Daniel Defense furloughs most employees
Daniel Defense, a promising new Bryan County manufacturer only two months past its grand opening, laid off some 30 employees last week and furloughed most of its remaining 100 employees this week.
But owner Marty Daniel said he is confident the company, which makes and markets a tactical-style rifle and a line of special forces weapons accessories, will bounce back.
"We'll come out on the other side of this," Daniel said. "The furlough is just for this week. We may have to furlough again. Our sales are way down so we're having to pull our production down to match our sales. We're doing what we have to do to manage cash and make sure that we're a solid company."
Daniel started Daniel Defense out of another company he owns,
Pooler-based Daniel Overhead Door and Fireplace, in the late 1990s. He had taken up hobby shooting and sought accessories for an M16-style weapon, only to find those he sought weren't available and nobody was interested in making them.
Daniel Defense subsequently won contracts with the U.S. Department of Defense, making an accessory upgrade for the M4 rifle, and with the United Kingdom Ministry of Defense, making a similar upgrade.
Daniel Defense began making its own M4 rifle in January, about the same time it was migrating from
Garden City to its current 37,000-square-foot plant in Bryan County's Interstate Centre industrial park.
There was a strong market for guns earlier this year, and Daniel Defense couldn't keep up with the number of guns being ordered. But that strong demand caused other, larger gun manufacturing companies to flood the distribution and dealership pipeline with their products, Daniel said. And gun sales are historically slow in June and July, he explained.
"We've hit a big drop in sales, and as any manufacturer is forced to do in this situation, we had to lay some people off."
"Just last week, we laid off 26 employees on the production side, and we eliminated three positions on the management side," Daniel said. "It would be our hope that we can hire all of them back. I'm confident that we can hire some of them back."
Daniel said he postponed the layoffs as long as he could: "Layoffs, in my mind, they're very personal. These people's families are involved, and their income, and their way of life. It's not like just turning a machine off. It has real complications to those people and their families."
About 70 workers were furloughed this week.
"I've got some key people here working. I've got some equipment working," Daniel said. "We build (gun) barrels for our weapons as well as building barrels for other manufacturers. Our barrels are still selling very well. So I've got that equipment up running 24 hours a day."
The company still has its government defense contracts. "But unfortunately they are both between orders right now," said Charles Duggan Jr., Daniel Defense vice president for corporate affairs. Three Daniel Defense officials are heading to the United Kingdom this week seeking new orders, he added.
And the company is offering two new versions of its rifle, hoping to capture more of the market for special-forces-style weapons. While its primary M4 rifle sells for some $1,600, Daniel Defense has begun offering the same gun with fewer accessories. "We introduced a new rifle with a $1,200 retail, which will open up a much larger market because of the price point to us," Daniel said.
F.J. "Josh" Fenn, Bryan County Industrial Development Authority executive director, said he's confident Daniel Defense will recover.
"The national economy is affecting everybody. I think Daniel Defense will turn around," said Fenn. "I hate what's going on, but I don't think it's going to be permanent. I think they're going to be back and stronger than ever before."
I know some of these guys personally, and I hope that they bounce back quickly.