Why did heath die?

[Bill Coleman AA4LR]

On 4/20/99 5:24 PM, Don at bjmcpher at USIT.NET wrote:

>I am wondering what actually caused heath to die.

Well, Heathkit is still around. There's a couple of guys on the list who
(still) work for Heathkit.

>I have only seen some
>broad brush references on the reflector, and not really any details of
>the downfall and demise of the company. I know there are people on the
>list that worked at the firm during its death.

The fundamental problem with the electronic kit industry is that the
nature of electronics evolved beyond them. From the earliest days until
the 60s, electronic devices were largely hand-wired in one form or
another. In the 60s, printed circuit boards were introduced, but there
was still a fair amount of hand assembly. Sometime in the 70s, the advent
of integrated circuit components, printed circuits and automated assembly
and soldering foretold the end of kit electronics.

By the early 80s, it was CHEAPER to preassemble a printed circuit board
on an automated line than package up the components of a kit. The main
draw of kitbuilding was to get solidly functional gear at a fraction of
the price of factory assembled. By the middle 80s, that economy of scale
was gone.

>I know that there are
>apparently succesfull kit companies that are selling all sorts of kits
>as we speak.

The electronic kit business is very small today. It consists of a
hobbyists seeking the educational experience of building, not reduced
prices. In some instances, it involved gear whose market volumes are
small enough not to warrant an automated assembly line.

> How did heath come to its death, and how did it manage to
>hang on to the educational line of products? Who were the main players
>in the company now and then , and, just what happened, and why?

Another factor was that Zenith bought out Heath, presumably for their
computer line (the H89 Z-80 machines). Zenith pretty well mis-managed the
company, which precipitated its withdrawl from the electronic kit
industry.



Bill Coleman, AA4LR, PP-ASEL        Mail: aa4lr at radio.org
Quote: "Not within a thousand years will man ever fly!"
            -- Wilbur Wright, 1901

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