7th September 2022
McIntosh has seen explosive growth in demand for their products since 2020. At the same time, raw material costs have risen 10-15%, lead times have doubled on many parts, and some items have severe shortages and are very hard to find.
McIntosh is managing all these issues by making extensive changes to its production schedule as needed, which includes doubling its raw material inventory compared to 2019 levels to help mitigate sudden material shortages. And the factory is operating 56 hours per week which equates to 40% of overtime compared to a standard 40-hour work week.
McIntosh is also implementing a variety of other changes and updates to help meet increased demand and shorten delivery times:
In February 2022, McIntosh installed a second glass printer, which increased its glass panel printing output from 1,600 to 3,200 pieces per month.
In May 2022, McIntosh installed a new water jet that replaced its 15+-year-old unit that had become outdated, prone to breaking down, and difficult to get replacement parts.
McIntosh broke ground in the Spring of 2022 with a new metal shop, which will expand their existing factory and result in a 50% larger metal shop. They have also purchased two new metal fabrication machines that will be used alongside their existing machines to increase throughput.
The new metal shop should be completed and operational in Fall 2022. The former metal shop space will be part of a new, expanded final assembly area.
McIntosh is on track to increase its factory and warehouse staff by nearly 40% by the end of 2022 compared to the end of 2021. It will have a direct correlation to their monthly production output as they aim to go from producing 1,400 units per month at the end of 2021 to 2,000 units per month by the end of 2022.
All these investments and updates will allow McIntosh to improve its production capabilities further and better serve customers. While McIntosh has witnessed backorders exceeding seven months earlier this year, these updates have already helped them reduce that number to less than four months, and they fully intend to reduce it further.
McIntosh values its customer's patience and support as they work hard to see product lead times diminish. They are now well positioned to continue delivering world-class audio products in a timely manner for many years to come.
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