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.

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"

EggHd 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."

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

In article ,
(NeilH011) 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.

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

I believe I saw that article about GM also. When you buy a new car from
GM, you're paying more for UAW pensions than you are for steel.

Moran, Doug - Denison 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."

Mackie hiring Berringher to manufacture all future product ...

Group: rec.audio.pro Date: Tue, Sep 2, 2003, 7:35pm (EDT-3) From:
(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

Eric Toline wrote:


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

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

Oops--haven't met Libby yet. Apologies to her ;

Damn nice stuff, and while rather pricey compared to what has now become
"pro audio," it's quite a bit less expensive than what many of us had
been accustomes to paying for top-flight location sound gear.