How continual improvement has delivered better product value: evolving production techniques have enabled GHS to hold the line on string pricing for decades.

In 1972 GHS introduced its line of Boomer electric guitar strings to instantaneous acclaim. The strings were a hit from day one, and sales have increased every year since. Remarkably, in the ensuing 35 years the selling price has barely budged. To put this in perspective, consider that in the same time frame increasing costs have relentlessly pushed the price of most other staples ever higher. The consumer price index surged by 500%, average household income has increased 620%, and, most significantly, the price of copper, bronze, and steel, key components of guitar strings, increased by over 700%. Unlike scores of electronic products that have benefited from leaps in technology, today's GHS Boomers are pretty much indistinguishable from the original versions; they're still made from a combination of tin-plated nickel core wire and nickel-plated steel wrap wire, and they're still produced in the same factory in Battle Creek, Michigan, by many of the same employees.

How then to explain GHS's ability to hold the line on pricing in the face of ever-rising costs?

Russ McFee, GHS president, ponders the question in his Spartan office, steps away from the string-winding operations, and jokes, "I guess we keep our overhead low." When pressed, he turns serious, and his training as a mechanical engineer becomes apparent. "A very competitive market has forced a continuous evolution on the factory floor," he states. "There hasn't been any single breakthrough that has changed things overnight; rather, it's been a steady string of incremental improvements." From one year to the next, the refinements have been almost imperceptible. Over a two-decade time period, however, the cumulative effect has been to enable GHS factory employees to increase their output by a factor of five.

A hands-on manager, McFee has been personally involved in the design of most of the automated manufacturing equipment in the plant, and his familiarity with it shows as he strolls through the plant. Pointing to a bank of automated ball-ending machines that twist the core wire around the brass ball that will hold the string in the bridge, he says, "When I started here, this was a manual process, and we had to run two shifts to keep up. Now one or two employees can ball-end enough strings to supply the plant in a single shift." Turning to the winding machinery nearby, he says that when they were driven by belts and pulleys, they could run at a top speed of 20,000 rpm. Today, computer-synchronized servo motors spin the core wire at close to 35,000 rpm, significantly trimming the time it takes to wrap a string. Further enhancing the process, a computer-controlled arm of the machine continually monitors the speed of the core wire and instantaneously makes slight adjustments in tension, ensuring an absolutely consistent wrap on every string.

Greater output per employee on the factory floor has been the most obvious benefit of the automation drive. Less apparent, but equally significant, have been the improvements in quality and consistency. Computer-controlled machinery malfunctions less frequently, and tolerances are more precise, leading to a virtually non-existent rejection rate at the final quality control points. "We test all incoming metals for tensile strength, hardness, and color, and we also regularly test batches of strings," says McFee. "The rejection rate on incoming materials is probably higher than the rejection rate for finished strings." These improvements in manufacturing consistency, when spread out over output of millions of string sets annually, help explain why strings are a better value today than at anytime in history.

For all the progress that has been made on the factory floor, McFee still sees considerable room for further improvement. Several current projects to further streamline and automate the production process will yield additional efficiency gains. "I anticipate that by the time that we get our newest machines up and running, we can get our labor down to less than 15% of our costs, which would enable us to hold our own against anyone who tries to set up string manufacturing in China," he adds.

Having worked as an engineer on aerospace components and oil drilling equipment, McFee is at home using a micrometer and discussing tensile strength. However, he also recognizes that there is an art to making strings and that at some point you have to stop trying to measure and rely instead on the human ear and touch. Since GHS was founded in 1964, the workforce has had a high concentration of guitarists who serve as a "non-scientific" but highly effective quality-control function. "Sometimes they feel something that isn't right," says McFee. "We can't always figure out the problem, but when you listen, you know they're right."

Like other major string manufacturers, GHS has a stable of high-profile endorsing artists, ranging from heavy metal stars like Zakk Wylde and Dave Mustaine to Flea of the Red Hot Chili Peppers and Warren Haynes, currently playing with the Allman Brothers. These endorsements build product credibility, particularly with entry-level string buyers. McFee says, however, that the artist's role in guiding product development is equally important. "A player like Eric Johnson has such incredible ears, you have to pay attention to him when he critiques a product idea. Laurence Juber [acoustic virtuoso who performed with Paul McCartney and Wings] helped us develop a unique set of acoustic strings that use a brass-plated core wire and are cryogenically treated. He swears by them, and everyone here is convinced that they are the best acoustic strings on the market."

GHS was founded in 1964 by O.B. and Mae Holcomb and their friends, the Goulds and the Solkos, hence the name GHS. A one-time employee of V.C. Squier, a string maker that had been acquired by Fender, Holcomb correctly reasoned that he could build a viable business by exploiting the market niches that Squier, as part of a larger organization, was failing to address. For most of the past 43 years this strategy of focusing exclusively on strings has served the company well. In 2001 McFee rewrote the company's playbook, acquiring Rocktron, a manufacturer of digital effects, guitar amplifiers, and MIDI controllers.

At first glance, staple accessories like strings and hi-tech digital electronics, which evolve at a relentless pace, seem like disparate products. However, McFee makes a compelling case for why the two product lines are a good fit. "The GHS consumer and the Rocktron consumer are often the same person. We also rely on pretty much the same distribution network around the world. From a marketing standpoint, there's a lot of crossover between the two product lines." He continues, "We recognize that there are differences in the products, but what we acquired with Rocktron was a terrific engineering group, so we feel that we are well positioned going forward."

The evolution of Rocktron follows the tried and true "necessity is the mother of invention" story line. In 1983 Bob Waller and a few partners came up with what they dubbed "HUSH," a proprietary noise-reduction system for guitar. They had been playing extensively on the Hollywood Club circuit and were looking for ways to notch up the quality of their guitar sound. Other bands who heard them were immediately impressed with the crystal-clear guitar sound and began asking to buy their rack unit. Before long HUSH was in production, and Rocktron was a fledgling business. In the following decade the company racked up impressive sales growth, even landing on the cover of Inc. magazine by creating a string of innovative guitar effects. The groundbreaking Intellifex, launched in 1992, was the first 24-bit effects processor. The Pro Gap preamp, which included presets created by Steve Lukather and Allan Holdsworth, made its debut the same year.

Rocktron's original focus was on developing high-end gear for the most discriminating performers. This helps explain why the family of Rocktron users includes Dave Mustaine, Brian May, George Lynch, Prince, Neil Schon, Slash, Steve Stevens, Eddie Van Halen, John Petrucci, Viv Campbell, Steve Vai, Gary Moore, and Gary Hoey. The list of bands that have used Rocktron products include Disturbed, Lamb of God, Judas Priest, Iron Maiden, Papa Roach, Black Sabbath, Queen, Taproot, Pearl Jam, U2, Bon Jovi, Red Hot Chili Peppers, Alice in Chains, Nine Inch Nails, and the Deftones. More recently, however, the company has turned its efforts towards developing products for the more price-sensitive markets.

Building on the success of HUSH, in 1992 Rocktron introduced the first 24-bit DSP effects processor with the Intellifex. This was followed by the first preamps with on-board speaker simulation, the first DSP processor based on analog stomp box sounds, the first digital effects processors with no annoying "drop-outs," and the first digital noise reduction.

With a line that includes 20 analog stomp boxes and amplifiers at competitive price points, Rocktron is now squarely positioned in all the high-volume segments of the guitar market. Although the company has moved "down market," Waller says that the obsessive focus on tone remains unchanged. "Everyone of our digital effects is built around the highest-quality Motorola DSP chips," he says. "It gives us a broader sonic palette to work with, and it provides better all-around audio quality. I can talk about this stuff all day, but when you plug it in and play it, that's where you really hear the difference."

The effects modules in Rocktron amps, stomp boxes, and rack units all incorporate sophisticated digital algorithms to produce searing distortion, bell-like country tones, and every other effect imaginable; however, don't refer to it as modeling. "We're the anti-modeling company," says Waller. "Modeling is all about trying to recreate the sound of some old amp or effect. We think it's ultimately a very limiting approach. We try to create original sounds that are great in their own right. Most kids aren't plugging into their dad's old amp. They're looking for sounds of their own. That's where we come in. We're even stressing this message in an ad campaign that says, 'These aren't your dad's amp models.'"

The Rocktron product line is one of the broadest in the industry, including rack-mounted effects, stomp boxes, amplifiers, and MIDI controllers. One of the company's best-selling products is the Banshee, an updated talk-box effect that sells in the thousands each month. At NAMM, the company will further expand its line with the introduction of the Utopia, its first multi-effects floor processor. Rocktron's noted tone quality will be combined with a user-friendly interface and a competitive price, and Waller anticipates strong sales in the coming year. "One of the great things about this business is the fact that guitarists' idea of the ultimate in tone quality changes every six months, so they're constantly searching for something new. With Utopia we're giving them something new. We're also delivering a product that's so deep and versatile that it will take a long time before anyone can exhaust all its potential."

In an era that has celebrated creative financing, "new management techniques," and fast-paced acquisitions, McFee attributes much of GHS's ongoing success to a decidedly old-fashioned management style that revolves around quaint notions like rigorous expense control, a heavy investment in marketing worldwide, and, perhaps most importantly, an appreciation of the irreplaceable value of skilled people.

Aside from the periodic retirements, turnover at the company has been virtually non-existent ever since. What's the value of having veteran string makers at every stage of the production process? Russ McFee has a ready explanation. "Twisting the core wire around the ball end is one of those seemingly simple processes, but it's a lot more complicated than it looks, and if it's not done right, your strings will break all the time," he says. "At a trade show recently, one of our guys picked up guitars equipped with Chinese strings. Each time he played a chord on one, a string broke. And this happened on three guitars in a row. Having people in your factory who understand these things--that's what it takes to consistently build a quality product."

As attorney to O.B. Holcomb, Russ's father, Bob McFee, drafted the original incorporation papers for GHS in 1964. He later invested in the business and in 1976 acquired a controlling interest and took over management. At their first meeting, Bob McFee remembers asking Holcomb, "Guitar strings? Are you sure you'll be able to make enough making them to pay for your groceries?" Forty-two years later, it's something of an understatement to say that GHS has done a lot more than foot a weekly grocery bill. It's satisfied players around the world with a quality product. By holding the line of pricing, it's also made music more accessible. Not a bad track record.