Great Depression Era
How Economic Crisis Reshaped Consolidated Aircraft
The Great Depression (1929–1939) was one of the most defining periods in the history of Consolidated Aircraft.
For many aviation companies, the economic collapse meant cutbacks, bankruptcy, or complete disappearance.
For Reuben H. Fleet, it became a period of survival, reinvention, and strategic repositioning that ultimately reshaped the future of American aviation.
Shrinking Budgets, Rising Pressures
As the U.S. economy collapsed, federal military spending contracted sharply.
This hit aviation manufacturers especially hard:
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new aircraft orders slowed or disappeared
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experimental programs were canceled
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private financing evaporated
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competition for the few remaining contracts intensified
Fleet knew that Consolidated could not survive by relying solely on Air Corps procurement during the worst years of the crisis.
To endure, the company needed:
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cost-efficient production
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diversified customers
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new revenue streams
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better manufacturing facilities
The Depression forced Fleet to rethink nearly every aspect of how Consolidated operated.
Pivot Toward Commercial and Foreign Business
With American military purchases drying up, Consolidated pursued alternative markets:
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commercial airliners and transport aircraft for airlines that were still expanding
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trainers and flying boats for the Navy, which maintained modest procurement
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foreign military sales, particularly to Latin America and Europe
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airmail connections, which Fleet was already deeply involved with
This diversification kept the company afloat at a time when many competitors closed their doors.
Innovation Driven by Necessity
Economic hardship created pressure to focus on:
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modular construction
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standardized components
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designs that could serve multiple roles
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cost-efficient manufacturing processes
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aircraft that required fewer expensive materials
The Depression didn’t slow Consolidated’s engineering output — it sharpened it.
The ideas born during this period directly contributed to later successes such as the PBY Catalina and B-24 Liberator.
The Push Toward a Better Manufacturing Base
Fleet recognized that if Consolidated was to survive — and eventually thrive — the company needed:
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more modern factories
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more efficient production lines
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a location with good weather for year-round test flying
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supportive local government
Buffalo had served its purpose, but the Depression made its limitations clearer than ever.
That realization played a major role in the decision to relocate to San Diego, where Fleet saw the opportunity to build an aviation powerhouse.
Preparing for the Coming War
As global tensions rose in the late 1930s, many American manufacturers were unprepared for sudden military expansion.
Consolidated was not one of them.
Fleet’s Depression-era strategy — diversification, efficiency, and relocation — left the company:
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financially stable
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technologically advanced
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strategically positioned
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industrially ready
When WWII began, Consolidated was prepared to scale production faster than almost any other manufacturer.
This readiness is one reason the company became:
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the world’s leading producer of flying boats
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the creator of the B-24, the most-built heavy bomber in history
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a central pillar of American wartime aviation
Legacy of the Depression Era
The Great Depression nearly crushed the aviation industry, but Reuben H. Fleet turned adversity into opportunity.
The strategies he adopted during the crisis laid the foundation for Consolidated’s future dominance.
The Depression era was not merely a time of survival —
it was the crucible in which one of America’s greatest aviation companies was reforged.