| Some info from Genz Benz on the future of their Neo cabs
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I didn't see this posted anywhere, forgive me if I missed it. Below is an email forwarded from Bass Specialties:
Ciao Bassisti
the message below from Jeff Genzler – founder of Genz-Benz
Hello all,
Over the past few months you may have heard some talk from dealers or other sources about the "uncertain" future of NEODYMIUM loaded speaker cabinets
There is certainly a lot of discussion going on in the "chat" forums where players are more "in-tune" with the trends in bass gear.
I'd like to take a minute to discuss how this impacts GENZ BENZ and OUR opportunity in the market place.
ISSUE ---
· Since March of 2011 the cost for the NEO magnet material that goes into the construction of a NEO speaker has increased 100-200%.
· China supplies approx 95% of the world's requirements for all NEO material and their recent government policies have thrown this commodity market upside down.
· For reference---this affects ALL NEODYMIUM material used around the world for military uses, auto industry (electric motors), hybrids and a variety of other industries---NEO is even found in your cell phone.
· This issue impacts EVERY SPEAKER CABINET MANUFACTURER IN OUR INDUSTRY that offers NEO loaded cabinets.
· The rapid and dramatic increase has impacted some smaller "boutique" brands that are now DISCONTINUING NEO speaker cabinets from their lines and going back to the heavier older ceramic/ferrite magnet material.
o In a professional 4x10 this could be a 25 lb weight increase, along with a reduction in performance.
· Along with this drastic price increase, the material AVAILABILITY has been constricted to the point where a major supplier to the US speaker industry has essentially stopped offering NEO speakers.
· So, even if a cabinet manufacturer can get NEO, the cost could probably be astronomical.
· As we were aware of some potential supply challenges in the NEO industry earlier this year, no one could have anticipated the depth of this issue.
GENZ BENZ PRODUCT LINE ---
· As you are all aware, the entire GB product line is based upon light-weight cabinet designs of which NEO speakers are a critical component.
· Our recent JULY 1 price increase reflected some of the initial increased costs associated with this NEO issue.
OPPORTUNITY --- GB'S AND YOURS ---
·
· In March 2011, as the severity of this issue was unfolding, GB reacted with strategic decisions to secure NEO supplies in order to continue our product offerings.
· Be assured that GB has worked diligently behind the scenes to insure a continuing long term supply of NEO speakers for our products.
· Along with secured availability, our pricing has been stabilized so that any dramatic price increases (in the foreseeable future) due to the uncertainty in the NEO market and the Chinese government will not impact us.
THE BOTTOM LINE----
· As some cabinet manufacturers are moving back-wards to speaker cabinets that use the heavier Ceramic/ferrite magnet structures, GENZ BENZ will be at the forefront of the market in LIGHT-WEIGHT cabinets and combos.
· As dealers learn more about this issue in the coming months, this is OUR OPPORTUNITY to let them know that now and in the future: GENZ BENZ IS THE DESTINATION FOR NEO CABINETS!
Jeff Genzler
GENZ BENZ | 
