TubeNet

I received a forwarded email, so this is not first hand information, saying that Holton was closing the factory in Elkhorn, Wisconsin as of mid- July. Production at the Kenosha factory had been suspended for some time and that factory will now close.

So as to not violate any confidences, I am editing out references to the sender's name and some specific information but the body of the email I received follows:

On June 2nd, we got the word from Conn-Selmer VP John Stoner that it was decided to close our factory in Elkhorn, WI on Aug. 1st. Our last day of production will be either Thursday or Friday, July 17 or 18.

The products we made were mostly French Horns, but we also made the Harvey Phillips B-flat and C Tubas, the Holton fiberglass and brass Sousaphones, Holton and Leblanc Arturo Sandoval Flugelhorns and we always made the valve trombones and Maynard Ferguson Superbone (TR 395) since I strated working there.

After the Martin factory was closed 4 years ago, we started building the Holton and Martin Trombones again. We also built the 183 series Bach flugelhorns and the new Bach LT 142 BO Tenor Trombones ....

Conn-Selmer announced last December that they would close the Leblanc factory in Kenosha, WI on July 31st (they have already stopped production) and the Leblanc factory in La Coutrois-Boussey France will also be closed soon. The fact that this is coming on the day of the employee stock purchase ... this was planned quite some time ago.

I was surprised to learn that Bach tenor trombones were built by Holton. I had several visits to the Elkhorn plant while my tuba was being built and I met many skilled craftsmen who cared about their work. Tuba building was a low priority for management but the guys on the floor were terrific. A sad ending and, as always, the lower you are on the totem pole the harder it hits you.

It was also indicated that future models of Holton instruments would be made in Asia. 1
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1 In the future almost everything will be made in Asia.

Alex C wrote:I was surprised to learn that Bach tenor trombones were built by Holton.

During the Bach strike in Elkhart, Conn Selmer began production of a Strad trumpet in Eastlake (model 182) and a trombone in Elkhorn (model 142).

Just another typical example of the cyborg at work: you will be assimilated; resistance is futile.

iiipopes wrote:Just another typical example of the cyborg at work: you will be assimilated; resistance is futile.

As much as my sympathies go to the skilled workers, I have to ask the question: If what they do is irreplaceable and marketable, why don't they buy the factory from Conn-Selmer and start up a new operation? If it has a good business plan, they should be able to find investors. And since there is no external corporate overhead to feed, their costs should be lower.

With the dollar weak, their costs should be more competitive, even with Asia, especially if they focus on a quality model instead of a production model as they once did.

Corporations usually avoid risk sensibly but are not often visionary or particularly creative. Small businesses are often visionary and creative, and more willing to take risks and more able to sell that risk to investors. Vision and creativity are needed here. Is there anyone there prepared to exercise it? It's not an easy road, but there are lots of footprints on it. One example (also from Wisconsin, and also in an industry with overwhelming Asian competition at the lowest price points) is Trek Bicycles.

Rick "who bought a Holton at a high price point for a battered, school-abused tuba, because of the inherent quality" Denney

I just read an interesting article today that predicted with the rise in fuel costs, that Asian-produced goods are going to be so expensive to import (transportation costs) that the more expensive local labor will be more cost-effective. Of course this would take time for market forces to bring about, but it's an interesting POV.

MA

MaryAnn wrote:I just read an interesting article today that predicted with the rise in fuel costs, that Asian-produced goods are going to be so expensive to import (transportation costs) that the more expensive local labor will be more cost-effective. Of course this would take time for market forces to bring about, but it's an interesting POV.

MA

Could be a nice turn around...some day

Rick Denney wrote:

iiipopes wrote:Just another typical example of the cyborg at work: you will be assimilated; resistance is futile.

As much as my sympathies go to the skilled workers, I have to ask the question: If what they do is irreplaceable and marketable, why don't they buy the factory from Conn-Selmer and start up a new operation? If it has a good business plan, they should be able to find investors. And since there is no external corporate overhead to feed, their costs should be lower.

With the dollar weak, their costs should be more competitive, even with Asia, especially if they focus on a quality model instead of a production model as they once did.

Corporations usually avoid risk sensibly but are not often visionary or particularly creative. Small businesses are often visionary and creative, and more willing to take risks and more able to sell that risk to investors. Vision and creativity are needed here. Is there anyone there prepared to exercise it? It's not an easy road, but there are lots of footprints on it. One example (also from Wisconsin, and also in an industry with overwhelming Asian competition at the lowest price points) is Trek Bicycles.

Rick "who bought a Holton at a high price point for a battered, school-abused tuba, because of the inherent quality" Denney

So what your saying is......we at TubeNet should buy the factory and work in a happy, tuba filled world of which we can only dream of......

(this is my 3rd 'sarcastic' comment in 5 minutes.... I must be in a really good mood!!!! )

Rick Denney wrote:why don't they buy the factory from Conn-Selmer and start up a new operation? ... Corporations usually avoid risk sensibly...

and so would be unlikely to sell to anyone that might offer even the slightest competition! I would imagine that any pension buy-out would also include a non-competition clause...

windshieldbug wrote:

Rick Denney wrote:why don't they buy the factory from Conn-Selmer and start up a new operation? ... Corporations usually avoid risk sensibly...

and so would be unlikely to sell to anyone that might offer even the slightest competition! I would imagine that any pension buy-out would also include a non-competition clause...

Not necessarily. It's a matter of how you define competition. It would be possible for a revived Holton factory to pursue a different quality/price model and still not directly compete with Conn-Selmer.

On another forum, I saw a comment where the person in charge of this factory had made the decision not to restart production of 6/4 tubas in favor of focusing efforts on the 3/4 Harvey Phillips model. That tuba has not enjoyed a reputation for construction quality (any more than the 6/4 tubas did) and that may be figuring into the demise as much as anything. Also, that tuba doesn't seem to me to appeal to the current market broadly. Adopting a quality model requires investement, and also commitment from everyone in the organization, top to bottom. But quality is only part of it; you also have to listen to the market and build what people want to buy. The three important questions in any business venture are: What do we know how to do better than anyone? What do we want to spend nights and weekends doing? What do our current and potential customers want (which is also: will they pay for our costs and profit)? Great business models can be built when those three questions can be honestly affirmed.

Rick "wondering how Boehm and Meinl is doing, having made the production-to-quality transition" Denney

Here is the press release from Conn-Selmer dated 6-4-08 concerning relocating the Holton operations to the Eastlake, Ohio plant:

Conn-Selmer Production Shifts Facilities

Conn-Selmer, Inc. announced this week that production in its Elkhorn, Wisconsin brass instrument facility is being relocated to its Eastlake, Ohio manufacturing plant. In a separate move, the company also announced that instrument production at its G. Leblanc facility in La Couture-Boussey, France is moving to its Woodwind facility in Elkhart, Indiana. The Elkhorn facility will be closed and the French building has been sold. Both actions take advantage of the ability to focus resources and increased capacities in its Eastlake and Elkhart locations.

The move from Elkhorn, Wisconsin to Eastlake, Ohio is centered primarily on the Holton brand French horn and low brass production. The Eastlake plant is well-known for its production of these instrument categories under the C.G. Conn and King brand names. The addition of the Holton product to Eastlake production takes advantage of the quality expert craftsmanship already established there.

The company’s "Woodwind Center of Excellence" in Elkhart, Indiana continues to grow, accounting for all production of U.S.-made flutes, piccolos, double reeds and clarinets, including Leblanc by Backun professional clarinets. "The level of skill and expertise at this facility continues to improve through its utilization of modern manufacturing techniques, one-piece flow, lean manufacturing, and the team’s commitment to continuous improvement," said John Stoner, president and CEO. "Focusing our expertise in a single facility allows for better utilization of assets and better sharing of best practices. Advanced technologies have been put in place along with quality assurance measures that provide superior product performance for professional, intermediate and student instruments produced in Elkhart."

Leblanc, along with Holton and other brands, was acquired in 2004. In 2006, the Company introduced Leblanc by Backun professional clarinets; the clarinet of choice for the finest professionals including Ricardo Morales (Philadelphia Orchestra), Anthony McGill (New York Met) and well-known clarinet soloist Eddie Daniels. This year, the company is introducing its Leblanc Bliss student clarinet line with young international clarinet soloist, Julian Bliss.

Conn-Selmer, a subsidiary of Steinway Musical Instruments, Inc., is the largest manufacturer of band and orchestral instruments and accessories in the United States. To contact Conn-Selmer, write to P.O. Box 310, Elkhart, IN 46515-0310 U.S.A. or visit http://www.conn-selmer.com" target="_blank" target="_blank" target="_blank.

Rick Denney wrote:

iiipopes wrote:Just another typical example of the cyborg at work: you will be assimilated; resistance is futile.

Vision and creativity are needed here. Is there anyone there prepared to exercise it? It's not an easy road, but there are lots of footprints on it. One example (also from Wisconsin, and also in an industry with overwhelming Asian competition at the lowest price points) is Trek Bicycles.

Rick "who bought a Holton at a high price point for a battered, school-abused tuba, because of the inherent quality" Denney

But as you probably know, Rick, fewer and fewer Trek models are made in Wisconsin and more and more come from Asia. I own two Wisconsin-made Trek road bikes, but if you look for equivalent bikes now in Trek's model line, they are both Chinese, even the less expensive carbon fiber models. The US is losing this manufacturing also, but slowly. The only other large American bike maker left is Cannondale, and it's the same story there. I own a Pennsylvania-made Cannondale mountain bike, but that model is now made in Asia. And Cannondale was sold to a company (Pacific) that doesn't do US manufacturing for any of their other products. And, by the way, if you talk to your local bike shop about the 2009 models, most will increase in price by 15 to 20%. So much for the cost savings of Asian manufacturing.

Even with the weaker dollar, as long as the Chinese yuan is tied to the dollar, manufacturing continues to go offshore. Some of us old folks care about this, but I'll bet that most Americans don't. If they did, then there might be less of a shift to offshore manufacturing.

At the moment, I have one US-made and one German-made tuba. As the prices for new models continue to rise, I'll probably own these two for a long time.

Bill Anderson