Wednesday, March 3, 2010

Composite Acoustics Closes Down Manufacturing

Rumors have been swirling for a while, but it now looks official that Composite Acoustics has closed down manufacturing. Discussions have been ongoing at CarbonGuitar.com and AcousticGuitarForum.com, but now dealers are reporting that they have been told it's over.

This comes as a shock to the many fans and customers of CA Guitars, who have been very emotional about their disappointment. From our view, CA was doing a great job of expanding the awareness and market share of carbon fiber guitars. While we, personally, didn't feel that their acoustics were as resonant and playable as Rainsong's carbon fiber guitars, and we didn't think that their electrics came close to an XOX Handle, we DID think they were fine and that their low price points got a lot of people interested in the owning a composite instrument. Was the fact that their price points were low a contributing factor to their demise? We may never know, but it is very possible.

Another thing we may never know is the old "Who knew what and when did they know it?" question. CA had a booth at NAMM just a short 6 weeks ago and they were signing up new dealers and taking orders. According to at least one dealer, they were told that there are no more instruments remaining at the warehouse and that what's on the street is all that remains. It seems to me that if this were a surprise event, there would still be stock left. In the end, we may never know what actually happened, but what is clear is that the dealers who heavily invested in CA Guitars, like MacNichol Guitars have been dealt a blow and we hope that they recover quickly.

Of course the big question is "What now?" CA Guitars had built up a sizable and devoted customer base so one would certainly think that an acquisition is very possible. The thought of what would happen to the carbon fiber market if they were purchased by a mainstream brand, like Ibanez, Martin, etc. is really interesting. If one of those companies set up a low-cost operation overseas, they may well be able to make the CA Guitar line profitable while keeping their prices low, and this could greatly expand the overall market share of carbon fiber guitars.

We will certainly keep an eye on this as it unfolds.

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