Ron make some very good points.
From my experience it may be that "business unit A makes a profit" and that
"business unit B makes a profit". For given dollars invested, business unit
B makes more profit per dollar invested than business unit A. Therefore,
the business decision to eliminate the unit making less profit per dollar of
investment and put those financial resources into the unit that makes more
profit is usually a wise one.
Now these types of decisions hinge on many factors such as; space required
for operation, cost of space, age of equipment, depreciated value of
equipment, cost to maintain equipment, percentage of utilization and a host
of other factors.
I worked for a company that built and owned their own manufacturing
buildings. Every 10 years they built a new building, moved and demolished
the old building and sold the previous real estate. At the time, that
seems expensive and very wasteful to me. However once explained to me, the
old building was fully depreciated via tax laws to zero value except for the
real estate. During the 10 year period of occupancy there were few needed
repairs or replacements required to the systems, HVAC, roof, plumbing
electrical and such. During the 10 year span the old building was found to
be less that suitable for the current manufacturing operation. So 10 years
later, a new building much more suited to the new current operation and with
all new facilities was the better deal. Thus little to likely there would
be no facility expense in the form of HVAC systems needs, minimal to no roof
repairs, no electrical system updates, no plumbing updates/repairs and much
more energy efficient and such. And the depreciation cycle starts all over
again.
73
Bob, K4TAX
----- Original Message -----
From: "Ron Notarius W3WN" <wn3vaw@verizon.net>
To: "'Discussion of Ten-Tec Equipment'" <tentec@contesting.com>
Sent: Monday, May 26, 2014 8:58 AM
Subject: Re: [TenTec] Ten Tec custom enclosures comment...
Well Pete,
There are a couple of possibilities here.
First off, it may be the case that the custom enclosures unit of Ten-Tec
is
profitable, but for any of a variety of business reasons, the new
ownership
no longer wishes to be in that segment of the business.
So, it is very possible that the unit may be "spun off" to someone else
and
still operate, simply as an independent company.
Or, the unit and its equipment might be sold to an existing company.
Second, there may already be an existing firm available to RF Concepts
that
may be able to make the enclosures for them cheaper and more efficiently.
This is a reasonable assumption if Ten-Tec's enclosure equipment is old,
out-dated, and/or expensive to update. So if this is the case, it would
be
more cost efficient to use the outside firm to make these for them.
Hopefully, the existing firm is relatively local. But we all know that it
may be off-shore. Such are world economics today.
There is also a third option, although I suspect this one might be
unlikely.
It's also possible that RF Concepts might re-evaluate and decide to keep
the
business unit after all.
The company may also have decided that they are going to be busy enough
that
while they will still make their own enclosures and custom moldings, they
aren't going to do it for others in the future. Again, this may come down
to the economics... it's cost effective for them to make their own
enclosures, but with the added ancillary costs, it's not cost effective
(ie
not profitable enough) to do so for others.
I'm sure we'll find out in due time.
Which all reminds me, I really need to get back to my little project of
building a new tuner inside that old MN-2000 shell I picked up...
73, ron w3wn
-----Original Message-----
From: TenTec [mailto:tentec-bounces@contesting.com] On Behalf Of Peter
Bertini
Sent: Sunday, May 25, 2014 2:50 PM
To: tentec@contesting.com
Subject: [TenTec] Ten Tec custom enclosures comment...
I couldn't find the original thread, but here is my concern... I own
several Ten Tec rigs, from VHF FM transceivers to my HF rigs: a Paragon
II
and an Omni VI.
I'd surmise that Ten Tec has always made the enclosures and provided the
metal working for their rigs, including the cabinets, injection molded
front panels, etc. It would seem that the custom enclosures were an
efficient use of existing manufacturing equipment that supported their
main
product lines.
If they need to give up the injection molding and machine shop stuff, who
is going to provide the enclosures for future ham equipment? Is Alpha
taking over that aspect during manufacture?
Pete
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