There looks to be some excitable posts ref the outsourcing/sub-contracting of some build/assembly…
My understanding is that the partner will build/assemble product and then ship it to Salisbury for final assembly/test-QC, and final packing…which all sounds pretty reasonable.
Have I got the wrong understanding ?
Logistically to me this makes the most sense. No “offshore” erp to worry about, full control over qc (any issues and a unit will be rewired in Salisbury), and all the test jigs don’t have to be replicated. Sales only need to look in the one erp system to see how many are ready to ship.
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I’m not sure that would encourage me to invest any further. Part of the allure for me was knowing that my components were made in Salisbury.
I suppose it would depend on who the partner manufacturer was.
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I don’t think that’s correct. Richard D said: ‘AFAIK, it’s with a “trusted partner” and everything was set up by Naim production engineers, everyone involved trained by Naim, all overseen by Naim, using all Naim parts and processes, and everything tested by Naim - so a completely “Naim” operation, just off-site.’
So everything is ‘off-site’. Moreover, if one aim is to simplify sales in the EU then it wouldn’t make sense to export products back to the UK and then reimport into the EU.
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I’m told that, at least for time being, the plan is to bring anything built at the EU site back to the Salisbury factory for final testing. That probably doesn’t make so much sense if it’s a long-term thing (and almost certainly answers anyone who reckons this was a “cost saving” exercise) but I guess there are good reasons to do things this way at the moment, and keeps options flexible.
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Thanks for the clarification, Richard
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Allows the use of made in the UK label?
An extra servicing outlet would do no harm at all.
Don’t think so as the actual build would be EU.
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I mean, that step could happen with a factory in the UK, France, Germany… or Slovakia. So still doesn’t change the fact the last part is a cost saving exercise.
Yes indeed. Musicline will certainly get that future business from me which will happen in 10 years or so. I was quite happy with the units when I got them back. Still some open points regarding reasons why certain parts were not serviced but only tested (I.e the pre-amp), but overall seems quite good. Also not too sure about servicing of crossovers where I also get many different points of view. Unfortunately there are no details of SL2 PXO components used.
Makes sense to me, a relatively ‘simpler’ way to provide a cost effective boost to capacity in the short-near term…whilst maintaining the quality, availability, current sales channels, and brand image…see how it develops.
Sorry, I don’t get what you mean here. It’s certainly not a cost-saving exercise and bringing the kit back into the UK again with all the attendant extra costs to do so rather underlines that.
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If we want to say it’s a capacity exercise that is being done cost-efficiently, that’s fine. The part where it lands in Slovakia I’m sure has a big cost component.
I think Naim have been thinking about how to meet the demand for the new classics for a long time. Building a brand new UK factory from scratch might be a nice strategic move but in terms of delivering a new product it would take too long. Getting product out to customers is right at the top and outsourcing manufacture sounds like the the most pragmatic option. Doesn’t preclude longer term expansion in any way.
Thanks for posting that link. I hadn’t read the interview before.
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Do we know when production from the new site goes live?
It would, in theory, be possible to put the imported equipment into a customs bonded area, test the equipment and re-export it without incurring any customs costs, AIUI. When I worked for Geac Computers years ago we imported stuff from Canada, put it into a bonded caged area and, after doing whatever was needed, exported it to Europe without incurring any import/export duty. This was long before Brexit was in anyone’s nightmares.
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Same here and my 851N had to be recapped too. Several years ago Cambridge and NAD were such great value I was willing to break my China boycott, but with recent price hikes I can no longer say so. Really sad how NAD is a Canadian company but for $7500 cannot build a preamp here (while Bryston can build a top preamp for $6000 here).
I briefly considered the little C700. Part of my decision to increase the budget and go with the Atom was to assemble a British system around my old Castle speakers in the office (yeah SQ not paramount). The other part was being enamoured by the “happy family” seen working in Naim factory tour videos.
However with current Naim prices, for future purchases I will be looking at the used market exclusively, unless the new EU production brings more competitively priced options.
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I doubt very much if there’s an import duty and NAIM is VAT registered so that’s effectively null.