The State of Instrument Manufacturing
From presentation by Steve West, president of West Music, Iowa

While attending the National Association of Music Merchants (NAMM) Summer Session in Indianapolis this past July I had the opportunity to hear a presentation on the state of instrument manufacturing given by Steve West, president of West Music in Iowa. Having been a band director for 17 years and the school service director at Marshall Music for 30 years I have witnessed the evolution of instrument manufacturing over the past 47 years. Until six or seven years ago the evolutionary process had been a progression of small steps. The end of the Soviet Union and reawakening of eastern Europe, China’s relaxed entrepreneurial climate, an expanding acceptance of Asian manufacturers including Korea and recently India have intensified this evolution. These have created competition for the U.S. manufacturer from clothing to electronics to automobiles and instrument manufacturing. Mr. West offered his insight into instrument manufacturing that I would like to share with you.

During the past ten years U.S. instrument quality has declined as costs escalated. Every aspect of the manufacturing process (materials, energy, government and environmental regulations and labor) has increased costs. At the same time, the emerging manufacturing markets in Eastern Europe and Asia started to produce band and string instruments at substantially lower costs. Unfortunately, these off-shore instruments were of inferior quality and found their way to the U.S. market through big box stores and the internet.

In order to compete with this over-seas competition and satisfy the shareholders of the conglomerates that were buying up the independent manufacturers the U.S. manufacturers had three choices. They had to find ways to reduce U.S. manufacturing costs through inferior materials and streamlining their labor intensive operations sacrificing quality. After all, it was apparent that the American student line instrument consumer was motivated by price rather than quality since they were flocking to discount stores and the internet to purchase their child’s instrument. Secondly, they found that they could make more money by selling instruments over the internet directly to the customer rather than through a music dealer and make more money. Third, U.S. manufacturers began looking overseas to purchase instruments and merely stamp their brand name on them to sell in the discount stores.

The unanticipated consequence of these decisions was an antagonizing of their largest customers, the school music dealers around the country. A reputable music dealer demands quality in the product they are selling and must stand behind. How could music stores compete with the internet and discount stores who were selling inferior instruments at a far cheaper price that had the same nameplates as the quality instruments the music dealer demanded from the manufacturer?

Ultimately the local music dealer demand for quality instruments at competitive prices from the manufacturer has forced the industry to find alternative manufacturing options while maintaining quality control. This has led to an increase in overseas manufacturing by the U.S. manufacturer. However, global manufacturing requires years to find a quality overseas manufacturer with whom you can form a cooperative relationship to build instruments to your standards. In any new endeavor there are inherent obstacles to overcome before quality can be achieved. Companies like Accent and Eastman Stings began this process over the past ten years. The U.S. manufacturers have come late to the global market and are working diligently to overcome this deficit.

According to Steve West in three years there will not be a student line instrument manufactured in the United States. American manufacturers have already begun to seek quality overseas manufacturing. U.S. manufacturing has become too expensive to compete in the student line instrument market.

Mr. West stated the greatest value to an instrument is provided by the school music dealer who ultimately stands behind the instruments they sell not the manufacturer. Marshall Music has always stood by the product we have provided and will continue to do so through the evolution of instrument manufacturing. We appreciate your faith in Marshall Music to provide the quality you demand for your students and we will continue to strive to earn your trust.