Peavey UK to close distribution arm but R&D centre remains11 August 2014
Peavey Electronics is to close its UK distribution facility in Corby in an exercise that will reduce costs and restructure international operations in order to make the brand more competitive. The move comes as the company approaches its 50th anniversary.
The Corby central UK base was originally set up as a manufacturing plant for larger items to minimise international shipping costs – a function that Peavey says has not been required for some time with more advanced and lower-cost Chinese manufacturing.
A further statement said that changes will be made to improve the international supply chain and the sharing of global resources, bringing manufacturing and international customers closer together, and that a “reduction of complexity in operations” will take place over the coming months. The company says it is “confident that this approach will be a significant benefit to its dealers and customers”.
Peavey’s European marketing manager Andy Rust told PSNEurope that distribution partners and the Peavey Italia manfuacturing and design centre remain “untouched at present”.
“Our distributors themselves will not be changed as part of the restructure. The way that they are served in the future will be. A Chinese distribution hub is the most likely scenario in the future but for the time being it will be US, Corby and China,” said Rust.
Approximately 32 people are employed at the Peavey Corby site. The number of redundancies expected following consultation was not known at press time, though the majority of them will stem from the MI part of the business (guitars and amplifiers). Rust confirmed that the Peavey digital R&D hub in Oxford, responsible for Commercial Audio lines such as the MediaMatrix and NION networking tools, will continue to operate.
Peavey will be announcing more details of the restructure over the coming months – which will presumably include arrangements for ongoing product support.
“Europe is a key market for us,” commented Clive Roberts of Peavey Electronics Limited. “The company has been looking closely at the structure of its European operation and what the best fit will be for the business moving forward. Our organisation needs to become more efficient and improve the allocation of international resources, especially if we are to continue the mantra and market niche that [company founder] Hartley Peavey set in place; providing quality gear at a fair price.”