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[Ivan Beaver]

I wonder who is next-------

http://www.lsionline.co.uk/news/story/Music-Group-proposes-Tannoy-redundancies-and-plant-closure/O6ECMB

[Stephen Kirby]

Probably the bulk of Tannoy's work is in consumer audio.  A lot of the EU driver manufacturers have been gobbled up by Tymphany in China, so unless you need a real specialty driver (as in high power SR) it unfortunately makes sense to do consumer product there.

[Justice C. Bigler]

Next up: Midas proposed as redundant and their U.K. offices and plant will be closed. Manufacturing moved to China.

Now I really am going to have to respec two whole buildings of system designs that had Tannoy speakers and Lab.Gruppen amp in it.

[Keith Broughton]

I wonder who is next-------

http://www.lsionline.co.uk/news/story/Music-Group-proposes-Tannoy-redundancies-and-plant-closure/O6ECMB

Not surprising in an economy where low price is the driving factor.

[John Roberts {JR}]

This is just the natural progression for a maturing industry.

Be better, or cheaper, or gone.

JR

[Scott Holtzman]

This is just the natural progression for a maturing industry.

Be better, or cheaper, or gone.

JR

I don't understand Justice's comment.  He always seems to be a level headed guy.  If the Tannoy was the right speaker for the project, met the requirements and price point why is it now not the right box just because MG is making a business decision to leverage economies of scale? 

Business 101, to get a return on the investment they have to leverage economies.  The question is can they do it without damaging the brand?  That however doesn't impact a completed design.  Seems like an emotional decision that will not in any way effect Music Group but could put a project in jeopardy.

Scratching head....

[Bob Leonard]

Here's how it works. Bit by bit the "redundant" facilities and processes are moved to the lower cost location until at some point all production and staff are relocated to that site(s). Uli's goal will be to consolidate all of his companies under the same roof in the same low overhead country. However, depending on that particular countries economy that plan can either work very well, as it does when costs and import tariffs favor the country of origin, or fail in a huge way should that countries economy tilt in the other direction either due to higher manufacturing costs or tariffs imposed by the countries to which the goods are exported. 

[Robert Lofgren]

Next up: Midas proposed as redundant and their U.K. offices and plant will be closed. Manufacturing moved to China.

Well, midas helped out spec'ing the factory plant in china so their stuff could be built there and it is my understandng that midas stuff already is built there...

[John Fruits]

Here is a view from across the pond:
http://www.blue-room.org.uk/index.php?showtopic=67064

[Stephen Swaffer]

My county has roughly 20,000 people, we are losing 200+ very good manufacturing jobs to Mexico-move has been in process for a year to be completed this fall.  The initial reaction is to complain about the company moving its facility to Mexico; however, I my understanding is that one customer-who was responsible for 60-70% of the sales-said "give us an 18% cost reduction or we will move to xyz for the product we buy from you."  Either way the production-and jobs-were going away.  Kind of hard to blame the company for making the best choice for its shareholders.

Consumer audio and situations like Tannoy its not so easy to see because it is not one customer but rather a block of customers-but when too many in the group decide that price matters most the effect is the same.

[ProSoundWeb Community]