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This is the death spiral of quality handmade hardware. Software eats everything.
Although it has happened in the past without software being involved - the CBS purchase of Fender comes to mind, heralding a period where CBS was synonymous with lower-quality guitars.
Software is definitely one of the main drivers of the death of hardware now, but at the root of hardware decline are people who only have their eye on the balance sheet. Jack OâDonnell is unlikely to be an exception to this.
Iâm going to guard my ATC loudspeakers with my life. They feel like one of the last quality manufacturers.
All the best to the laid off Moog employees.
Would people be happier about this if Behringer had bought Moog instead? Because Moog absolutely would've gone out of business if no buyer had stepped up anyway. It's the end of an era. There will always be room for specialized synth hardware (for example, see Melbourne Instruments and their Nina synth), but it'll be smaller shops handling these things.
We'll see how they do, but you're probably right that there were only a few options, and which devil were they going to dance with.
And now the market for used Moog hardware goes crazy due to the increasing scarcity of products
and reverence for the brand that was. Collectors and speculators will drive the rush to scoop up inventory.
They make very little music except for Joe Bonamassa.
Should probably be more concerned that this means moog will be part of the next Behringer. A Behringer with the same capacity but better brand value. They'll charge enough to be accessible, but not enough to isolate the user base. Quality and originality will likely take a hit, and more plugins will likely come out.
In terms of plugin designers, I'll bet we'll see knockoffs of the entire current Moog lineup.
The future is sometimes all too easy to predict. Jack O'Donnell will loot the Moog brand by selling cheap oriental stuff under the Moog name. He'll make a lot of money at first, but eventually consumers will catch on and the brand will be totally destroyed.
It reminds me of D'Angelico. When he was alive it was the most elite custom guitar you could buy. Now it's just another factory guitar made in who knows what country.
This is sickening and disgusting. That letter from the Moog president said they would continue manufacturing in Ashville. So either he was lied to or was lying.
If there was some kind of oral agreement about the company staying in the US in the cosy fireside chat the president had with Jack O'Donnell about how much Jack loves Moog, Moog management were not smart enough to get a guarantee to that effect in writing. And that is on their heads. The staff must be furious. Of course, anyone with a bit of sense would have known that the rosy picture painted in that 'yay great we're being taken over by inMusic' letter was likely to turn out to be a load of old nonsense. The only upside is that hopefully other companies will be sure not to make similar mistakes. A disaster for the workers and a PR disaster for one of the previously most loved and most important brands in the entire modern music making space. Really makes me angry.
Probably the latter.
The whole employee owned thing was always a bullshit move by him. Not saying it was intentional to rip off the employees but he built an escape plan for himself in that.
That sounds more likely tbhâŠitâs hard to imagine he got to where he was if heâs really that naive, sadly
The total package that came with my Sound Studio 3 was the best I have had for any piece of hardware in recent years. Proper perfect bound manuals for the DFAM, Mother 32 and Subharmonicon, a patching card game, two rather beautiful posters, an ideas patch book⊠the sense of care, commitment, and fun was palpable. Necessary ? No. Lovely? Most certainly, yes. Iâm just glad I sprung for them when I did. I donât anticipate such care for Moog products in the future. Behringer might not be the biggest bad out in hardware land after all.
At least Behringer is run by someone who cares about music to some extent. Never seen any evidence that Jack OâDonnellâs motives come from a love of music.
If you may choose between Moog going bankrupt because they lost ability being competitive on market (because of monstrous production expenses) and option of cancellong their US productio, keeping just design/developement, oursourcing production to asia - which would make possible literally keep brand in existence âŠ
What option would you choose ?
Because i believe this is what happened here.
Btw. Modal Electronics went insolvent recently too. Itâs reality of this world, no matter how great product you have - either you raise prices very hard (what Elektron did), OR you oursource production to China. Inflation which happened in recent 2 yeaes thanks to irresponsible printing of new money by central banks hit us hard.
You may not like it but it is reality. Pretty sure it was not nice move for Moog employees and i feel sorry for all people who lost their jobs. Hope they will find new one soon, it for sure really sucks.
Anyway, I rather vote for outsourcing option and keeping brand in exisrence, than having it slowly bleed and die. Ironically in that case, those people would loose job anyway.
Itâs sad, but nobody shouls blame InMusic for wanting to be profitable. Or anybody expected they bought Moog from pure charity reasons ?
Thatâs all fine, if sad. What is not fine is what I have already pointed out - either the management got hoodwinked in which case employees are paying for their incompetence, or they lied outright, which tarnishes the brand. Of course the important thing is that the company stays viable, and if that requires a move to Asia for production, so be it. Thatâs not the issue being discussed here though, at least not by me
But that all are just speculations. We know nothing. Honestly i expected this move from first second when that aquisition was announced. Wouldnât make sense if they did not that.
Saying they lied is speculation. Saying they either lied or were incompetent is a fact, as far as I can see, because those are the only 2 options surely? If you see a third, or more, I'm genuinely interested in hearing what you think it would be.
I'm sure there'll soon be some kind of official announcement and some dodgy marketing bullshit department will state that the employees are "empowered" đ
Empowered to join the dole queue or look for jobs at Behringer... Sweeeet!
No, of course not. They did so for the same reason all investment conglomerates do: to control a market, concentrate wealth, and reduce everything possible to the venal and transactional.
Well, if Moog could have kept selling gear at the price they were asking, then they wouldnât have had to sell, right? Whether they use the best possible components to make their gear means nothing if there arenât enough buyers. Likely, if InMusic kept making everything the exact same way, theyâd have the exact same issues with revenue. If they are probably going to go with cheaper components and labor because they can sell more units. I meanâŠitâs just supply and demand.
Alternatively, they might just move labor overseas. Apple makes all their stuff overseas and I argue that itâs not âbehringer qualityâ. If apple made the iPhone in the US, for example, nobody could afford to buy it.
I expected something like this also. Moogâs production and labor costs likely pushed them beyond the boundaries of acceptability for consumers (I have no firsthand knowledge or insight into their financial condition) and that drove them to sell the company to another concern with available production capacity in China.
Yup. Incredibly sad.
The whole package is a thing of beauty. And the same sort of care went into their cheaper stuff, eg the Mavis. I feel really lucky I got some real Moog hardware just in time.
Horrible for the workers - first the company they were touted as owning sold out from under them, now this. Just a shell left. Hopefully someone with some vision will snap up that talent and make something wonderful from the ashes.
Well said @Dendy. You said what I was thinking but didn't want to take the grief for saying it.
As for lies vs. just practical / changing reality I can't say, but it's reasonable to think the sale would have happened no matter what was said. Surely it was either go belly up and have everyone lose immediately, or grab the lifeline and hope for the best. Sometimes things can be turned around, but it's silly to think it just happens by magic and without cutting expenses in some painful ways. Whether it's a small shop or an umbrella company, payroll has to come from somewhere. If a division can't at least sustain itself you can't keep it alive forever. The article did say that the layoffs were of production staff for the production being outsourced to China, but that limited specialty / high-end products would continue to be made there, presumably by a much smaller staff.
It sucks. But it's reality if there's just not a sustainable business model for boutique products.
(Also - if it's true that the business was to some extent "employee owned" at the time of the sale, then the employees would have gottenat least some part of the sale proceeds, as opposed to losing everything if it went bankrupt.)
Again Wim, both you and Dendy are missing the main point being discussed. The issue is not the reality of the US increasingly being a non-competitive site for manufacturing. The issue is the difference between the message communicated in the letter by the Moog president published just a few months ago, and the reality of this new announcement.
Well and good. But that don't change the economic reality.
You're free to be outraged. I don't bother doing do so if I have skin in the game and can influence the outcome.
Have fun chewing on it tho if it makes you feel better. đ