Trade Tariffs and the effect on synth marketplace

:joy::joy:

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unless you’re talking about Moog the aircraft and missile component manufacturer, I don’t think their sales are a blip on the radar compared to a company like Harley. so I doubt they have much political clout. but they don’t release sales figures so who knows…

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Brexit, most of the people in my town voted to leave because of better immigration control, and wrestling control from the EU. Majority of people where I live are old and in a shocker young people voter to stay. Then we realized we shot ourselves in the foot when they realised that the EU subsidised a few business and attractions.

ah, gotcha. yeah I understood that as one of two points from your post; the other being that they had some political clout as well. which is not what you meant. I got that from the Harley comparison, because Harley does (or at least, enough to be mentioned by the tweeter in chief when they make a decision like this).

indeed a company like Moog is more likely to be able to move overseas than smaller American synth manufaturers (for example their fellow Ashevillians, Make Noise). the downside is Moog is employee owned and about 60 employees. likelihood of all those people moving overseas to keep their jobs… not high (and I assume they’d have to approve such a move). also my understanding is that Moog, like a lot of companies, contracts out some of their work to other businesses (board production and population, would be my guess). so they’d need to set that up overseas and another domestic business would also lose a big partner…

anyway, it’s an interesting idea. I think things would have to get pretty bad for it to happen though.

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I blame musicians and creatives for the current state of the world order.

Whilst the oddball aggressives, narcissists and egomaniacs feel duty-called into politics to save humanity with their warped view of the world (hence we end up with truly unrepresentative strangelings assuming power) the musicians, the artists and the creatives shun such endeavors and expend their talents creating soundscapes and rhythms - talent and emotional intelligence that could instead be channeled toward saving humanity but is selfishly spent instead devoted to inner worlds, imagination and escapism.

Yes, the intellectual power and sensitivity of the creatives focusing their energy on their art is allowing the buffoons to run the asylum unchecked, with little challenge but from other buffoons.

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speak of the devil… Moog just sent out an email with headline “25% Tariff on Chinese Goods Threatens Our Jobs!”

and within: "These tariffs will immediately and drastically increase the cost of building our instruments, and have the very real potential of forcing us to lay off workers and could (in a worst case scenario) require us to move some, if not all, of our manufacturing overseas. "

ugh :pensive:

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It is darkly hilarious how misguided this all is from T – and I say that as someone who’s not exactly opposed to a bit of wise protectionism. The US has written the rules in its favour for 50 years, and everyone else has had to play by them. They’re throwing away an advantage that has been carefully built, by fair means and foul, over a very long time. It might actually be good for the rest of us in the long run.

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Got the same mail. This is the second iconic company of the US, which is respected and much valued worldwide to stand up against irrational politics. It will take more for a change, but it’s a beginning. Like the students standing up against weapons.

I don’t want to become elevated, but this seems to be the awakening of the spirit, which made the USA great.

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Trump himself is best considered OT


Trump is Octatrack Operating Thetan? Wohahhhh!

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terk errr jerps!

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Trump is more like the beat thang.

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Can we just admit that this thread isnt going to work?

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Just received this email from Moog

25% Tariff On Chinese Goods Threatens Our Jobs
Dear Moog Family,

We need your help.

A U.S. tariff (import tax) on Chinese circuit boards and associated components is expected to take effect on July 6, 2018.

These tariffs will immediately and drastically increase the cost of building our instruments, and have the very real potential of forcing us to lay off workers and could (in a worst case scenario) require us to move some, if not all, of our manufacturing overseas.

It went on to explain what individuals could do to help them affect policy etc…

Ah… just noticed you already posted these details… Oh well.

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I thought I’d just add some excerpts from the Moog form letter included in the email, which explain the reasons the tariffs will affect their company…

Roughly half of the circuit boards and associated components for Moog’s instruments come from China. This tariff would significantly limit their ability to manufacture synthesizers, and could put many of their employee-owners out of a job.

As an employee-owned company with a 60-year legacy in American manufacturing, Moog constantly strives to keep a balance between domestically- and internationally-sourced parts, so that they can continue employing people from their local community in Asheville, North Carolina.

Moog sources circuit boards from US suppliers whenever possible, paying up to 30% over the price of the same circuit boards made overseas. However, whether they buy circuit boards in the US or overseas, the majority of the raw components still come from China. Therefore, Moog will be unable to avoid this substantial cost increase because of the tariffs.

It must be difficult for companies to strike a balance anyway, and then the playing-field gets tilted one way or the other.

Except there has been actual on topic discussion going on…

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This is interesting coming from Moog. Many fans of Moog adamantly assert that the cost of moogs comes from the fact they do everything in the states.
It appears they do not.

Additionally I wonder how this will affect smaller companies who have taken preorders through a platform like Kickstarter. If one of the most well know synth companies is gonna take a hit on parts, I imagine smaller startups are looking at having to abandon projects.

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Nothing wrong in this statement, just a fact got written down. Mods, please unflag. @AdamJay @avantronica - you can delete my post afterwards.

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It’s off topic, probably why it got flagged

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Regarding that moog thing: theay are expensive anyway… if 50% of the parts get a 25% tariff, the end product raises abput 12,5%. Would you not buy a synth because it costs not $1,500 but $1,750?

I think the smaller companies like FMA and the startup scene will be hit way harder. Moog has perfected manufacturong and streamlined their process chain, this cost optimazation is mostly not yet happend in smaller companies, though their products are pricey. So like the theoryboard, it would be $1,200 instead of $800. That will lay off potential buyers, I am sure.
When I then want to import it to germany, it would cost roughly €1600 ($1870) due to customs. And let’s see if the EU stays on the no tariffs for electronic way.

Yeah, maybe.
But it was just an answer to the OT statement before, and that did not get flagged so it should stay, don’t you think?