FROM COLLABORATION TO CONSOLIDATION
If 2015 was all about collaboration
I'm going out on a limb and saying
that 2016 might be looking more
at consolidation. On the 2015
collaboration front, we had small
builders like Fuzzrocious and Black
Arts Toneworks building collaborative
pedals with MXR and DOD. Maybe
it's just because craft beer and guitar
effects are my two loves, but I see
a lot of parallels between the two
industries. We've recently witnessed
many craft breweries start to sell all
or a portion of their business to larger
breweries. Sometimes it has been to
increase distribution, and other times
it has happened because a founder is
ready to retire and the family doesn’t
want to continue. I'm predicting the
same sort of thing will be happening
14
TONE TALK //
with effects in the coming years.
Many effects companies are small
businesses with tight margins that
take a lot of heart and soul out of the
founders. A lot of builders will see
the value in getting out on top and
reaping rewards from their hard work.
We've already seen Bearfoot Effects
take on and start re-creating some
fantastic designs from Frantone and
ProAnalog Devices. Granted, in these
cases, Bearfoot resurrected both
companies. But just a few weeks ago,
we saw Brad Fee of Mojo Hand FX
sell his company to Cusack Music.
I won't be surprised to see more
small companies and smaller builders
starting to work together or even be
bought out by larger companies.
2016 Predictions and Trends in the Effects Industry