Musical Instrument Manufacture - Market Research Reports

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Musical Instrument Manufacture

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Executive Summary

Brief Excerpt from Industry Overview Chapter:

The US musical instrument manufacturing industry includes about 550 companies with combined annual revenue of $2 billion. Major companies include Fender and Steinway. The industry is highly concentrated: the 50 largest companies generate more than 80 percent of revenue.

COMPETITIVE LANDSCAPE

Demand is largely driven by consumer income and education demographics. The profitability of individual companies depends on cost efficiencies. Many large companies benefit by offering a wide range of products. Small companies can compete effectively by specializing in high-end or niche instruments. The industry is labor-intensive: average annual revenue per employee is about $125,000.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products are string instruments (including violins and guitars); electronic keyboards; pianos; and woodwinds. String instruments account for about 20 percent of the market; keyboards, pianos, and woodwinds for 10 percent each. Other products include brass wind instruments, percussion instruments, and organs. Replacement parts and accessories, such as strings, mouthpieces, and music stands, account for a significant portion of industry sales, about 25 percent.

Lower-cost instruments are often made on assembly lines, while higher-quality instruments are produced at clusters of workstations. Typical tools include cutting tools, molds, sanders, lathes, presses, and drills. Production involves manufacture of components and final assembly. Components, especially electronics, are often bought from other manufacturers.

Raw materials vary, depending on the instrument type and quality. Professional wind instruments are usually made using silver, gold or brass (70 percent copper and 30 ...

Contents:

Industry Overview
Quarterly Industry Update
Business Challenges
Trends AND Opportunities
Call Preparation Questions
Financial Information
Industry Forecast
Website and Media Links
Glossary of Acronyms

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