Peavey Electronics is to close its UK distribution facility, ‘redefining itself in consideration of the evolving and increasingly competitive market’. The announcement comes as the company approaches its 50th anniversary, as part of a restructure of its international operations.
While the cost of manufacturing in China has lowered the cost of 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 minimise international shipping expense but its resources have not been needed ‘for some time’. Peavey expects the changes to improve its 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.
‘Europe is a key market for us,’ says Peavey UK MD, Clive Roberts. ‘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 will announce further details of the restructure in coming months.
