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  • lumwilliam
    Senior Member
    • Oct 2009
    • 751

    Daniel Defense

    I ordered my first AR this week, a DDXV, largely on the recommendations I received here at Calguns. I was told about the superior quality and also the lifetime warranty.

    After placing my order (my mistake for waiting till after), I started doing research online about the company, and found that Daniel Defense is an extremely young company, and has recently been in a bunch of trouble. I feel worried to be putting so much faith in the quality of rifles from a tiny company that's been producing a significant number weapons for less than 10 years. On top of that, I'm relying on the 'lifetime' warranty in a company who appears to be having a VERY difficult time financially, despite their US and UK government contracts. I found the below article from July 2009 which paints a bleak future for Daniel Defense. I've got high hopes for this company, and I'm hoping someone out there has got good, updated information about DD that can put me at ease.




    Daniel Defense furloughs most employees

    Posted: July 29, 2009 - 10:30pm

    By Carl Elmore

    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."



    Carl Elmore/Bryan County NowMarty Daniel owns Daniel Defense, where he is president and CEO.

    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."




    [SIZE="1"]Carl Elmore/Bryan County NowA Daniel Defense employee holds an M4 carbine ready for shipment from the company's Bryan County manufacturing plant. The semiautomatic rifle sells for some $1,600.
    Attached Files
    Last edited by lumwilliam; 03-05-2010, 9:50 PM.
  • #2
    Dangerous1
    Member
    • May 2009
    • 263

    Does that mean more deals? jk. Terrible news. It doesn't mean they're going out of business. Just downsizing to keep things rolling.
    I say we take off and nuke the entire site from orbit. It's the only way to be sure.

    Comment

    • #3
      technique
      I need a LIFE!!
      • Jan 2008
      • 10639

      Wow that's old...before they started making a lot of rifles. Welcome to the interwebs.
      California Uber Alles, California Uber Alles
      Uber Alles California, Uber Alles California

      I am Governor Jerry Brown, My aura smiles and never frowns, Soon I will be President...

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      • #4
        titus7
        Senior Member
        • Jun 2008
        • 535

        That article was written in July of last year?? So whats the latest on this?
        Outsourcing and Exposing since 9/26/10

        Comment

        • #5
          THT
          Calguns Addict
          • Mar 2009
          • 5140

          Probably ramped up and put capital in place to meet demand and now the period costs are killing them.
          Ty | 815.246.AR15 (2715) | info@midwestpx.com

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          • #6
            Nor-Cal
            Senior Member
            • Sep 2009
            • 1235

            DD is here to stay

            I highly doubt that I knw many people purchasing their products they jst bein cautious plus according to their site they are hiring people to help run their cnc machines programing of sorts. I belive they might be new to the game but they make great products and are here to stay. Plus I got a complete upper from them ill be takin to the range this weekend.
            Last edited by Nor-Cal; 03-03-2010, 8:15 PM. Reason: missing info
            sigpic

            Comment

            • #7
              Cokebottle
              Señor Member
              CGN Contributor - Lifetime
              • Oct 2009
              • 32373

              Keep in mind that many, if not most modern producers of AR pattern rifle/parts have been around for less than 10-15 years.
              The whole OLL movement literally spawned an industry.

              How long have CMMG, Spikes, Noveske, Stag, Rock River, etc... all been around?

              The good news... it's an AR pattern rifle. Unless you have purchased something proprietary like a GPU, virtually any part from any manufacturer will be compatible with what you have.
              The main thing to watch for is if your upper has M4 feedramps, then the barrel extension must also have them. If the upper does not have them, then either barrel extension will work.
              - Rich

              Originally posted by dantodd
              A just government will not be overthrown by force or violence because the people have no incentive to overthrow a just government. If a small minority of people attempt such an insurrection to grab power and enslave the people, the RKBA of the whole is our insurance against their success.

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              • #8
                Smokinjoe101
                Junior Member
                • Feb 2010
                • 50

                Old news, July 09 ,, they since have follow on contracts and are comming out with new rifles this month. sound like they are here to stay.

                sj

                Comment

                • #9
                  X-NewYawker
                  In Memoriam
                  • May 2008
                  • 5993

                  I looked into this last year -- one of the problems was that when the post Election boom happened, and AR sales went through the roof, DD invested a lot into gearing up to make complete rifles -- while most of the other AR gun manufacturers already had the machines and just had to put on extra shifts -- when the bubble burst, a lot of stores and people cut back and even cancelled their orders. I had one retailer tell me that DD refused to take his order unless he ordered like 12 complete guns -- they NEEDED to sell them.
                  I don't want to see any company go under, but we can't save every one.

                  I like their fore end rails.

                  Comment

                  • #10
                    CHS
                    Moderator Emeritus
                    CGN Contributor - Lifetime
                    • Jan 2008
                    • 11338

                    DD is going strong now and struggling to keep up with demand. X-NY'er had it right. They made a lot of AR parts, but never full rifles, so they got a short-term kick in the ***** due to new tooling up costs.

                    DD is now the one doing the *****-kicking
                    Please read the Calguns Wiki
                    Laws that forbid the carrying of arms...disarm only those who are neither inclined nor determined to commit crimes...Such laws make things worse for the assaulted and better for the assailants; they serve rather to encourage than to prevent homicides, for an unarmed man may be attacked with greater confidence than an armed man.
                    --Cesare, Marquis of Beccaria, "On Crimes and Punishment"

                    Comment

                    • #11
                      E-120
                      Senior Member
                      • Sep 2008
                      • 1664

                      Like I have posted in other forums, ramped up production is a double edge sword. Demand spikes will create down stream supply bubbles. Most rifles should continue to go down in price during the next year. Did I buy last year? Yes, I like most was worried of impending bans and wanted some dream rifles. Now I can continue my collection at lower prices. Life is all ups and down balancing out to a nice average. Sorry for the rant.

                      Comment

                      • #12
                        Eastbayguy
                        Senior Member
                        • Jan 2006
                        • 833

                        If only they had a sale on AR-10 12" rail
                        sigpic

                        Comment

                        • #13
                          aplinker
                          I need a LIFE!!
                          • Feb 2007
                          • 16762

                          I heard Krushchev is putting nuclear missiles in Cuba! Should I be scared?!

                          Google Map of OLL Dealers

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                          Click me-->So you're a n00b and you want to build an AR? <--Click me
                          This post is based on actual events. Some facts may be altered for dramatic purposes. All posts are pure opinion. All persons, living and dead, are purely coincidental, and should not be construed.

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                          • #14
                            lumwilliam
                            Senior Member
                            • Oct 2009
                            • 751

                            Originally posted by Cokebottle
                            Keep in mind that many, if not most modern producers of AR pattern rifle/parts have been around for less than 10-15 years.
                            The whole OLL movement literally spawned an industry.

                            How long have CMMG, Spikes, Noveske, Stag, Rock River, etc... all been around?

                            The good news... it's an AR pattern rifle. Unless you have purchased something proprietary like a GPU, virtually any part from any manufacturer will be compatible with what you have.
                            The main thing to watch for is if your upper has M4 feedramps, then the barrel extension must also have them. If the upper does not have them, then either barrel extension will work.
                            Wow, I did some research and you're right! According to the 1st couple of googled pages I saw, the highly regarded CMMG was started in 2002! Noveske Rifleworks - 2001. We've got a bunch of babies here! So do we still take "lifetime warranty" as a selling point, or just be glad that parts are interchangeable and think of the rifle as a stand alone product?

                            Comment

                            • #15
                              civilsnake
                              Senior Member
                              • Jul 2008
                              • 2261

                              Originally posted by lumwilliam
                              Wow, I did some research and you're right! According to the 1st couple of googled pages I saw, the highly regarded CMMG was started in 2002! Noveske Rifleworks - 2001. We've got a bunch of babies here! So do we still take "lifetime warranty" as a selling point, or just be glad that parts are interchangeable and think of the rifle as a stand alone product?
                              I don't know many gun companies that don't offer a lifetime warranty. But that's the lifetime of the GUN, not the owner. Basically they're covering you for manufacturer defects. But barrels are consumable and have a limited life, as would internal components. If you put 60000 rounds through the gun and the barrel just isn't what it used to be, I don't think they're going to replace it. Honestly, for something like an AR which is honestly pretty simple, a lifetime warranty isn't much different than a 1 year warranty in my book, because you'll identify any problems within that first year.
                              Then another horse PONY came out, a fiery red one. Its rider was given power to take peace from the earth and to make men slay each other. To him was given a huge sword. My kinda guy.

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