Mackie hiring Berringher to manufacture all future product :)...

[Jazz-John]

>
> p.s. I find it VERY interesting that the opening statement does not
> have the word "manufacturer" in it.
>
>
>
> To Whom It May Concern,
>
> The purpose of this letter is to make you aware that Mackie has
> entered the final stages of an important transition. We believe this
> transition will further our position as a world-class developer,
> designer and marketer of professional audio products.
>
> For several years, Mackie has been laying the groundwork to outsource
> the assembly of a number of high-volume products currently produced in
> our Woodinville, Wash. headquarters. This transition will allow Mackie
> to bring more cost-effective and competitive products to market than
> ever before, while also allowing us to invest more resources in key
> areas such as Product Development, Engineering and Industrial Design.
>
> As a result of this new focus, Mackie has issued notices to
> approximately 200 employees in Woodinville manufacturing who will be
> directly affected by this transition. It is important to understand
> that cessation of Woodinville manufacturing is the next phase in a
> very important and deliberate transition, and not a scaling of
> workforce to revenue, as industry rumors may suggest.
>
> Manufacturing employees affected by this change will receive
> completion bonuses and severance packages based on years of service.
> They may also be eligible for federal help in the form of extended
> unemployment benefits and retraining benefits.
>
> As we move forward, Mackie will seek out the best possible resources
> around the world to provide manufacturing expertise equal to our own
> design and engineering talents. In some cases these resources will be
> internal; in some cases they will be sub-contractors carefully
> selected for their ability to meet our world-renowned quality control
> standards.
>
> In the coming months, Mackie will introduce an unprecedented range of
> new products. These products aim to redefine the pro audio industry
> with truly amazing features and value. These new products are also a
> clear indication of what we will be able to accomplish as a result of
> our new structure.
>
> Mackie remains committed to the creative horsepower of our
> Engineering, Product Development, Industrial Design and Marketing
> teams, as well as the pace-setting standards of our Sales, Sales
> Admin, Support and Service teams. All of these functions will remain
> fully active at the company's headquarters in Woodinville.
>
> We feel that we have turned a significant corner at Mackie and are
> once again on the path to growth. We look forward to building on the
> passion and product development talents that have made Mackie an
> industry leader for nearly 15 years.
>
> Sincerely,
>
> Jamie Engen
> President and CEO
> Mackie Designs Inc.

[Scott Dorsey]

>> The purpose of this letter is to make you aware that Mackie has
>> entered the final stages of an important transition. We believe this
>> transition will further our position as a world-class developer,
>> designer and marketer of professional audio products.
>>
> p.s. I find it VERY interesting that the opening statement does not
> have the word "manufacturer" in it.

It's sad but true. It's just not cost-effective to run a manufacturing
operation in the US if your goal is to compete on the basis of price,
like all consumer electronics folks do.

Contracting manufacturing to an offshore operation and keeping design
and distribution in the US is the only way for US companies to compete
while keeping control of the product, unless they want to move into a
total different sort of market where price isn't the one overriding
factor for sales.
--scott
--
"C'est un Nagra. C'est suisse, et tres, tres precis."

[EggHd]

<< It's sad but true. It's just not cost-effective to run a manufacturing
operation in the US if your goal is to compete on the basis of price,
like all consumer electronics folks do. >>

You mean it isn't just California? Horror!



---------------------------------------
"I know enough to know I don't know enough"

[Scott Dorsey]

EggHd <egghd@aol.com> wrote:
><< It's sad but true. It's just not cost-effective to run a manufacturing
>operation in the US if your goal is to compete on the basis of price,
>like all consumer electronics folks do. >>
>
>You mean it isn't just California? Horror!

California isn't so bad because you can contract some of it out to
companies in Mexico. That's a great thing especially if you need custom
magnetics. A lot of the last folks mass-producing tape heads were operating
out of the San Diego area, with much of the labour-intensive assembly being
done in Tijuana.
--scott
--
"C'est un Nagra. C'est suisse, et tres, tres precis."

[NeilH011]

>It's sad but true. It's just not cost-effective to run a manufacturing
>operation in the US if your goal is to compete on the basis of price,
>like all consumer electronics folks do.

I think it's getting to a point where in ANY industry, it's all about price -
save for certain upscale product types & other niche-oriented items. I noticed
an article the other day that mentioned General Motors is now the world's
largest HMO - their healthcare benefits paid out to employees are so high that
one Wall St. analyst described them as: "an HMO that basically only sells cars
to finance their healthcare plan". Their annual pension benefits (read:
"liabilities") also exceed the GDP of a number of countries around the globe.
It's damn expensive to build anything in America anymore.

NeilH

[Moran, Doug - Denison]

On 27 Aug 2003, Scott Dorsey wrote:

> It's sad but true. It's just not cost-effective to run a manufacturing
> operation in the US if your goal is to compete on the basis of price,
> like all consumer electronics folks do.
>
> Contracting manufacturing to an offshore operation and keeping design
> and distribution in the US is the only way for US companies to compete
> while keeping control of the product, unless they want to move into a
> total different sort of market where price isn't the one overriding
> factor for sales.
> --scott

These locations are being called "Low Cost Regions." The bad part is that
the workers being laid off are not finding jobs that replace their old
positions, in terms of pay and benefits. These folks are not going to
have the money to buy goods or services regardless of what their lower
cost is.

As far as companies using Electronic Manufacturing Suppliers (EMS) - once
the product leaves the company that developed it and goes to an EMS, the
proprietary materials and/or manufacturing methods are wide open for
anyone else to use, regardless of the agreements in place. We've seen it
in telecommunications.

And quality control, cost containment? It is tough to do, and no one has
figured out how to do it yet. It is all conference calls and multiple
e-mails to fix the problems.

This continues to unfold. We'll see who survives.

Doug

[Scott Dorsey]

Moran, Doug - Denison <morand@max.cc.denison.edu> wrote:
>
>These locations are being called "Low Cost Regions." The bad part is that
>the workers being laid off are not finding jobs that replace their old
>positions, in terms of pay and benefits. These folks are not going to
>have the money to buy goods or services regardless of what their lower
>cost is.

Absolutely, but those folks are also the consumers who are driving this
rush offshore, by demanding cheaper and cheaper products that do more.

If the market actually wanted products that worked and lasted, there
would be a demand for people who can make products that work and last.

>As far as companies using Electronic Manufacturing Suppliers (EMS) - once
>the product leaves the company that developed it and goes to an EMS, the
>proprietary materials and/or manufacturing methods are wide open for
>anyone else to use, regardless of the agreements in place. We've seen it
>in telecommunications.

Yes, and it's even worse in China because of the general attitude toward
intellectual property there, and the lack of intellectual property laws.
You cannot keep a trade secret process because the EMS staff will not keep
it secret.

>And quality control, cost containment? It is tough to do, and no one has
>figured out how to do it yet. It is all conference calls and multiple
>e-mails to fix the problems.
>
>This continues to unfold. We'll see who survives.

The same thing will happen that happened in the sixties and seventies with
the move to outsource to contract production in Japan or to rebadge products
from Japanese manufacturers. And it won't be pretty in the US, but it'll
be a great thing for China the way it was for Japan.
--scott
--
"C'est un Nagra. C'est suisse, et tres, tres precis."

[Kurt Albershardt]

Scott Dorsey wrote:

>>> The purpose of this letter is to make you aware that Mackie has
>>> entered the final stages of an important transition. We believe this
>>> transition will further our position as a world-class developer,
>>> designer and marketer of professional audio products.
>>
>>
>> p.s. I find it VERY interesting that the opening statement does not
>> have the word "manufacturer" in it.
>
>
> It's sad but true. It's just not cost-effective to run a manufacturing
> operation in the US if your goal is to compete on the basis of price,
> like all consumer electronics folks do.
>
> Contracting manufacturing to an offshore operation and keeping design
> and distribution in the US is the only way for US companies to compete
> while keeping control of the product, unless they want to move into a
> total different sort of market where price isn't the one overriding
> factor for sales.

See Sound Devices--a really neat operation run by a couple of great guys.

[Eric Toline]

Re: Mackie hiring Berringher to manufacture all future product :)...

Group: rec.audio.pro Date: Tue, Sep 2, 2003, 7:35pm (EDT-3) From:
kurt@nv.net (Kurt=A0Albershardt)

See Sound Devices--a really neat operation run by a couple of great
guys.<<<<<<<<<<<<<<<<

Matt, Jon, Jim & Libby. Three guys & one gal actually.

Eric