Founded by Hartley Peavey in 1965, Peavey has multiple US factories throughout Mississippi and Alabama in addition to distribution facilities in the US, Europe and Asia.
The company's statement says: "While prices from China lowered the cost of the products in the marketplace, Peavey has continually examined its operating structure and made adjustments to compete with the lower cost structure of its competitors . . . The UK facility was originally set up as a manufacturing plant for large items to minimize international shipping expense but with advancing and lower cost Chinese manufacturing, this hasn't been needed for some time."
The statement continues: "It is intended that these changes will improve the international supply chain and the sharing of global resources, bringing manufacturing and international customers closer together. A reduction of complexity in operations will take place over the forthcoming months and will result in a more competitive international market accelerating growth for Peavey and its brands. Peavey are confident that this approach will be a significant benefit to its dealers and customers."
"Europe is a key market for us," says 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 Hartley Peavey set in place; providing quality gear at a fair price."
Peavey says it will announce more details of the restructure over the coming months.
(Lee Baldock)
