[When we first got word that Jeffrey Cox, late of Cox Audio Engineering and the man most responsible for bringing line-array technology to North America (Say what you will, but Cox is the first one to look at a line array and say "Hmmm, that French dude may just be onto something here."), was joining Loud Technologies to head up the EAW brand, we really expected more communication. Cox is not one to mince words. So it was not really a surprise after FOH reported on EAW's transfer of manufacturing operations to Asia and the resulting uproar in our online forums when the Loud suits would not talk about it, that Cox was the one to pick up the phone and give us some real information. Much of what is here has not been published elsewhere. –ed.] WHITINSVILLE, MA — If you have been involved in live audio for any significant period of time there are a few companies that you probably think of as forming the foundation of the business in the U.S. One of those "foundation" companies, Eastern Acoustic Works, better known as EAW, has joined that steady stream of U.S. manufacturing concerns packing up their domestic operations and shipping them off to Asia. Although jarring (some 100 EAW manufacturing employees have lost their jobs due to the move), this cannot be a surprise to anyone who has been following EAW news over the past few years. The company that was started by Ken Berger and Kenton Forsyth (the "KF" in all of those speaker model numbers) was acquired by Mackie in 2000, and just a few years later, in 2003, Mackie, now operating under the Loud Technology corporate umbrella, moved its manufacturing operations offshore. The greater return on investment that resulted made it all but inevitable that other Loud brands would follow Mackie to Asia.
FOH spoke with Jeffrey Cox, EAW VP, about the move ,and what it would mean for the future of EAW and what customers should expect. Cox strongly stated his belief that the move would be a good one for EAW customers.
"The first thing people should understand and be confident of is that the quality of EAW products will not degrade." said Cox, noting that only actual manufacturing was moving offshore. "All of the components are exactly the same and are coming from the exact same suppliers as they always have, whether that means drivers from Italy or birch plywood from the Baltics. It's all coming from the exact same factories. The only change is that now the components are being shipped to China for assembly. We have our own Loud staff on the ground in China watching every process and assembly to confirm for ourselves that it's right. The factory is state-of- the-art. This isn't some rustic, dirt road facility. It's mind-boggling!"
Cox was especially adamant about any metalwork or rigging components. "Any parts that relate to rigging are and will continue to be made in the U.S. I've spent 30 years in this industry and I know how important those parts are."
Cox also said that plans to make this move had been in the works for much of 2006. EAW is keeping engineering, product development, prototyping and some build-to-order capability at the Massachusetts HQ. The upper-level engineering staff in the U.S. and Cox are all personally signing off on every process behind the building of every model coming out of Asia. That group includes top EAW engineers Kenton Forsythe, David Gunness and Jeff Rocha as well as Cox.
"When you consider that every single speaker product has to be recreated from our CAD database precisely and exactly, and three samples of each have to be sent to Whitinsville for our careful scrutiny and evaluation, including sonic mapping and analysis, and each one has to be signed off by five of us right down to how the polyfill insulation is stapled, how deep the countersinks are, or how much "splatter" per square inch the paint finish has, you'd begin to understand just how seriously we take this."
According to Cox, another benefit of the move is the expanded prototyping capability at the Whitinsville facility. "From now on we have a dedicated crew of manufacturing staff that are responsible for two crucial functions of EAW; Prototype development and Custom BTO Product manufacturing. This is where our ability to be fast on our feet in development and specialty Custom work will really be enhanced." Cox went on to say, "We are taking the best of the tools from the manufacturing floor and moving them into the main building where they will be used in our world-class shop. There are so many products and ideas that we're pushing through the system right now, that it's terrific to have this dedicated setup at our disposal and not sharing with production."
Cox also revealed a new capability that this move will provide to EAW, one that has gotten lost in the noise and that has not been reported elsewhere. Part of Loud's move to Asia and a more global focus has meant the loading of huge warehousing facilities in Europe, Asia and the U.S. The benefit, in addition to the obvious saving in manufacturing costs to joining the larger Loud model, is that EAW will be able to warehouse large numbers of cabinets at several locations around the globe which should result in the ability to ship product much faster, and in many cases immediately, upon order. "If we get an order for 32 KF760s, or 32 730's, or 32 SB1000's, or any mainstay product, we'll be able to ask, 'would you like those in your warehouse the day after tomorrow??' That is something that we have never been able to do before and a claim that, I believe, no one else in the industry can make." Cox noted.
Cox closed with a request for audio customers: "Do you think, even in our most irrational mind, we'd even consider making a decision and move as formidable and substantial as this without carefully considering every single bit of minutia and looking at every aspect and potential, without considering how it could potentially negatively impact our customers and us? Do you think we're freakin' crazy? This is huge, and it's being handled as huge. This is a massively competitive business and we want every advantage in our court. And, trust me, we're not done stacking the deck."
FOH has also learned at presstime — through separate channels — that Loud Sr. vice president and EAW co-founder Kenneth Berger has resigned.
A new discussion thread on the EAW move — in light of this new information — has been started on the FOH Forums. Click here to join in.
