View Full Version : LMI also involved in investigation

Moore Bettah Ukuleles
10-09-2011, 01:15 PM
These articles are from the Press Democrat, LMI's local newspaper, published in the last couple of days.


10-09-2011, 03:36 PM
Time to start storing exotics in an off site undisclosed location. LMI probably doesn't even had insurance to fall back on. Hopefully they got Gibson's money before seizure. Gibson can handle to loss better than LMI I would guess.

getting a bit crazy.

Pete Howlett
10-10-2011, 02:33 AM
Well they got that all wrong - India has assiduously controlled it's exports of exotic woods. I don't know of anyone who has bought or received billets or boards of East Indian rosewood in the past 40 years. All wood coming out of that continent is so tightly and beauracratically managed by government officials that it would be near impossible for any reputable company to be duped into buying illegal wood. And why would they risk their livelihood knowly doing so? I have no compassion for the Gibson situation or PRS for that matter who had a shed load of BR siezed but LMII???? - it is almost as if anyone selling tonewoods is going to be branded guilty of smuggling.... Tough times for you guys in the US at the moment.

10-10-2011, 03:09 AM
Anyway I've started "Panic Buying" I just bought material for 2 doz soprano fretboards this morning :(

Pukulele Pete
10-10-2011, 03:12 AM
Anyway I've started "Panic Buying" I just bought material for 2 doz soprano fretboards this morning :(

Find a good place to hide them.

Michael Smith
10-10-2011, 04:33 AM
It seems all government agencies are now trying to make their budgets on fines and fees. My friend got popped for fixing his home without getting a building permit. His fine was $11,500 dollars. DEA seems to be playing the same game here in CA with the medical marijuana dispensaries. It's all about the money and a broke$$ government. If you look at these raids and seizures through that prism you will better understand what is going on.

10-10-2011, 05:38 AM
Find a good place to hide them.

I have a backhoe !!!!

10-10-2011, 05:40 AM
It doesn't make sense to me that Gibson was buying wood from LMI rather than directly from the exporter. Why include a middleman? Why does LMI have a warehouse in Gibson's hometown of Nashville when it is based in California? Smells fishy, especially in light of Gibson's misbehavior in the past.

10-10-2011, 06:32 AM
Third party consolidation and purchasing is a standard practice in large corporations. Among other things, it allows for the corporation to reduce the size of its purchasing department as well as purchasing agents don't need to know much about what they are buying. They're just told to bring in so much of item A and the expectation is that the vendor will provide them with the material to Gibson's specs. Also, the vendors are delivering products "Just in Time", so that the manufacturer isn't carrying the inventory and liability on their books. They will often stage it in the manufacturers location with employees who will stock carts to feed a line per shift. This is a result of manufacturing going to an assembly process versus a true "cradle to the grave" manufacturing process. In my day job, I deal with these types of businesses on a regular basis. It doesn't make much sense from an outsiders view but it can benefit the corporation in a number of ways, but it can be a detriment too. There are some politicized issues that go along with that purchasing process but that's another topic. It wouldn't surprise me if Gibson has an employee hand selecting their timber and then have LMI import it and handle getting it to the shop floor.

10-10-2011, 06:41 AM
Why does LMI have a warehouse in Gibson's hometown of Nashville when it is based in California?
It seems the warehouse is owned by "Red Arrow Delivery Service".

10-10-2011, 07:57 AM

10-10-2011, 08:08 AM
Thanks for the explanation, Andrew.

10-10-2011, 08:36 AM
I never thought this hobby would make me an international criminal.

Liam Ryan
10-10-2011, 11:30 AM
Andrew's nailed it. It's about risk management. LMI are an import company, who better to do the importing. Gibson can just worry about having employees who know how to build gutars.