Companies in this industry are primarily engaged in the manufacture of musical instruments. Major companies include Fender, Gibson Guitar, and Steinway (all based in the US), as well as Roland and Yamaha (both based in Japan) and China's Pearl River Piano.
Demand is largely driven by consumer income and education demographics. The profitability of individual companies depends on cost efficiencies. Many large companies benefit by offering a wide range of products. Small companies can compete effectively by specializing in high-end or niche instruments. The US musical instrument manufacturing industry is highly concentrated: the 50 largest companies generate more than 80% of revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products are string instruments (including violins and guitars), electronic keyboards, pianos, and woodwinds. Other products include brass wind instruments, percussion instruments, and organs. Replacement parts and accessories, such as strings, mouthpieces, and music stands, account for a significant portion of industry sales.