mackie down the tubes

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crosstudio

crosstudio

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mackie's founder has stepped down as chairman to concentrate on 'product development'.

in addition, the company is outsourcing its labor to china.

from an article in the seattle times:
But cutting jobs isn't the only cost-cutting measure the company has been pursuing. During the third and fourth quarters of 2001, the company reduced salaries and capital expenses and closed some offices, its annual report says. It also is trying to decrease its sales costs by finding cheaper sources for parts and is considering selling off certain operating assets, this year's second-quarter report says.

here's the full article:
seattle times article
 
Cross, everyone is leaving Seattle. Boeing already left to Chicago and has been slowly selling off property along with laying off 30,000 people in the last year or so. Genie Industries is moving to Moses Lake, a small hick city on edge of nowhere. The local governments have not given any relief tax wise to keep alot of companies here. Its just too costly to manufacture anything where housing is out of reach of the employees and the environmental laws are so strict because of the Salmon and Spotted owls. If CEO's would just invest some of the money they make back into the company it would be better. Pay the people less, avoid the taxes and charge the customer more so that they can make more money for pedaling an inferior product., Oh lets just build it where there are no taxes, and people make 1/2 of minumum wage, slap a made in the usa sticker on it and call it good. We all be speaking chinese soon and so ya better brush up on chinese classes. Right now we have the highest unemployment rate in the nation and it looks like we will be there a while...

SoMm
 
Yo SonOfMix:

You must be in Seattle or nearby. I spent a year in Seattle as a guest of the US Navy @ Pier 91 which, of course, has long been decomissioned. [Navy way of saying, downsized.]

Beautiful city and surrounding country.

Sorry to hear about the state of the economic situation there. I used to watch the first test Boeing 707 fly about every day when I reported for work. It had these big orange stripes on the wings -- easy to spot.

When I flew into Seattle for the first time the sun was just rising and striking the side of the big mountain there -- Mt. Rainier -- the view was so great that the pilot made a circle so the folks on the opposite side of the plane could witness the beauty of nature and the cosmos.

Looks like Mackie ads will slow down in EM.

Green Hornet

:D :D :cool:
 
although i'd prefer for the maufacturing to be conducted here in america by americans, i recognize that moving manufacturing to a country where labor is cheaper is something that many american companies are doing (have done).

i'm more miffed about the founder's new role, and the company searching for cheaper components. fact is, i doubt the company was purchasing components that were purposefully more costly without a engineering benefit. so cheaper parts is just that... inferior parts.
 
It really isnt the " right" thing to do sending work elsewhere, no matter how cheap. People oughtta try and help their communities first I think.

I really really doubt mackie is losing much lately, taking the economy into account. They oughtta be able to ride this out. Their news pages and the buzz around isnt too specific about this. Does anyone have some figures of what exactly is causing Mackie to do this ?
 
Hey...........it's the same old thing. A need to continually show growth to over-expectant investors. It ends up taking priority over the traditional concept of "make a product and make a profit on it". A mere profit isn't enough......you have to show growth. And it's a load of crap that we've allowed our economy to become based on stock profits rather than simply making profits as a company.
 
someday, somehow, were gonna have to realize, that the economy needs to be based on something tangible. I still dont understand why a stock can possibly be even worth the paper its printed on.

If a stock pays 1.00 $ every quarter, yet costs you 10,000 a share, where is the value? Youd be long dead before you ever made your money back. So instead, you find someone even dumber than you, to pawn it off on for MORE money.

This is a frightening system
 
its first year as a publicly traded company Mackie made 11 million in profit.

they built a new manufacturing facility (debt).

they bought several other small companies in a growth effort (debt).

then when the american economy turned sour Mackie had racked up much debt and us musicians have slowed down our purchasing habits.

they've lost money for the last 3 years.

good times don't last forever, you have to mantain viable cash positions to weather the storm.

$206.5 million dollars in sales, and you still can't turn a profit???
 
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