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each month, eventually leading to a company-wide total of 13,000 people. To meet projected demand for the new Beechcraft, the company constructed a new building with 110,00 square feet to house manufacturing, production, final assembly and delivery.
During 1952 a mock-up and a pre-production prototype of the proposed T-36A was completed. Then suddenly, and without any warning, in June 1953 the Air Force abruptly canceled the entire program. It was a major financial blow to the company. As Hedrick described the situation, “There was not to be another dollar spent or another rivet driven. So abrupt was the cancellation that, much to the chagrin of engineers and test pilots alike, not one flight in the prototype airplane was permitted” although it was only hours from its maiden flight. In the wake of the T-36A disaster, employment quickly plummeted to only 6,800 workers. “This was an economic disaster that might have collapsed some companies, but under the direction of Mrs. Beech we pulled ourselves together and went forward,” Hedrick said.
To make matters worse, in 1953 the general aviation market remained soft and sales of new Beechcrafts were insufficient to adequately support the company’s facilities and employees. Despite the fact that subcontract opportunities after the war “had not been too successful,” workers soon began manufacturing wings, flaps, ailerons and fuselage sections for other airframe builders. These included The Boeing Company, Bell Helicopter Company, Convair, Douglas Aircraft Company, Grumman Aircraft Engineering Corporation, Lockheed Aircraft Corporation, North American Aviation and the McDonnell Company.
By 1955 these subcontracts were providing Beech Aircraft with sales amounting to $25 million – about 30% of gross sales – and continued to be a reliable source of revenue contributing $36.5 million by 1966. One year later Hedrick was able to report that for fiscal year 1967, total military and aerospace sales approached $75 million and export sales of commercial and military aircraft for the previous year totaled more than $25.5 million. A significant part of that amount was due to the company’s worldwide network of 32 distributors and 48 dealerships in 80 countries.
Hedrick was once asked by a reporter to summarize the Beech Aircraft Corporation in 15 words or less. Instead, he did it in only 10: “Beech Aircraft’s business is the movement of people and products.” From its humble beginnings in 1932, Walter and Olive Ann Beech never strayed from that creed. In 1933 sales amounted to a mere $17,552 and employment stood at 10 people, including Walter, Olive Ann and engineer Ted Wells.
By 1967 sales totaled $175 million and 10,000 men and women were on the payroll.
Hedrick summed up potential of the years ahead this way: “Because of the past we are better prepared today to meet the challenges of the future. We shall continue a planned, steady growth, relying to a great degree upon one of our most precious assets – flexibility – which is the result of diversification of activities.” Although the company has become a part of Textron Aviation, Hedrick’s words still ring equally true today. KA
Notes:
1 In 1968 Frank E. Hedrick was elected president of Beech Aircraft Corporation. He retired in 1982 and died at age 76 in June 1987.
Hedrick did not learn to fly but in 1932 did hold a student pilot certificate.
Ed Phillips, now retired and living in the South, has researched and written eight books on the unique and rich aviation history that belongs to Wichita, Kan. His writings have focused on the evolution of the airplanes, companies and people that have made Wichita the “Air Capital of the World” for more than 80 years.
JULY 2020
KING AIR MAGAZINE • 27