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tgonzo
Boulder climber
SLC, UT
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Topic Author's Original Post - Apr 4, 2014 - 12:51pm PT
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Just heard that BD laid off a bunch of people, including a bunch of management. Things aren't going so well there? Anyone heard about that?
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briham89
Big Wall climber
san jose and south lake tahoe, ca
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I wonder if the clothing launch was a flop.
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Roots
Mountain climber
Tustin, CA
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Sorry to hear about anyone getting laid off.
I wonder if the clothing launch was a flop.
Interesting question! I can tell you that I bought their Crag Jacket and found their sizing and proportions so out of line I didn't fit in a medium or a small. Nice, good quality jacket but so odd on the sizing it made me think I had received (2) defective jackets in (2) different sizes!
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weezy
climber
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Hmm...manufacturing expensive climbing equipment for patrons who are notorious cheapskates. What could possibly go worng?
Re-tool the CNCs to make golf club heads.
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ß Î Ø T Ç H
Boulder climber
extraordinaire
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Honnold better get the freerider soloed, or he could be out of a job.
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Chugach
Trad climber
Vermont
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Wow, I thought they would grow infinitely towards the sky. They've been doing it for the 20+ years that I've been watching.
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sween345
climber
back east
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Reducing the payroll could indicate that the investment bankers are looking to cash out. The clothes line puffed up the product base, layoffs reduce costs. Look for a sell off soon.
Remember that moving production to China (reducing production cost) came just before the initial sell off. It all looks better on paper.
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Jaybro
Social climber
Wolf City, Wyoming
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How is the Chinese economy taking it?
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Jon Beck
Trad climber
Oceanside
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Was Coz right? Is Peter Metcalf going down?
edit - Clarus Corporation bought BD and Gregory in 2010 and merged the three together under the BD name. What did Clarus bring to the table, other than 132 million dollars for the purchase of BD and Gregory. The company now has a market cap of 367 million.
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Spider Savage
Mountain climber
The shaggy fringe of Los Angeles
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If they got into AR15's and Ammo they could get another bump out of that corner of the sporting goods market.
Golf is a great idea!
Tennis anyone?
Bicycles? Motocross?
OOOOOOOoooooo... Motorcycles!
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apogee
climber
Technically expert, safe belayer, can lead if easy
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"How is the Chinese economy taking it?"
Bam!
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Brokedownclimber
Trad climber
Douglas, WY
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One answer: payroll problems caused by Obamacare. Reduction of workforces is occurring across the country in all industries. Nothing but economics at work. Cost per employee goes up; number of employees goes down. They can pay the residual existing workforce overtime and still come out ahead. Get the same amount of work from fewer people.
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Snowmassguy
Trad climber
Calirado
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Private equity will squeeze every single penny out of a business. It is all about making the income statement as shiny as possible. The human factor does not exist....ever.
If you are one of the lucky ones to keep your job, you will happily do double the work for the same salary or feel free to join the unemployed.
Good times....and PE ownership sucks.
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miwuksurfer
Social climber
Mi-Wuk
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I noticed ALL the BD gear at my local shop is made in China now. Wasn't suprised to see this thread pop up.
Correction: I think some said Made in Philippines.
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Bob D'A
Trad climber
Taos, NM
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"One answer: payroll problems caused by Obamacare. Reduction of workforces is occurring across the country in all industries. Nothing but economics at work. Cost per employee goes up; number of employees goes down. They can pay the residual existing workforce overtime and still come out ahead. Get the same amount of work from fewer people."
What a bunch of sh#t....greed is more like. They are playing to their investors and could give a flying sh#t about the workers, it's about the bottom line.
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Studly
Trad climber
WA
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Forget that, I'm buying from the Basque Country in Spain, that's where the Totem cams are made.
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Brokedownclimber
Trad climber
Douglas, WY
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A lot of the smaller companies aren't "playing to the investors," but fighting for survival in the present economy. There's nothing political in my above statement, other than it's factual. It's not pleasant to make a decision about layoffs for economic reasons. First and foremost is survival of the company, and THEN the hourly paid employees. In smaller businesses, the managers will take over some of the more menial jobs just in order to keep their doors open.
I've been through some "belt tightening" in several companies both as an owner and as an upper level manager. They usually start out with the least productive employees such as janitorial, then the "gofer girl," and then the most senior (i.e. "expensive") non-management production workers. Last company I worked for in Oregon had to lay off 10 people but expected the remaining 58 employees to still get the job done. It was either layoffs or corporate bankruptcy. Take your pick. The "survivors" were all happy to keep their jobs.
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Norwegian
Trad climber
dancin on the tip of god's middle finger
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my opinion which is worth
a haystack around a needle:
shitty product.
shitty customer service.
shitty company.
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Toker Villain
Big Wall climber
Toquerville, Utah
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BD going down. Gotta love it, Metcalf was so full of bullcrap.
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Elcapinyoazz
Social climber
Joshua Tree
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There's nothing political in my above statement, other than it's factual.
If by "factual" you mean pulled completely out of your ass with no backing in reality, sure. That's not what most of us consider "factual".
BD is a corporate entity, traded on the NASDAQ as BDE, comprised of a few merged companies. The bulk of their production is done overseas in China and the Phillipines. So please demonstrate to me, exactly WTF "Obamacare" has to do with it?
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ms55401
Trad climber
minneapolis, mn
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How is the Chinese economy taking it?
haha
I laughed
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pyro
Big Wall climber
Calabasas
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so sorry to hear BD is dropping their people!
i still purchase BD cam's!
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Dolomite
climber
Anchorage
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Metcalf may or may not have been full of bullcrap, but it won't be him that's going down.
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Kalimon
Social climber
Ridgway, CO
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There are not enough wealthy consumers of BD gear to support the numerous "sponsored athletes" that get the stuff for free. We are not all trustafarians.
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Grippa
Trad climber
Salt Lake City, UT
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So where are the facts? This thread is a bunch of speculation, and bs.
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jstan
climber
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BDE financials:
Stock performance
I tried to download Metcalf's review of the last four quarters but it required me to divulge personal info.
Total revenue for the past four quarters is near two hundred million dollars on which a loss of a little less than six million was experienced (3%). Q1 2014 evidenced renewed revenues and profit with a slight improvement in operating income/loss. A non recurring charge off of $318,000 was taken in the past quarter. I have not located information on capitalization.
The stock price and volumes do not seem to indicate any untoward trends. I made no attempt to examine the parent corporation. That would be the next thing to do.
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Grippa
Trad climber
Salt Lake City, UT
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referring to Q1 numbers doesn't tell the entire story. all outdoor manufacturer and retail numbers suffer in Q1 and Q2.
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Brokedownclimber
Trad climber
Douglas, WY
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Based on all 4 quarters, they're not doing well at all. They need to cut their expenses some way, and reduction of workforce is the quick and dirty way to do that.
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Sanskara
climber
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Other than C4 's I could do with or without their sh#t. Even ice screws I'd be happy with Grival .
Imop their design and overall quality leave little to be desired with so many willing to try so hard to stand out above the crowd. Their packs to date have been crap and that new clothing line just looks like low quality garbage to me. Really to me its mostly low quality crap..
Sure they nailed the new Cobras, C4's and ice screws. I would not want to be without 2 of 3 of those things but I would live just fine without them.
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Lynne Leichtfuss
Sport climber
moving thru
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Who expects anything to remain the same? Life and business is all about change and learning to live with some pretty big ups and downs. I think it was the 70's maybe that bicycles were no longer popular. Many stores went out of business. Now that industry is again booming.
As far as employment goes, usually if you work hard and are good at what you do you will either keep your job or find another one. I've always liked Black Diamond. lynne
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tooth
Trad climber
B.C.
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What StupidTaco probably did'nt notice is that BD belay parkas are the only ones NOT cut with a maternity cut. I just tried on one from every manufacturer represented in Vancouver, and this is the only one that was slimmer around the middle than around the chest. It got a lot of ice climbing/belaying in this winter.
So maybe that is why they get all the hate around here. Isn't this place old guys with beer-bellies?
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johntp
Trad climber
socal
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Welcome to the global economy. The company I work for is shifting work to Manila, New Delhi and Korea that used to be done in the US. My job is in peril on a day to day basis based on management whim to meet the shareholder expectations.
As far as employment goes, usually if you work hard and are good at what you do you will either keep your job or find another one.
Not the case anymore Lynne. Based on recent experience, most work, both professional and blue collar is going overseas. We used to have a lot of engineering and manufacturing done in the US. Not anymore. Very little is being executed in the US these days.
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nature
climber
Boulder, CO
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Blaming it on Obamacare is beyond laughable
Hey Fatty... is it time to short BDE? ;)
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Lynne Leichtfuss
Sport climber
moving thru
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Tooth, funny but maybe true :)s
Johntp, what is better or are they equally challenging....a privately held corporation or one that does the crap shot on the stock market?
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johntp
Trad climber
socal
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Johntp, what is better or are they equally challenging....a privately held corporation or one that does the crap shot on the stock market?
I don't understand the question.
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nature
climber
Boulder, CO
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I think I understand the question. I believe the answer is "it depends".
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nature
climber
Boulder, CO
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who is "you".
it seems like what lynne is asking is what is really in the best interest of the company. private held or "public"? to which i say "it depends".]
and if that isn't here question that's still my answer :)
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johntp
Trad climber
socal
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it seems like what lynne is asking is what is really in the best interest of the company. private held or "public"?
Thanks for the clarification nature. The company I work for is a Fortune 500 company that has been public for probably 80 years. Management is accountable to the shareholders, not the employees. Hence the movement of work previously done in the US to more "cost effective" overseas locations.
The company used to occupy 5 buildings in SoCal. Now we occupy 1.5 buildings and are building an 18 story office in Manila.
edit: apologies for the thread drift, but it seems relative.
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mooser
Trad climber
seattle
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From zero - inflammatory speculation and name-calling in 60 seconds.
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Lynne Leichtfuss
Sport climber
moving thru
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Kos, there's that great sense of humor again, you too Nature.
What I was asking or wondering....It seems to me that (depending on the ownership of course) a privately help corp. that does not have to keep market shareholders happy might be more user friendly to the employees.
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Elcapinyoazz
Social climber
Joshua Tree
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^^^
Depends. Here's an example. My mother spent a time working for Georgia Pacific. GP was a publicly traded firm (one of the largest paper and pulp companies in the world). Employees were treated very well with good benefits while it was public answering to shareholder. My sister had worked for them for a long time and recommended it highly to mom when she was downsized after almost 30 years with another firm.
Then, in 2005, Koch Industries, the second largest private firm in the country, bought out GP and took it private. Within about 2 years, employees were leaving in droves. Including Mom. Morale was low, employees felt they were treated much worse. Anecdotal, but true.
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WanderlustMD
Trad climber
New England
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I've never had issues with their gear and I've used it a lot. Hope they are around for a while
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stuv
climber
pas de montagnes
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were the layoffs at the factory in SLC or China?
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Brokedownclimber
Trad climber
Douglas, WY
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Anything that adds to the above salary "cost per employee" is reviewed by the corporate directors as being accountable to shareholders. My comments about Obamacare above were not meant to be funny or specious. Many corporations with long-standing health care plans have been adversely affected. Having been involved in the management of 4 businesses over my career, the number normally used in computing the costs of a new hire (or a layoff!) is based at agreed salary plus 20%. That covers vacation time, and benefits package in addition to FICA and unemployment insurance. Anything which affects that number is viewed adversely by the board of directors as affecting profitability.
That said, based on BD's spread sheet, I would be very leery of investing my money in a company losing that kind of $$$. It doesn't matter to sophisticated investors if the company is making great climbing hardware or sewer lids. I personally hate to see the legacy of Yvon Chouinard sent to China to get fukked up. I still have several "original" Camalots with the "Diamond C" maker's mark.
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Gene
climber
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Brokedownclimber,
Salary plus 20% seems light to me. Depending on what's involved, 25% to low-30% range seems more realistic.
g
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Largo
Sport climber
The Big Wide Open Face
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Blaming things on Obamacare is really saying that the preposterous, exaggerated figures associated with American health insurance - however you shake it - is starting to take the country down. The financial aspect of the entire healthcare system is totally out of whack, but since here in the US the profit motive is attached to virtually everything (or it's not American), I think the whole thing is going to have to collapse before a socialized system is finally in adopted as the only viable option. Shifting monies from other sectors will happen over people's dead bodies because people won't be "done out" of a dime for you or anyone else.
The whole healthcare system is a house of cards so far as I can tell. If you have great coverage the care is world class. But sooner or later it simply won't be affordable for anyone. This is going to get ugly, I think because businesses will start folding.
JL
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bluering
Trad climber
Santa Clara, CA
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If by "factual" you mean pulled completely out of your ass with no backing in reality, sure. That's not what most of us consider "factual".
BD is a corporate entity, traded on the NASDAQ as BDE, comprised of a few merged companies. The bulk of their production is done overseas in China and the Phillipines. So please demonstrate to me, exactly WTF "Obamacare" has to do with it?
So who is getting laid off then? Chiners and Philippinos?
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Gene
climber
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Chiners and Philippinos?
Come on, Bluey. You can do better than that.
g
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hagerty
Social climber
A Sandy Area South of a Salty Lake
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Does anyone have a link to an actual news article instead of speculation? I haven't been able to find anything.
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ms55401
Trad climber
minneapolis, mn
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BD belay parkas are the only ones NOT cut with a maternity cut. I just tried on one from every manufacturer represented in Vancouver, and this is the only one that was slimmer around the middle than around the chest.
really? you tried on the Patagonia DAS and the ArcTeryx equivalent, as well as what RAB is offering in this segment, and found the BD item to be the slimmest of the bunch while still functioning as a legitimate belay parka (i.e. sufficiently warm, with a hood, with the double-zipper thing to accommodate the belay tube)?
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Brokedownclimber
Trad climber
Douglas, WY
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Gene-
You're correct; I've been retired too long! I'd say 30-35% in today's economy. It should have been typed as 30%, not 20%, by the way. A lot depends on company size and number of employees. I'd guess the "Big Pharma" would possibly use 40% because of all the high level professionals employed. My son works as a biochemist for Merck, and from his seniority, gets 5 weeks a year vacation. That doesn't come free to the shareholders. So far he's made it through 2 rounds of layoffs, too.
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mouse from merced
Trad climber
The finger of fate, my friends, is fickle.
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Sell BD.
Buy Kimberly-Clark.
And it don't depend on nothing more than faith
in growing numbers who experience urinary or fecal incontinence.
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Brokedownclimber
Trad climber
Douglas, WY
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Mouse is right! With all the schitt around, there's an overwhelming need for toilet paper!
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Lynne Leichtfuss
Sport climber
moving thru
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Ohhhh, Mice do say the darndest things.
This has been (generally) a good thread to read. Learned a bit from most of you. Guess the bottom line is there really is no over all equation for success. Like a chameleon, a business and their employees have to keep adapting to current changes while trying to for see the future. Cheers, Lynne
Edit: Is your weather today as perfect as our in No. San Diego County? It's a 10 for sure.
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Brokedownclimber
Trad climber
Douglas, WY
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Largo is correct about the entire healthcare system needing overhaul, and he's also correct that things are going to get ugly before things get better.
I worked "with" big Pharma, and not "for" them for almost my entire professional career. My company manufactured various "feedstock" or starting materials which were ancillary to manufacture of licit pharmaceuticals. I finally "bailed" in 2004 because of the burgeoning and overwhelming regulatory issues that were rapidly becoming too much for a smaller manufacturer. I sold out my technology to a larger company and went to work as a "consultant" until 2009, and let them worry about the FDA, OSHA, EPA, and several other agencies. Add in the ever increasing health care costs, and other burdensome issues, I was glad to sell and close my doors after a successful run of 26 years.
Why are all the American companies running overseas? Why is BD having "problems?" My answer is not labor costs directly, but the escape from having to deal with Federal alphabet soup agencies and have specialists employed full time to do so! I absolutely LOVED doing the work of my career choice, and I also realize there's no way in H*&l I would start another manufacturing company in the USA. No. Way.
BD is obviously feeling the pinch pretty hard from their earnings report JStan posted. I don't know how many employees BD has presently, but any "bump" in healthcare costs which are significant could lead to layoffs.
Also is the possibility of major sales downturns in the marketplace; this is an example of a "niche" business feeling marketplace volatility.
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Largo
Sport climber
The Big Wide Open Face
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I didn't want the topic of BD doing down to become a rant for healthcare, but it's just that most of family have been in medicine (dad, sis, oldest daughter) for ages and I've heard about the crazy dollar wrangling involved over what has become in many instance a most shameless cash cow. Perhaps BD is not sinking for that reason, if indeed they are, but I expect that as the crisis keeps worsening, and people actually start dying, and everyone involved with health care keeps demanding six figure pay checks, America the Brave is going to hit the speed wobbles like crazy.
I hope BD makes it. Peter Medcalf has always been a bro to me.
JL
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James Wilcox
Trad climber
Goleta/Virginia Lakes
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Looking at BD's 2013 10K report that was released in March, their operating expenses took a 30% increase over 2012. BD attributes the increase to the acquisition of POC Sweden and PIEPS Holdings. POC makes safety gear and PIEPS does beacons.
The 10K has a positive outlook for fiscal 2014.
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Ward Trotter
Trad climber
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I am not anywhere close to a business or financial expert but it seems to me that BD is suffering the same fate that many companies are undergoing in a rapidly shifting technological/economic environment.
Perhaps the Siren Servers that are crunching reams of data ,as we speak , are telling the owners of BD something that cannot be ignored about their operating stats, their customers, and the future of their business --- in a way that has dictated that they currently pursue a policy of contraction, instead of stasis or expansion.
One thing is futuristically probably certain in the long run: don't be surprised if climbing equipment, in a decade or two , is largely manufactured locally , either in homes or small local factories where 3D printers running on downloaded design software will crank out rope, sling, carabiners ,and cams at fairly low price.
Imagine the savings in transportation and its environmental and energy costs if many consumer items are eventually produced in this or a similar manner.
The obvious downside will be a further hollowing out of the middle class in the massive loss of jobs---something you can see happening throughout developed societies even as we speak.
Think of what has happened to the music industry since the advent of digital networks---an industry that once supported a robust middle class.
Think of Kodak that once supported a work force of 140,ooo with a budget of 25 billion in its heyday. Today: Instagram , with a budget of I billion, employing 13 people.
We are indeed living, and will continue to live, in interesting and challenging times.
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Jon Beck
Trad climber
Oceanside
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BD was bought out by Clarus. The last venture Clarus was involved in was Armor Inc, a defense contractor that got into a lot of trouble, allegedly selling defective gear and attempting to pay bribes. It appears that the only asset Clarus bought to the merger in 2010 was losses carried forward. The merger might have been a good ploy to boost stock value so insiders can bail out. BD and Gregory provided the vehicle to do just that. Found this interesting blog from 2010 when the merger happened, the most interesting material is in the comments that follow the blog.
http://climbingnarc.com/2010/05/black-diamond-equipment-gregory-mountain-products-acquired-by-clarus-corp/
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couchmaster
climber
pdx
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^^^^Yup, it's all about the money and being able to look the shareholders in the eye. The easiest and fastest way to traditionally decrease your expenses is to reduce payroll. ^^^
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overwatch
climber
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Apr 18, 2014 - 01:36am PT
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Lot of good that link does
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the kid
Trad climber
fayetteville, wv
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Apr 18, 2014 - 08:55am PT
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Wow. I have not been on here for ages and when i do.. BD layoffs due to Obamacare? Wow- do you guys just sit around all day on the computer or do you still climb?
BD- now a publicly traded company and with that the PRESSURE to PRODUCE PROFITS as fast as they can for their share holders. When in that situ, things get cut, staff gets cut, more work dumped upon fewer people- just Ask Mitt and he can explain the wonders of capitalism.
Their product is solid, and they are looking to dominate in every category that they can, that is their agenda, like it or not.
Is this good for climbers, yes if you like the prices your paying for the products that are no longer made here. But that is the way of the world, so either get used to it or buy another brand..
ok i will leave now and let you guys toss me around with this thread. see you in 6 months..
Kurt
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miwuksurfer
Social climber
Mi-Wuk
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Is anybody really suprised by this move from Clarus Co.?
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deuce4
climber
Hobart, Australia
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yowtch, those are bad numbers for 2013--big loss. I'm surprised, as Metcalf always seemed like a sharp and conservative business leader--but perhaps they heavily invested in the mentioned clothing line?
I reckon they will need to get lean and clean to push back into the black. They can start by scrapping all that extra junk they added to the A5 portaledge design, and bring back the lean and clean lighter weight Alpine Double! ;)
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johntp
Trad climber
socal
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Is BD management out of their freaking minds?
Shorts: $150
Shoeller Jeans: $180
T-shirt: $70
WTF? I'm not afraid to drop a dime or two, but those are ridiculous price points. Pattagucci gone wild.
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HighTraverse
Trad climber
Bay Area
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I've recently done some comparison shopping for a "belay jacket"
Relative price for similar product?
Arcteryx - highest
Patagucci - BD similar for similar products
Mountain Gear - only slightly less with I think an inferior product
Marmot a bit cheaper than MG.
REI had their only BD for 1/2 price so I bought it.
And yes, the waist IS a close fit. If you ain't fit it might not fit.
None of these guys are selling in high volume except perhaps MtGear.
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sandstone conglomerate
climber
sharon conglomerate central
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Wait, what about North Face? Isn't their Chinese made sh#t still up to par? I see everyone wearing it, so it must be good.
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HighTraverse
Trad climber
Bay Area
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Did anyone find out if BD really had layoffs and how many?
What about the couple of BD staff who posted here a few times?
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kunlun_shan
Mountain climber
SF, CA
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Stolen/copied from http://www.backcountrytalk.earnyourturns.com/vb/showthread.php?1043-future-of-black-diamond-skis/page2
Black Diamond has laid off employees at its U.S. headquarters in Salt Lake City as part of apparent restructuring at the company, SNEWS has learned.
While the exact number isn’t available, at least a dozen people are suspected to have lost their jobs or are moving on, several sources familiar with the situation tell SNEWS.
Black Diamond officials declined comment on the news, stating that as a public company any information would first have to be disclosed to the markets. It is unclear whether the layoffs are just at the Black Diamond brand or if they involve the wider scope of Black Diamond Inc., including Gregory Mountain Products, Pieps and Poc Sports. The departed include some significant names in Black Diamond’s product division leadership including Ski Category Director Thomas Laakso and Packs Category Director Nathan Kuder. Laakso helped develop a less toxic and more efficient ski manufacturing process that Black Diamond used at its new ski manufacturing plant in China and Kuder played a key role in Black Diamond’s new fan-powered avy airbag, which made its big splash at Winter Market 2014.
It’s no secret that parent company Black Diamond Inc. is facing potential changes as it deals with an evolving business and budget realities. The company burned through cash to acquire Poc Sports and Piepsin 2012, and launch its apparel line in fall 2013.
As of December 31, 2013, Black Diamond Inc. reported cash reserves of $4.5 million with a total debt of $38 million with $19.7 million left available on a revolving line of credit In February, Black Diamond Inc. CEO Peter Metcalf revealed to investors that the company is exploring options to sell either all or parts of its Gregory Mountain Products brand to help fund future retail and e-commerce investments,
At that time, Metcalf indicated the company would shift from its recent acquisition strategy to focus on organic growth, particularly at Poc Sports and Black Diamond Apparel, as well as seek a senior executive leadership candidate for its lifestyle brand management and general management, specifically in the areas of apparel, retail and e-commerce. Black Diamond Apparel and POC independently represent the company’s most significant long term opportunities for compounded multi-channel multi-year revenue growth and profitability,” Metcalf told investors. “We prefer to invest our capital resources in the growth and development of our fastest growing assets, rather than acquiring additional brands.
While Black Diamond doesn’t release brand- or category- specific results, at least one analyst on Wall Street told SNEWS he isn’t surprised to hear some of the cutbacks coming from the hardgoods side of the business. “It would seem natural,” said Andrew Burns, a research analyst with D.A. Davidson & Co. “We believe the core equipment side of the business, excluding apparel, has slowed somewhat, which we see as part of a general slowdown across the outdoor industry.”
In November 2013, D.A. Davidson downgraded Black Diamond stock from buy to neutral based on those concerns, he said. But beyond those immediate hurdles, Burns said, “we still think it’s a well run company with great plans.”
David Clucas- April 16, 2014
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miwuksurfer
Social climber
Mi-Wuk
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he isn’t surprised to hear some of the cutbacks coming from the hardgoods side of the business.
I bet pins, hooks, etc will be the first to get the chop, then they will move what little manufacturing remains stateside to the China plant.
Clothes sell a lot better than all that low margin climbing gear.
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JLP
Social climber
The internet
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A dozen people out of a large organization isn't a "layoff" - it's called "weeding" - and it's generally a good thing.
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miwuksurfer
Social climber
Mi-Wuk
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A dozen people out of a large organization isn't a "layoff" - it's called "weeding" - and it's generally a good thing.
I'm sure those dozen people feel a lot better knowing they were weeded out, as opposed to being laid off.
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miwuksurfer
Social climber
Mi-Wuk
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China is evil.
Can't have gear manufactured here.
Please don't put words in my mouth. It doesn't matter really if they opened their assembly plant in China, India, or Australia. They obviously did not do it to increase the product quality or reduce cost for the consumer.
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stevep
Boulder climber
Salt Lake, UT
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Please don't put words in my mouth. It doesn't matter really if they opened their assembly plant in China, India, or Australia. They obviously did not do it to increase the product quality or reduce cost for the consumer.
They might not have done it to increase quality, but manufacturing in China doesn't necessarily mean bad quality. Apple is generally regarded as pretty high quality stuff, and mostly made in China. And I think BD's gear stuff made there is still made to 6-Sigma standards.
And while they may not be dropping prices, it may help to keep prices low. Judging by the financials mentioned above, it's not like they are running Apple-type margins on the stuff.
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blahblah
Gym climber
Boulder
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I'm sure those dozen people feel a lot better knowing they were weeded out, as opposed to being laid off.
Depending on whether they applied for unemployment benefits, it could make a big difference (in general, laid-off -> get benefits, fired for cause -> no).
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Moof
Big Wall climber
Orygun
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A dozen people out of a large organization isn't a "layoff" - it's called "weeding" - and it's generally a good thing.
All too often it is really just silencing the dissenters. Those who have been ringing the alarm bells that management has their heads up their off-width and are taking the company in the wrong direction often get canned before the non-performing suck-ups.
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johntp
Trad climber
socal
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All too often it is really just silencing the dissenters. Those who have been ringing the alarm bells that management has their heads up their off-width and are taking the company in the wrong direction often get canned before the non-performing suck-ups.
Very true.
edit: If BD management thinks they are going to save the company by selling $150 shorts and $180 jeans, I want what they are smoking.
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JLP
Social climber
The internet
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With your razor sharp tongue you've probably been weeded a few times yourself. After efficiently clearing my considerable angst here, I'm all smiles and yeses when I step away - they love me - in fact I'm probably one of the easiest guys in my group to work with. Same fuk'n job for the past 16 years, never weeded - seen a lot of it, though.
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sandstone conglomerate
climber
sharon conglomerate central
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Exported labor, the bane of the USA. BD sold out, and these are the consequences.
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mwatsonphoto
Trad climber
Culver City, CA
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Apple is generally regarded as pretty high quality stuff, and mostly made in China.
I could be wrong, but I thought Apple products were assembled in China. Parts being made in Germany, Japan,...
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johntp
Trad climber
socal
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As of December 31, 2013, Black Diamond Inc. reported cash reserves of $4.5 million with a total debt of $38 million with $19.7 million left available on a revolving line of credit
If this is true they are in a state of delusion.
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kunlun_shan
Mountain climber
SF, CA
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http://www.snewsnet.com/news/black-diamond-to-streamline-some-product-categories-shuffles-leadership/
By David Clucas - May 5, 2014
Black Diamond Equipment plans for a “very meaningful and substantial” reduction of its gear and equipment SKUs and could exit one or two product categories later this year as part of a restructuring plan first reported by SNEWS in mid-April.
The latest changes, announced May 5 during the company’s first-quarter 2014 earnings conference call, include the resignation of Black Diamond Equipment President Ryan Gellert and the promotion of Tim Bantle as Black Diamond’s global brand manager.
“We are appropriately and thoughtfully realigning our resources toward those with stronger growth potential … both from a profit standpoint and meaningfulness to the brand,” said Black Diamond Inc. CEO Peter Metcalf. ”Looking at the numbers, we understand that we love product and our teams have allowed us to get too much product and it just doesn’t pay back on itself,” he told investors. “We believe that we’ll be much more efficient with a greatly reduced SKU count.” He said more details would emerge in the next quarter, as well as a likely conclusion to the brand’s exploration to sell its Gregory brand.
As SNEWS reported a month ago, Black Diamond Inc. (NYSE: BDE), parent to its namesake brand, along with Poc Sports, Gregory and Pieps, is shuffling both operational and financial resources to better align with its faster growing areas — Poc and Black Diamond apparel. The company reported its first-quarter 2014 revenue up 7 percent to $54.5 million, largely thanks to gains from those two segments, officials said. Quarterly net income came in at a loss of $1.3 million, albeit an improvement versus a loss of $3 million a year ago.
Despite the realignments, Metcalf reiterated that Black Diamond remains committed to its hardgoods gear core that has defined the business.
“We want to curate those categories,” he said. “And we can do it with a tighter budget and a tighter group of people.”
The potential move to a smaller, more focused product lineup may not come as a big surprise with Bantle, Black Diamond’s former director of apparel, taking a larger leadership role at the brand. In prior interviews with SNEWS, Bantle has stressed the importance of reigning in SKUs and production runs to combat rampant retail discounting.
“I continue to see a movement toward a totally curated wardrobe,” he told SNEWS a year ago. “People are buying nicer products and fewer of them. I can’t say that this is necessarily what is happening in the apparel category as a whole, where outlandish use of color or down market retail pricing have dominated the market for the last several years, but it’s right for us as a brand.”
In addition to Bantle’s promotion, Martijn Linden (previously the brand’s apparel design director) was promoted to vice president of merchandising and design of apparel; and Thomas Hodel (previously Black Diamond’s European product manager) was promoted to global ski line product manager based out of Basel, Switzerland. The company also recently named another European, Niclas Bornling (formerly with Salomon), as global vice president of marketing. The global nature of the hires and promotions reflect the company’s growing international sales, Metcalf said, which now account for more than 50 percent of the business.
The company is interviewing candidates for a new position of president of Black Diamond Inc., the parent company, with Metcalf remaining CEO.
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