The Future of Krell Uncertain

[Formerly YB-2]

Originally Posted by KMC45

I'm thinking a lot of us wish you had kept strolling.

Typical 'blue-light-special' thinker.

[Formerly YB-2]

Originally Posted by Masterlu

The 300 series products (Integrated & CD Player) are the only Chinese made products in the Krell line. They are still 100% Krell designed but manufactured in China to hit an entry level price point.

I saw them myself in person, they look and sound great for what they represent.

Unfortunately, they represent shipping more jobs overseas.

[JSCC]

Originally Posted by 1KW

What Happened At Krell and Why The D'agostino Family Is Out
Lets hope the founders of Krell get control back of the company they started.

The Krell founder had moved on. He found another company ... named it after him!

Its history repeating itself, be it Bob Carver (Carver), Mark Levinson (twice and this is his THIRD and probably last legacy) ...

I suppose this is what we term as the "wave of change".

Cheers!

[schaefer11]

Originally Posted by Formerly YB-2

Unfortunately, they represent shipping more jobs overseas.

Or do they grow jobs at the docks, trucking companies, Krell itself, and it's dealers by broadening the product line and increasing sales? Job creation and loss is not a zero sum game. Generally, buying goods from lower cost producers, whether foreign or domestic, make the goods available to more people and creates more jobs in the distribution and selling of those goods than the manufacturing jobs lost at the higher cost producer.

BTW, chances are that every piece of electronics you own has something in it that is built overseas, even if it is assembled in America, not to mention your car, your clothing, etc. etc. So you can delude yourself into thinking you only "buy American", but it is virtually impossible to actually achieve. Oh and I'm sure that those American workers at Wal-Mart appreciate the fact that you consider someone elses manufacturing job more important than theirs.

[Formerly YB-2]

Originally Posted by schaefer11

I'm sure that those American workers at Wal-Mart appreciate the fact that you consider someone elses manufacturing job more important than theirs.

Absolutely more important to have 'value-added' manufacturing jobs. Not only do they pay considerably more, the job-chain, as you've mentioned, is generally considerably longer and involves the same folks in other jobs you speak of. But, a 'service' economy is actually better described as a 'servitude' economy, based on the wages paid all but those at the top. And, I was unaware that Wal-Mart actually manufactures anything other than low-paying jobs with few or no benefits. Am guessing not many Krell owners work at Wal-Mart.

[Still-One]

Originally Posted by Formerly YB-2

Am guessing not many Krell owners work at Wal-Mart.

D'Agostino's departure and Krell's problems stem from a cliental that is more likely to work on Wall Street rather than Wal-Mart.

[cmalak]

This is getting very off topic but i'll bite. Formerly YB-2...you are correct that manufacturing jobs that get shipped overseas are more economically valuable than Walmart or transportation jobs that are created from imported goods given their multiplier effect on the economy. However, the US economy has been exporting manufacturing jobs for over 30 years now because we no longer have a competitive advantage in manufacturing high volume, low cost goods. Capital will migrate towards the lowest cost sources of production because that is what the consumer demands. You cannot subsidze (whether via tax policy or other means) any manufacturing sectors/jobs in any sustainable fashion because the differentials in cost of production are too great between the US and places like China, other parts of Asia (think Vietnam, etc...), certain parts of Eastern Europe, and so on.

What needs to happen is that the US needs to invest in the high-value added areas of the economy (high tech, alternative energy, biotechnology, and so on), so that innovations in those arenas create high value-added products and services locally that can support high paying jobs. The battle to maintain manufacturing jobs in the low value, low cost portions of the economy (like in consumer electronics at the low end of the market) was lost over 20 years ago (first to Japan, than to Taiwan, then to China, and now increasingly to places like Vietnam and other even lower cost manufacturing areas in the world). Just the facts...and my 2c.

Originally Posted by schaefer11

BTW, chances are that every piece of electronics you own has something in it that is built overseas, even if it is assembled in America, not to mention your car, your clothing, etc. etc. So you can delude yourself into thinking you only "buy American", but it is virtually impossible to actually achieve.

Very true.

[Formerly YB-2]

Do not disagree about the sub-assemblies, etc. But, I'll do what I can. Especially with the high-tech manufactured items like my stereo system and automobiles and appliances, etc.

Too bad about D'Agostino. But, as a consultant that helped smaller, family owned businesses figure out what to do when the founder got ready to go, it happens all the time. Somehow, a single family (the founder's) that can live well on the profits from a small company can't seem to figure out that the same is not true when the four kids think they can all live just as well when they inherit. I digress. I'll still be looking only at a Krell that is designed/built in the U.S during the "D'Agostino era".

[Omerta]

When I read about "made in china" the first thing I did was call the dealer and begged him to tell me all the EVO stuff is still hand made in the USA. He assured me they are. The thing that gets me about china made stuff is that if it is not carefully watched they will substitute parts that are only good enough to last the warranty period. I have seen that exact thing damage an Internet companies reputation when the sub amps started failing.

[Elberoth]

I'm almost certain, that the last runs of KAV-400xi (from 2006 or so) were also made in China, irrespective of what Krell declared (I tracked down a QC stamp inside one of the 400xis which led me to the HongKong based QC company ... and for those who do not know, HongKong is next to one of the biggest China manufacturing areas). I have also visited Krell factory back in 2008, and noticed no 400xi beeing assembled - only the evo series products.

Having said that, I have nothing agains goods manufactured in China, as long as the proper QC is maintained. In fact, I think that the new, Chinese made Krell S-300i is BY FAR the best integrated Krell has ever made (300i, 300R, 300iL, 400xi) and represents excellent value.