[TenTec] Ten Tec custom enclosures comment...

[Bob McGraw - K4TAX]

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 at verizon.net>
To: "'Discussion of Ten-Tec Equipment'" <tentec at 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 at contesting.com] On Behalf Of Peter
> Bertini
> Sent: Sunday, May 25, 2014 2:50 PM
> To: tentec at 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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