose sight or take for granted all the components that help us in achieving our life goals.
All of us at JetSwiss are wishing you a safe, healthy, and happy holiday season.