Pressed to the Edge

[Douglas]

Very interesting read. It wont be long before this fantastic resurgence will end. Buy as many great records as you can, and hang on to it.

Pressed to the Edge: Why vinyl hype is destroying the record

[bart]

A good read Douglas.
Thank you for sharing.

[cmalak]

Douglas...thanks for posting. It's interesting because if the supply tightness is so pronounced in so many steps of the value chain in producing a vinyl record, you would assume that capital would come in and invest in new lacquer cutting machines/heads, electroplating, and vinyl printing/pressing machines. Where there are excess profits to be made, new capacity/supply often comes in but my guess is the capital required to design and manufacture new machinery still does not see a big enough market to justify the investment required. So the vinyl market, while growing and stressed by the current levels of demand, is not big enough to attract new investment, and if participants don't believe that this rebound in demand is sustainable and is more of a fad likely to fizzle out over time, then new capital is unlikely to materialize to invest to supply badly needed new machines in all the phases of production of a vinyl record (lacquer cutting, plating, pressing/printing).

[Douglas]

Originally Posted by cmalak

Douglas...thanks for posting. It's interesting because if the supply tightness is so pronounced in so many steps of the value chain in producing a vinyl record, you would assume that capital would come in and invest in new lacquer cutting machines/heads, electroplating, and vinyl printing/pressing machines. Where there are excess profits to be made, new capacity/supply often comes in but my guess is the capital required to design and manufacture new machinery still does not see a big enough market to justify the investment required. So the vinyl market, while growing and stressed by the current levels of demand, is not big enough to attract new investment, and if participants don't believe that this rebound in demand is sustainable and is more of a fad likely to fizzle out over time, then new capital is unlikely to materialize to invest to supply badly needed new machines in all the phases of production of a vinyl record (lacquer cutting, plating, pressing/printing).

I totally agree Cyril. I think you have nailed it on the head. I cannot see significant new investment on a scale that would sustain the current trend.

[jdandy]

Douglas.......Thanks for a most interesting read. The issues outlined in the article have been present from the beginning of the so called vinyl resurgence. Old machines in constant need of parts and repairs, fewer and fewer qualified people to make those repairs to keep presses and lathes working, and lower quality replacement parts when available don't tend to instill confidence in investors. Even with all the hype to promote vinyl, total sales still represent a small figure in a niche market. I don't see it improving.

[aclearspot]

Very good article with a lot about how vinyl records are made.

[Cohibaman]

Amazing how it all boils down to a few key people.