NAMM Announces Cost Management Initiatives Following Economic Downturn

NAMM today announced a workforce reduction affecting eight individuals in an effort to better manage costs and balance its budget.

The global economic downturn and slower recovery period have greatly impacted NAMM Members and the international music products industry more than anyone could have anticipated. In 2009, facing an estimated 17 percent overall decrease in U.S. industry sales, NAMM Members reduced all marketing costs including trade show spending, thereby reducing NAMM's income.

During this same period, NAMM experienced enormous legal costs associated with an investigation into the music products industry's use of MAP pricing and subsequent civil court class action suits. All of these factors contributed to the association's decision to reduce its staff.

While early indicators for the NAMM Show in 2011 show a modest increase over last year, it's clear that NAMM's income will not be back to '08 levels this year and might not be for some time.
 
"During the historic economic downturn, and in this slow recovery period, our Members cut costs in every aspect of their businesses. We support those decisions and understand that our Members' long-term success is our number one goal," said Joe Lamond, president and CEO, NAMM. "And given these industry changes, it's important that NAMM is sized correctly for our income levels so the association can continue to fulfill our mission and create more music makers."

Following the reduction, NAMM currently has 63 full-time employees including five full-time employees at the NAMM Foundation's Museum of Making Music. Prior to reducing staff, NAMM worked to reduce its fixed costs and overhead in every area possible without negatively impacting Member services or programs. During the past fiscal year, NAMM's trade shows, government relations, music education advocacy, market development, public relations, grants and scholarships, and Member service program budgets have remained strong and these efforts continue to deliver value for the music products industry.