Too much classic gear here
Iāve heard Statement. It sounded good, but in no way excited me. Not where i would brag about it. Only in heritage, size and cost.
Hi Ho Silver Liningā¦
All of the folk here with concerns and complaints at least already own Naim, āmade in Salisburyā products which now have even better second hand value going forwardā¦
Well, letting someone else do the solstice manufacturing went very well, so this will probably end well too. (sarcasm intended).
Indeed and rightly so, why should anyone buying a nova for a pittance expect the same as us buying serious separates. Let them eat Slovakian cake.
.sjb
Shock, horror: Bunch of curmudgeonly Little Englanders decry progressā¦
Brand loyalty works both ways.
Is expansion always progress?
And a lot of that sentiment (not all Iām sure) is very hypocritical. Some of the most negative comments are from people with gear made in many countries.
While this is a big change, it is also a mountain made out of a molehill. France is an engineering powerhouse with a longstanding history of innovation. I might dislike Focal as a brand but the location has nothing to do with that.
I could understand negative feeling and a desire to move away from a luxury brand if production had been moved to some place with questionable human rights standards or some other political objection. There are definitely places Naim could move production to that would result in me ending the brand relationship. But this is France guys. Neighbours across a bit of water you can swim.
Some of the comments show some fairly insular thinking.
Yesterday I posted an amusing pic on this thread, I wonder how many actually detected it was poking fun at some of the silly reactions to this move, not the move itself.
[Addendum] So Iām informed actually not France but Sloviakia. JJ tubes are a great example of a longstanding audio manufacturer in the region. You can take all the above and replace France with Slovakia. It still applies.
Well Iām a bit late to the party. Shocked but not surprised think this is a direct result of decisions made by some UK residents a few years ago and Iām pretty sure it was even predicted back then. For me I can live with it being made in Slovakia as long as the quality remains the same and the savings in labour costs are passed on to the customer. This move is no doubt a financial decision and there has to be benefits for all. As mentioned on another thread the recent price increases in this part of the world are making Naim gear uncompetitive imo.
Iām not surprised at this. When atom/star/nova were introduced, and there were excessive delays between orders and delivery (for different reasons), the factory went into 24 hour manufacturing with 3 shifts of 8 hours each. Anyone who had done wiring got pulled in. It must have been chaos. Clearly Naim doesnāt want to repeat this with 200 series and future 300 series. Thereās actually not a lot of people in the factory holding soldering irons making stuff.
Mine has always virtually all been British (albeit not all components within), the only exceptions over more than 50 years having beenThorens TT, several cartridges, a USB isolater/converter when I used Hugo DAC, and Mac Mini/Audirvana. But British was not through conscious intent that they be British, simply that in general (undoubtedly with exceptions) British hifi seemed the best. But whilst it is nice to support local, ultimately my money will go wherever I can get maximum sound quality at best value for money.
No, for Godās sake, no US manufacturing! Naim must be developed and manufactured in the UK or at least in Europe, that goes without saying.
Thatās a good point - about 80 work in Production, which is pretty much the same number as pre-merger/acquisition (technically acquisition as Vervant Group now own 100% of the shares who in turn are owned by a private equity house) in 2011. Remarkably turnover is 2.5x what it was pre-acquisition. Simple maths to me suggests that (sales product mix aside and ex-works price increases) the majority of that sales growth volume has probably come from outsourcing/sub-contracting of the Muso etc range from China. Undoubtedly UK productivity improvements have been made in workflow, reduced number of components and possibly more bought-in sub-assemblies/part populated boards, but Naim have already been sub-contracting manufacture for a number of years now, albeit at the entry mass market level (which makes 100% commercial sense).
I think the issues referred to with the last major launch(es) of the next level one-box Uniti/Atom etc range would suggest that these and the next level up (200 series) would be strong candidates for sub-contract manufacture. This leaves (hopefully) the more premium (and presumably higher unit margin) products/ranges to remain principally manufactured in Britain/UK. The likes of Sony, Panasonic and countless others have adopted this same strategy albeit starting some 20 or so years ago, as UK manufacturing costs have gradually become less competitive (albeit they have traditionally operated in much higher volume manufacturing bases, but the challenges and solutions are similar).
Another possible driver to produce some product in the EU (aside from post-Brexit challenges for UK exporters and importers) is that since sales to EU countries has consistently matched or exceeded those to UK customers, it makes logistical sense to distribute product much closer ie in, that Bloc, plus selling in Euros and paying for product/sub-contracting in EUR is a natural hedge and reduces FX risk substantially, which otherwise can be a volatile risk to gross margins.
My personal view is that:
ā¢ Naim is still a relatively small company backed by corporate investors who expect sustained sales growth and improving net margins to return dividends to repay capital invested (and more!).
ā¢ If Naim is to continue to survive and flourish, then with their production volume constraints potential sub-contracting manufacture has to expand but hopefully at the lower tiers of the ranges initially, where unit margins are presumably lowest/tighter.
ā¢ Despite the above, I truly hope that Naim should be able to get a decent margin on the latest range by continued manufacture in the UK. At c.Ā£6k GBP per box that is some serious money now and for those not to continue to be made in UK (for the domestic market of which still accounts for over 30% of turnover) for at least the next five years is a concern.
ā¢ Naim trades on its English heritage, but moreso to me on its audio/electrical excellence, solid innovative R&D, bulletproof dependability/reliability and excellent after sales support and service. The products also have that unique house sound and character that has to remain Naim. If that set of brand values ever changes for the worse, that indeed will be a very sad day.
I do find it difficult to understand why relocation to larger premises perhaps in a cheaper area than Salisbury is not an option, but the above makes sense from a commercial perspective.
I truly hope that the production and R&D jobs (c. 112 or 74% of the workforce) continue to be gainfully employed in the UK operating at full capacity for the UK market, producing the bulk of the non-entry level(s) Naim product range and offering the expertise and after sales support that long-standing and loyal customers continue to rely upon (and handsomely pay for!).
I hope this is a smart thought through strategy, that may be temporary as Richard said. I feel it is slightly more permanent than that (if successful operationally ands financially), and thatās fine, I just hope this isnāt the thin end of a wedge that will undermine the long-term longevity of the UK production base.
I think it is fair to expect that if I am expected to pay Ā£6k for a box of audio wizardry that I have the expectation and option that it is assembled and tested in the UK. There has to be sufficient margin for both dealer and Focal/Naim, otherwise there is something seriously wrong with UK manufacture or investor expectations.
Best Wishes
Julian
How does Rolex do it?
Not sure if that was intended for me? If it was, in relation to my post it linked I think Switzerland has its own trading agreements with the EU surrounding it, likely far simpler and better than the UKās post-B correctly predicted mess.
Cambridge is quality in design, but the Chinese manufacture leaves a lot to be desired in my personal experience. I own their Azur 840 preamp and CD player. Both needed to be recapped on either side of three years. My Cambridge experience convinced me to stick with made in UK, Canada, USA, EU, or Japan, which is where I was before Cambridge.
I bought a Uniti Atom over a similar form factor NAD for one major reason - Naim was made in UK, NAD in China. The Naim also sounds much better, which was a bonus.
Have Naim addressed the servicing issues in Australasian market? If not that would be rather disappointing, I believe we are a loyal bunch of enthusiasts and I realize a small sector of the market.
I live in the US and my 1980ās pair of Linn Isobariks say āIsobarik Corporation of Americaā on the back.
The country is not what makes a difference, you get what you pay for is true everywhere, including the UK.
Although some things are different between countries like availability of skilled workers. Part of the success of China is their ability to make large numbers of skilled workers available. Salaries are less a problem only 11% of the cost to build an iPhone. Being close to parts supplies, but that is also Apple specific. Every year Apple publishes the reports of the quality control people that visits all the sites, they have discovered quite a number of surprises over the years, the reports are on their website.
If Naim want a decent market in the EU then a presence in the union is a no-brainer. You can cover the whole EU as one market from one place if you are inside. From the outside you need to deal with every little country separately.