This can be said of almost all manufacturing companies in all industries.If Fender's board hadn't made the decision to start stockpiling at the start of COVID, given the precarious nature of the supply chain and increased demand, they should be being asked to resign en masse. To not have DR, business continuity, financial health, and reputation of FMIC top of mind would be a failure on many, MANY levels. Even at current inflated prices, raw materials constitute only a small part of an instrument's cost, particularly on a high-margin custom shop instrument.
What also can be said of most manufacturing companies in most industries: they’d need to buy land and build a storage facility at least equal in size to their manufacturing facility’s just to store a year’s worth of materials.
That’s a huge investment that just isn’t part of typical sensibilities, values, or teachings- particularly in a world where we’re at least trying to implement as much of Six Sigma into our practices.
Preparedness is really not a close friend to profits.
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If what has been mentioned by people supposedly in/near lumber & mining operations, the materials supply groups are taking an opec-like position and simply jacking prices and claiming low supply- which is not something customers in 2016 (or any pre-Covid year) would have paid a preparedness premium for.
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