As detailed in the CA Global Partners auction website, the inventory and assets from Peavey Electronics consists of over $2M USD of speakers, PA systems, guitar amps, mixers, guitars, woofers, amplifiers, microphones and musical instruments, some of which are new unsold stock, but most are old used demo equipment, together with returns. Another larger part of the inventory, estimated to be worth $10M is made up of manufacturing parts, which include, wood and plastic speaker cabinets, drum set parts, guitar cases, shipping cases, speaker drivers (both Peavey-branded and pro audio OEM supplies), resistors, capacitors, cables, switches, transistors, diodes and many more components.
The photos available at the auction house website reveal impressive quantities of products spreading across all of Peavey Electronics' brands, including a large quantity of Crest Audio professional audio products. Of greater interest for builders, and other manufacturers is also an extensive inventory of manufacturing assets that include saws, drill presses, shapers, sanders, stitchers, presses & large qty of raw materials to include, maple, ash, walnut and mahogany.
This is another clear example of the US speaker assembly and components infrastructure shifting to Asia in the past decades. The latest auction announcement reveals how the company founded by Hartley Peavey in 1965 and once one of the largest makers and suppliers of musical instruments, amplifiers and professional audio systems, has progressively transferred its manufacturing operations away from its Meridian, Miss., facilities. Recent reports by local media, confirm that Peavey Electronics as further reduced its workforce in Meridian.
Peavey recently sold all its assets in Europe, following the closing of its UK-based headquarters, distribution and manufacturing operations in 2014. The company promoted another large auction in the US in 2015, following the closing of two of its largest manufacturing facilities in Decatur and Meridian, Mississippi. At the time, the company announced: "The company is relocating some manufacturing operations that were traditionally done in Mississippi to outsourced operations in response to lower cost manufacturing overseas."
The announcement also stated, "Changes in the marketplace and the demand for the product categories previously made in the USA made the company reassess its manufacturing facilities here in the US and it reallocated resources in order to remain competitive. Peavey continues to make Meridian its headquarters and will continue to employ several hundred employees."
"We sell products to over 136 countries. Our product mix has changed - instead of building great big speaker boxes, people are wanting little compact things," Peavey said. "We just can't ship big boxes around the world and be competitive. Basically, most of the lower end of the product line has gone offshore, and the more technologically advanced products like our MediaMatrix product line we're keeping in the United States."
The new auction - live online only - takes place August 7, 2019 and the inventory is meanwhile available for inspection at the Meridian warehouse. The complete catalog is now available online at the CA Global Partners website, here: https://cagp.industrialbid.com/m/view-auctions/catalog/id/4200
www.peavey.com
