The Circle Game – Acoustic Guitar Suppliers Discuss the Market

While fans and retailers of electric guitar impatiently await the next “guitar hero” to revitalize that segment of the market, acoustic guitar sales continue to climb (see our dealer survey on page 50).

Lower price points at the entry level, portability, and increased visibility via a number of big-name acts favoring acoustic six-strings are some of the factors that have established acoustics as winning product for a number of MI stores throughout the country.

MMR recently gathered five key players in the realm of acoustic guitars to get their take on trends effecting the industry, what products are flying off the shelves, and what they foresee for the coming months.

For a while now, sales of electric guitars for many dealers have been (at best) flat, if not trending downwards while acoustic guitar sales are, generally speaking up. Why do you think that is?

Brian Piccolo: We feel there are several reasons for this shift to acoustic guitars over electric. Part of it is the shift in current popular music. Acoustic guitars are being used more often on stages and studios than in recent years. Many artists from country to pop – even rock – are hitting the road on small venue tours, connecting with audiences, and proving their skills with acoustic sets.

Many of the electric guitar players we have spoken to lately mentioned that they are adding more acoustic guitars their collection. They are wanting to add something new to their already extensive collection of electric guitars.

Also, an acoustic guitar is self-contained, so it’s a lot easier to get into. Whether beginner or advanced, guitar players enjoy the ease and convenience picking up and playing an acoustic whenever the urge or inspiration strikes.

Tom Bedell: Our music is where and when we express our hearts… our love, our burdens, our dreams, and our stories. It is when we are the most honest in our expression and most real with who we are. The connection between the organic-ness of the world’s forests and our music is real. The music we create on our acoustics is our music – not produced or technically modified. It is us.

Monte Montefusco: The industry is enjoying an extraordinarily strong sales cycle where the acoustic guitar market has been delivering significant growth for years. The economic challenges that began in 2008 changed the way new guitarists started making music. The acoustic guitar embodies authenticity and comfort in times of uncertainty. Rather than aspiring to be the next electric guitar hero, players turned to a more organic approach. The rise of social media enabled musicians to share their music without the need of a full band and live venue. In addition, baby boomers are realigning their music making toolboxes. As they refine their musical tastes, they have the financial capacity to enhance their acoustic guitar collections.

Tom Watters: I think there are a variety of reasons for this. Acoustic guitars are a great instrument for “hanging out” with friends and family. They are portable and immediate. With so much music being recorded at home these days, an acoustic is ideally situated for the home creative process – maybe more so than an electric guitar through a half-stack. Acoustic guitars are beautiful works of art that add to the comfort and grace of a home. When you decide to perform live, it has never been easier than now to bring an instrument to the stage. With today’s preamps and pickups it is actually a joy to amplify an acoustic. They have come a long way in the last decade.

Brian Cleary: Ironically I think technology has played a big part here with YouTube, and similar, giving an audience to the acoustic player that they never had before. Somehow the video camera can create a very intimate experience that works so much better with someone playing an acoustic rather than perhaps a band.

This new exposure has in turn created an appreciation for acoustic music, which venues now want to book because it’s current. It’s all together been a very exciting time for the acoustic musician and so it continues.

Armando Vega: My personal opinion is that the current musical climate is influencing the interest in Acoustic Guitars. Pop-country is at an all-time high. New folk and singer writers are still very popular. Finger style guitarists like Tommy Emmanuel and Andy McKee are bigger than ever. Then there is Rodrigo y Gabriella who are a global phenomenon, at this point. All of this in general, is inspiring aspiring musicians to pick up their acoustic guitars. I also believe that YouTube and other social outlets have created new avenues for musician’s to share their music with the world. The acoustic guitar is a great vehicle to work within that environment.
 

For your own company, how are acoustic sales currently compared to this same time last year?

AV: We are doing quite well in the acoustic market, and if all goes well by the end of the year… we will top what we achieved last year. Our sell through numbers are very healthy. That’s not to say that this year doesn’t have its challenges. That being said, the acoustic guitar market and Yamaha Guitars are in a good place, which makes over coming those challenges a lot easier.

MM: Taylor sales have continued to outpace the acoustic category and demand for our instruments has kept our manufacturing team working overtime. Year to date, we’re significantly ahead of our 2014 performance. We’re fortunate to be sharing this success with our valued dealers and distribution partners.

TB: For the first half of 2015 we are 25% of last year in shipments. It is a good year so far.

TW: It’s hard to say with the Takamine brand, as we have just been awarded distribution in March of this year, but we have been very encouraged by the rapid acceptance of the brand back into the market. Takamine’s a great brand that has been handcrafting guitars for over half a century! We’ve created a lot of songs, and clearly a lot of great memories. We’ll keep doing that for generations to come.

BC: Faith Guitars has enjoyed significant year on year growth over the last six years with manufacturing capacity being the biggest restriction. It’s why we’ve taken so long getting into the US market. We had to be sure we could fulfill a US demand before marketing to such an important market. Through our new distribution agreement with Connolly Music we’re very excited about Faith Guitars in America and what the next few years has in store for all of us.

BP: So far in 2015 we are seeing nice growth year over year and we are expecting this to continue for the rest 2015.
 

What specific models are the hottest sellers for your brand at the moment?

TW: We continue to have robust sales on the EF341SC, a Takamine icon, as well as our nylon string workhorse, the TC123SC. The handcrafted Japanese guitars in general have experienced a tremendous upswing as the market seeks high quality and honest value. We’ve been really excited by the response to our new TT Series of guitars that incorporate “Thermal Top” technology. These “thermal” spruce tops just sound terrific and bring added depth and maturity to the instrument’s sound and feel.

BP: Our T100ASCEBLK slim line cutaway electric has been our best seller so far this year. The guitar offers an Auditorium slim body shape and its rich finish and detailed features give it a lot of personality. It is extremely comfortable to play and offers a warm rich tone for a slim body guitar at great street price.

BC: Demand for smaller and smaller body sizes, from Auditorium down to Parlor, seems to be now turning a corner with artists starting to explore what the larger body shapes have to offer once again. Many players are also becoming more sophisticated, buying with their ears, and perhaps not being so seduced by just “bling.”

AV: For Yamaha the top sellers are in the FG & FS Series, something that we’ve been doing proudly since 1966. This also includes the acoustic-electric version of that series with the FGX & FSX models. The unique thin-line APX500III & traveler size APXT2 are also very popular in the acoustic-electric category. In smaller short-scale guitars, the JR1 & JR2 have been constant champs in the market place. And when it comes to acoustic guitar packages the GigMaker Standard and Deluxe models are both really solid movers.

MM: We introduced our new 600-series maple guitars at winter NAMM and are still filling backorders. The acceptance and demand for these instruments far exceeded all expectations. This indicates a healthy upper-end marketplace. Our feature laden 214ce-Deluxe model is set to surpass the iconic 214ce in sales volume. That tells us the mid-level guitar buyer is willing to invest more for higher-end attributes. The Taylor 150e is now the best-selling 12-string model, electric or acoustic, in the industry (source MISalesTrak – dollar sales).

TB: We market three brands: Weber Fine Acoustic Instruments, Breedlove Stringed Instruments, and Bedell Guitars. All have unique designs and purposes. I love the opportunity to delight a variety of musicians with instruments that sound, feel and look according to the particular musicians preferences. We are experiencing enthusiasm from our new Weber resonator instruments, our Breedlove Oregon Myrtle/Myrtle Limited Edition, Bedell Wildfire at the higher price points and the Breedlove Pursuit Ebony and Breedlove Discovery Sunburst at more affordable price points.
 

Much has been made of the use of endangered tonewoods in the creation of guitars, with acoustics being perceived by many end-users as most reliant on traditionally favored materials to produce the best sounds. How do you see this issue affecting the design and manufacture of acoustics in the coming years? What is your company doing to address and respond to the challenges?

TB: We never use clear-cut trees. Never. All of the tonewood used in our brands was individually salvaged or harvested to limit the impact on the surrounding ecology. Our pledge with Bedell Guitars is “SEED TO SONG.” As much as possible we trace all of the tonewood in each Bedell back to the individual tree where it came from. We include a plant and animal certificate in every Bedell we ship including the biological name of all the tonewoods and their country of harvest. This chain of custody enables U.S. Customs and other regulating agencies to know the exact content in our instruments and that they abide by all CITES and other regulations.

We have launched a new collection of incredibly bold sounding guitars in our Home Grown Collection. The three series, Bedell Earthsong, Bedell Blackbird Vegan, and Bedell Wildfire are crafted from 100 percent woods that grew in America. They have zero impact on our tropical rain forests, yet play, sound, and feel like the finest guitars you have ever experienced. 

MM: Wood sourcing and endangered tonewood usage is not a new subject at Taylor Guitars. Bob Taylor has been actively working in this area, leading the industry. As a company, Taylor takes its responsibility seriously in insuring the future of tonewood forestry. To do this, the company is an active participant in sourcing wood; from our work with GreenWood Global, a forestry cooperative in Copan, Honduras for mahogany, to our own work at Crelicam, our ebony mill in Cameroon, Taylor and our partner, Madinter Trade, are working to insure sustainable and ethical sourcing of tonewoods. In the US, we’re working with Pacific Rim Tonewoods to propagate maple, and hopefully one day have a small forest of figured maple for use in musical instruments.

AV: Yamaha has established strict timber procurement and usage guidelines to promote sustainable use of our wood resources. The health of our planet is of the utmost importance, so Yamaha researches ways to use alternative woods and develop new materials. Yamaha’s fundamental philosophy is aimed at preserving the global environment, and has enacted guidelines for the procurement and use of timber in products that allow us to contribute to a more harmonious relationship between society and nature. One of our top priorities is on procuring timber harvested from planted forests.

TW: Well, like most manufacturers, Takamine certainly rely on the classic wood combinations to create the intended traditional results, but Takamine always experiments with different woods to see what cool things can come from experimentation. Recently, they have been trying more wood from North America, such as myrtle for different tonal shades and increased sustainability. We make some great guitars from bubinga. We’ve been working with ovangkol as well, and we’re really pleased with the results. With the “sameness” of traditional tonewood combinations, it’s on the manufacturer to up their game in the production process… to look at every material; the glues, finish, saddles and nuts, and even tuning machines!

BC: Every manufacturer has a responsibility to source wood from only legitimate suppliers who, not only able to demonstrate all the correct documentation, but are truly working to manage the wood and trees.

An awareness of the importance of endangered wood also prompts makers to explore new ideas which can help to create a very vibrant offering in the market. We recently produced ten guitars with back and sides made from 5000 year old bog oak. The tree was reclaimed from the bog, dried and treated. There was a lot of interest and excitement around these guitars and that oak tree had never been chopped down.
 

What are your expectations for the coming months, both as it relates to the acoustic market, overall, as well as your own brand?

TW: Judging from the increased business and increased curiosity from the consumers, the acoustic market is alive and well! At Takamine, we anticipate good growth as consumers re-establish their love affair with our guitars. We enjoy such tremendous brand loyalty with our vast artist community, and we know that there are plenty of new musicians waiting to have that first experience with our guitars. We are working hard to win them over.

BP: We are looking forward to the next few months. With summer behind us our best time of year is just right around the corner. With high-quality and affordable price points, Lag guitars are a solid choice for just about any acoustic player

AV: We are anticipating another exciting and successful year, and gearing up for a strong holiday season. Then we kick off next year with a bang at Winter NAMM 2016, with lots of great surprises in store as well as celebrating our 50^th Anniversary of Guitar Innovation!

BC: As very new players in the US market everything for us is growth. We’re delighted to be working with Connolly Music and have every confidence that they will both enjoy and replicate the success that Faith Guitars has had in Europe and Asia. We can see no sign of the demand for acoustic guitars tailing off and therefore remain very confident.

TB: We anticipate a robust 3rd and 4th quarter. Music is the voice of our times… and these are very fascinating times!

MM: We are incredibly positive about the future of the acoustic guitar marketplace. While sales in the domestic market continue to rise, there are exceptional opportunities outside of North America. Western culture permeates popular music and as the entry-level player of today seeks their next instrument we’ll be there. Master designer Andy Powers will keep refining the tone of our guitars building on the superior playability we are known for. With our commitment to ebony from Cameroon, our new 600-series featuring North American maple, and exciting future wood sourcing endeavors, we have reinforced our position on responsible forestry to ensure great sounding guitars for generations to come.