Is this the end of Defiance? My pre23-beck action just went up in value.

[Baker Alvin]

IMO, I, will stand in the Defense, as business owner, 40 yrs this year, I have not seen price increases with this regularity or size.
I do not envy the suppliers, manufacturer or consumer. It is a true circus. Wait till interest rate rise to 15-18% as they were in the 1980's.

 

[FEENIX]

Or the private equity company ( owners/sellers ) purchased equipment for what ever reason ( Taxes ) that could not ROI.
If the new Tooling can produce 500 hundred times more actions than last year but they can only sale 10 times, than tooling is under utilized. In order to support the the new fixed cost ( increase debt ) they have increase sales. Sale more actions or sale at increase cost. I am sure the plan is to do both.

Yep, they addressed that in the podcast.

 

[FEENIX]

This would imply the market is saturated with defiance actions.

In the past year I have not found that to be the case at all. Much the opposite tbh

Or have taken too many orders they cannot deliver promptly; thus, the long wait.

 

[bultinkle]

Or have taken too many orders they cannot deliver promptly; thus, the long wait.

Well that's the thing I guess, if they have the ability to produce 10x their demand why aren't they?

I guess that ability has just been acquired, and the implication is that it was a poor choice for cost of machines per value of production by the previous owners.

I said earlier and say again I don't want them to fail, my interest now is my next tactical action (which I already ordered and it's a defiance) so that's what I pay attention to most at the moment. It seems the deviant and the high priced stuff Increased less than the affordable tactical actions.

My shock is not the concept that they have to recoup investment costs and turn a profit on action sales, my shock is almost why the tenacity even exists at this point when it's feature set is identical or behind the rest of the markets actions that are 500$ cheaper.

 

[FEENIX]

Well that's the thing I guess, if they have the ability to produce 10x their demand why aren't they?

I guess that ability has just been acquired, and the implication is that it was a poor choice for cost of machines per value of production by the previous owners.

I said earlier and say again I don't want them to fail, my interest now is my next tactical action (which I already ordered and it's a defiance) so that's what I pay attention to most at the moment. It seems the deviant and the high priced stuff Increased less than the affordable tactical actions.

My shock is not the concept that they have to recoup investment costs and turn a profit on action sales, my shock is almost why the tenacity even exists at this point when it's feature set is identical or behind the rest of the markets actions that are 500$ cheaper.

Did you watch the podcast?

 

[adam32+P]

If they were truly "weeks" away from closing their doors then their management is worse with finances than the Democrats. None of it adds up, and I quite frankly don't give a dam if they stay in business or not. Plenty of options out there.

 

[bultinkle]

Did you watch the podcast?

Yes

 

[WapitiBob]

Or the private equity company ( owners/sellers ) purchased equipment for what ever reason ( Taxes ) that could not ROI.
If the new Tooling can produce 500 hundred times more actions than last year but they can only sale 10 times, than tooling is under utilized. In order to support the the new fixed cost ( increase debt ) they have increase sales. Sale more actions or sale at increase cost. I am sure the plan is to do both.

Nothing wrong with the new equipment from what I saw of it. Most likely they have the typical shop production and programming guys that talk a good line and are lacking in substance. 30 years in the machining business I've seen it first hand.

 

[sp6x6]

This is only my view as someone who is a neighbor and has friends that work at Defiance.One is a former guide that had a hard time making a reliable living.Hes been there for long time. There business as well as the valley Im in has seen the MOST growth of anywhere in MT. As of last year.They started in a very small place, then moved to another place by me that was first a poor building x rental equipment then cabinet shop.Signifigant $$ had to go into multiple expansions and equipment with all the time all cost related to building increasing.Im a builder and some items where 40 or % increaser year.I remember when I was making small equipment payments when my stuff was parked for the winter.Theres no crystal ball they say. Might have been a bit of to much fast growth added in. And covid worked both ways around here.It put may business permantley out of business.Right now there is a shortage on transformers from local coop.Cant even get power in to new builds. I hope it all works out

 

[SummitsCalling]

Or the private equity company ( owners/sellers ) purchased equipment for what ever reason ( Taxes ) that could not ROI.
If the new Tooling can produce 500 hundred times more actions than last year but they can only sale 10 times, than tooling is under utilized. In order to support the the new fixed cost ( increase debt ) they have increase sales. Sale more actions or sale at increase cost. I am sure the plan is to do both.

Backlog of orders would say otherwise.

 

[oldfamily]

Just seen GA Precision switched to Impact

 

[MostlyUselessLurker]

Just seen GA Precision switched to Impact

I'm surprised there wasn't a thread about that.