A Sad Day -- Fender closes New Hartford

[mc2NY]

FMIC this morning has decided to close the New Hartford, CT factory where Hamer, Guild and Ovation were being made.

They had been using the Hamer builders to build the other brands, while they have been finishing up the backup of custom Hamer orders.

A sad day in U.S. Guitar history when a great brand with 40+ years dies.


HERE IS THE PRESS RELEASE


FENDER MUSICAL INSTRUMENTS CORPORATION TO CLOSE NEW HARTFORD, CONN. FACILITY;
OVATION® TO CEASE U.S. PRODUCTION



Fender Musical Instruments Corporation (FMIC) is proud of the products that are built in our New Hartford, Conn. manufacturing facility and appreciates the talented group of people that hand craft them. However, due to current market conditions and insufficient volume levels, the company has made the decision to cease production there within June 2014.



This decision represents a consolidation of production capabilities for FMIC U.S.-made acoustic instruments. "We are committed to providing the same high quality musical instruments our artists, consumers and customers expect and demand, and will continue to support the brands that are currently being produced in New Hartford," said Richard McDonald, senior vice president of Fender®.



U.S. production of Fender acoustic and Guild® instruments will transition to other facilities at a later date, while domestic production of U.S.-made Ovation musical instruments will cease.



Forty-six New Hartford-based FMIC employees will be affected by this decision over the next several months. These impacted employees served the company well and will be treated fairly and with respect; they will be provided comprehensive assistance, including severance packages, outplacement services and other related assistance.

[Dave W]

That's too bad. It's especially bad news for Ovation. I've never been an Ovation fan, but the brand does have its fans and a long history as an American brand. Sales must really be down.

Of course Hamer could still be revived at some point and the brand didn't originate in CT. I wonder if the brand name could be bought.

[rahock]

Ovation had it's day back when they were the only acoustic that played like an electric . They opened things up for a lot of acoustic players and brought many electric players in to the acoustic world, which made a lot of good music that otherwise may not have happened. Guild ruled the acoustic world for a few years , from mid 70s t0 mid 80s , when they were one of the only acoustic builders to deliver high quality at a reasonable price. At that time Gibsons were really pricey , Martins were having quality issues, Taylors were pretty much unheard of and the good products from Japan were still not too popular. In any event, it's a shame to see Fender making stuff disappear again .
Rick

[dadagoboi]

It's unfortunate but it seems to be the old case of supply and demand capitalism, hard to argue with it.  Maybe some of the builders who did the actual work will start their own businesses.

The various brand names have zero value to me, there is no guarantee someone buying a brand would produce similar quality.

The people who did the actual work made the instruments what they are.  In today's world there are opportunities to capitalize on that.  Probably not in Connecticut, though.  Too expensive and too much regulation, the price you pay for living in a civilized state.

[mc2NY]

I'd been up to the CT Kaman headquarters a few times, to cover press events. A really great bunch of people running Kaman and Hamer.

In got all the "suits" into a mass snowball fight with each other when the other media guys were trying to get them to pose holding shovels, in the typical stereotype "groundbreaking" photo. I yelled out "that BLOWS....someone throw some snowballs" and all he'll broke out. Funny.

I was up there maybe a year later for the grand opening of the new warehouse, which Kaman had timed to coincide with founder And CEO Charlie Kaman's birthday (I think his 75th.)  I spotted Charlie sitting off alone with his German Sheppard and shot a few candid pics of him. I later sent a couple copies to his son, Kaman Pres Bill Kaman. To my surprise, Bill called me a few days later, asking if he could get more. He said his dad said it was the best photo anyone had ever done of him, a rather nice compliment coming from a guy who had been around for 75 years and been photographed quite a lot for his accomplishments.

The one time I was up there Bill took me around for a tour of Kaman Aerospace, where they build helicopters and had come up with the idea of using the blade plastics to make the round back Ovations. All those guys loved music and played. They weren't just a bunch of suits. That was part of what led to Kaman buying Hamer. Bill Kaman owned a bunch of their guitars and loved them and wanted to help expand the brand back in the late 80s.

Also took the Hamer factory tour of their factory, in an old lumber mill on a river up in the woods. Just a great place. A lot of notable builders came through the Hamer ranks over the decades and the brand was responsible for many industry firsts. So, for me, it is a sad thing to see it closed....especially by a bunch of corporate FMIC hacks who bolt on necks down in Mexico. It's like Kia buying Mercedes and closing it down.

Maybe  that's why I only own one Fender....my four main brands I've used the longest Hamer, Kubicki, SUNN and SWR, were all victims of FMIC.

[gearHed289]

That is a bummer. They made a LOT of good stuff over the years. As a guy from the Chicago 'burbs, and a big Cheap Trick fan, Hamer really meant something in the 80s. I've only had 2 (an original Cruisebass, and my current B12S), but both were expertly crafted instruments.

[TBird1958]

And somehow people think Gibson is the Evil Empire 

[Dave W]

I'd been up to the CT Kaman headquarters a few times, to cover press events. A really great bunch of people running Kaman and Hamer.

In got all the "suits" into a mass snowball fight with each other when the other media guys were trying to get them to pose holding shovels, in the typical stereotype "groundbreaking" photo. I yelled out "that BLOWS....someone throw some snowballs" and all he'll broke out. Funny.

I was up there maybe a year later for the grand opening of the new warehouse, which Kaman had timed to coincide with founder And CEO Charlie Kaman's birthday (I think his 75th.)  I spotted Charlie sitting off alone with his German Sheppard and shot a few candid pics of him. I later sent a couple copies to his son, Kaman Pres Bill Kaman. To my surprise, Bill called me a few days later, asking if he could get more. He said his dad said it was the best photo anyone had ever done of him, a rather nice compliment coming from a guy who had been around for 75 years and been photographed quite a lot for his accomplishments.

The one time I was up there Bill took me around for a tour of Kaman Aerospace, where they build helicopters and had come up with the idea of using the blade plastics to make the round back Ovations. All those guys loved music and played. They weren't just a bunch of suits. That was part of what led to Kaman buying Hamer. Bill Kaman owned a bunch of their guitars and loved them and wanted to help expand the brand back in the late 80s.

Also took the Hamer factory tour of their factory, in an old lumber mill on a river up in the woods. Just a great place. A lot of notable builders came through the Hamer ranks over the decades and the brand was responsible for many industry firsts. So, for me, it is a sad thing to see it closed....especially by a bunch of corporate FMIC hacks who bolt on necks down in Mexico. It's like Kia buying Mercedes and closing it down.

Maybe  that's why I only own one Fender....my four main brands I've used the longest Hamer, Kubicki, SUNN and SWR, were all victims of FMIC.

Jon, I understand your feelings for Hamer and the Kaman family, but your view of Fender's actions isn't accurate.

Kaman sold because its music division had become a huge drag on corporate profits. They unloaded it at a bargain basement price to keep from losing more money on the division. Fender bought it because they needed the manufacturing capacity and the skilled workmen at the time. They certainly didn't buy it for the Hamer brand. If FMIC hadn't needed the capacity and workmen, you can bet Kaman would have shut it down rather than continue to bleed. Nobody -- including Fender -- would have ever bought it with the idea of turning around the US operations. There were no other prospective buyers.

US Hamer production was at a trickle compared to the 90s, long before FMIC bought it. I don't know what you would have expected them to do. It's sad that sales no longer can support that factory being open, but Hamer's custom shop was already living on borrowed time.

Fender revived the SUNN brand for a new series of guitar and bass amps about 15 years ago, then dropped the nameplate when they didn't sell well, and people somehow thought they shut down the company. In fact, SUNN amps were already dead and gone when Fender bought the rights from Hartzell in 1985.

SWR was in receivership when Fender bought them. Now, maybe they could have done more with the brand, maybe not, but SWR would be extinct if FMIC hadn't bought them. Likewise with the Guild and Tacoma brands. Both those companies were broke and production had ceased when FMIC bought them.

I don't know about Kubicki, but none of these other companies were victims of FMIC.

And somehow people think Gibson is the Evil Empire 

Maybe they are, maybe not, but Gibson also gets an unfair rap for shutting down companies or running them into the ground. Example: Trace Elliot. The company was in receivership when Kaman bought it, the bass amps weren't even being made by the time Gibson bought the remains in order to produce a guitar amp under the Gibson name. Yet Gibson was accused of running the company into the ground.

[dadagoboi]

Gee, Dave, what a spoilsport.  Letting facts get in the way of a good story.

[Pilgrim]

I note "OVATION® TO CEASE U.S. PRODUCTION".

That doesn't mean they won't move production overseas.

[lowend1]

Does any of this mean that my Celebrity CC074 ABG is going to be worth a lot of money?
Rats!

[Dave W]

Gee, Dave, what a spoilsport.  Letting facts get in the way of a good story.

I note "OVATION® TO CEASE U.S. PRODUCTION".

That doesn't mean they won't move production overseas.

Most Ovations have been made in Asia for some years now.

Does any of this mean that my Celebrity CC074 ABG is going to be worth a lot of money?
Rats!

AFAIK the whole Celebrity series was imported so I don't see how it would be affected.

[copacetic]

So by closing down the US operation with regards to Guild...not sure what models were being made in CT, but that most likely means their higher end LTD edition series. This most likely won' t affect the Korean made Basses or....?

[mc2NY]

Jon, I understand your feelings for Hamer and the Kaman family, but your view of Fender's actions isn't accurate.

Kaman sold because its music division had become a huge drag on corporate profits. They unloaded it at a bargain basement price to keep from losing more money on the division. Fender bought it because they needed the manufacturing capacity and the skilled workmen at the time. They certainly didn't buy it for the Hamer brand. If FMIC hadn't needed the capacity and workmen, you can bet Kaman would have shut it down rather than continue to bleed. Nobody -- including Fender -- would have ever bought it with the idea of turning around the US operations. There were no other prospective buyers.

US Hamer production was at a trickle compared to the 90s, long before FMIC bought it. I don't know what you would have expected them to do. It's sad that sales no longer can support that factory being open, but Hamer's custom shop was already living on borrowed time.

Fender revived the SUNN brand for a new series of guitar and bass amps about 15 years ago, then dropped the nameplate when they didn't sell well, and people somehow thought they shut down the company. In fact, SUNN amps were already dead and gone when Fender bought the rights from Hartzell in 1985.

SWR was in receivership when Fender bought them. Now, maybe they could have done more with the brand, maybe not, but SWR would be extinct if FMIC hadn't bought them. Likewise with the Guild and Tacoma brands. Both those companies were broke and production had ceased when FMIC bought them.

I don't know about Kubicki, but none of these other companies were victims of FMIC.

Maybe they are, maybe not, but Gibson also gets an unfair rap for shutting down companies or running them into the ground. Example: Trace Elliot. The company was in receivership when Kaman bought it, the bass amps weren't even being made by the time Gibson bought the remains in order to produce a guitar amp under the Gibson name. Yet Gibson was accused of running the company into the ground.

I wasn't so much blaming FMIC for destroying some of my favorite brands! just mentioning the coincidence.  I'm pretty familiar with the various players after being the editor of one of the major music trade magazines for years....but both Fender and Gibson show a lot of similarities over the last 20 years or so -- buying up once great brand names, cheapening up the once great production values of those brands and throwing them against the wall to see what sticks.

Perhaps it is just impossible for a major manufacturer to build a good U.S. made guitar or amp any more? I don't really believe that, since there are some folks doing it. I guess it comes down to profit margin.

But I saw Fender try to cheap out Kubicki and Phil took the brand back and did it himself again until his death. I saw Gibson try to revive Orange and fail....and then Orange thrive once separated from Gibson. SUNN could have done the same, since Fender sold,the same amp successfully under the Fender logo. So, it was a marketing problem. Fender could have done the same with Hamer....but why would they want a brand that built better guitars than the Fender Custom Shop?  Again, Fender had no intention of marketing Hamer, IMO foolishly....since I saw HAMER's value to Fender being the only brand allowed to build Gibson-ish models and not get sued by Henry J.

But Fender bought Kaman for its large distribution network and warehousing locations...NOT for any of its brands. Kaman CEO Charlie Kaman was dead and his son Bill had resigned, with no interest in continuing to run the company. So, Kaman Aerospace had no interest in the M.I. Industry. FMIC was looking to do an IPO and beef up its value before offering stock.....but despite buying Kaman as part of beefing up its net worth, FMIC could not get a high enough value and pulled back from the IPO last year.

Same guy who did the Guitar Center IPO was heading FMIC......and we now see how well Guitar Center's marketing plan and large debt in turning out. They may very well take a number of brands down with them when they crash.

[Dave W]

...
But Fender bought Kaman for its large distribution network and warehousing locations...NOT for any of its brands. Kaman CEO Charlie Kaman was dead and his son Bill had resigned, with no interest in continuing to run the company. So, Kaman Aerospace had no interest in the M.I. Industry. FMIC was looking to do an IPO and beef up its value before offering stock.....but despite buying Kaman as part of beefing up its net worth, FMIC could not get a high enough value and pulled back from the IPO last year.

Same guy who did the Guitar Center IPO was heading FMIC......and we now see how well Guitar Center's marketing plan and large debt in turning out. They may very well take a number of brands down with them when they crash.

It's true that Kaman no longer had any particular interest in the MI industry after Bill resigned, but it's also true that the division was losing a lot of money.

GC's demise has been predicted for years. Could happen, but I wouldn't count on it. Are you aware that Ares Management, which was GC's biggest creditor, has now taken control of GC from Bain? They exchanged part of their holdings in the company's debt for preferred stock. The deal was completed early this month.

One of the last annual reports from GC before Bain took them private showed that guitar sales were only 14% of their sales volume. If they do eventually crash, it may affect the pro audio manufacturers a lot more than guitar manufacturers.