Manufacturing: Making Millions

Making student flutes at Gemeinhardt

Band recruitment programs greatly increased the size of bands and brought thousands of girls into the program, many of whom chose to play the flute.

After the Korean War ended and the fear of price controls eased in 1953, industry sales skyrocketed. Manufacturers provided financing to dealers in support of school band instrument rental programs, which increased the volume of sales. The effective marketing of new easy-play chord organs pushed the wholesale organ business to $100 million in 1960, representing thirty-five percent of total industry sales.

The volume also went to high on sales of electric guitars in response to rock and roll. Twenty new makers of amplifiers entered the market between 1964 and 1966. Demand for guitars outpaced supply, and foreign competition moved in from Japan.

Plant expansions and new factories sprouted in every branch of the industry. Capacity doubled and tripled. Profits followed. Corporate giants went on acquisition sprees, attracted by the huge profits of companies such as Chicago Musical Instruments (CMI) and others. Conglomerate CBS led the way when it bought Fender Musical Instruments in 1965 for $13 million in cash. In 1968, Magnavox bought The Selmer Company for an astonishing $53 million.