Delta, what Happened

[Myk Rian]

Those old Delta tools (I put the Powermatic in the same ball park) are hard to beat.

That's a fac, Jac.

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[Henry Kramer]

That's a fac, Jac.

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It's a little hard to tell from the pic but it looks like a 37-315 Myk?

[Mark Blatter]

Companies exist to drive benefits for their shareholders (individuals, mutual funds, pension funds, etc). They do not exist for the benefit of consumers or workers. In this country we probably have hundreds of thousands of pages of laws and regulations around what you can and cannot do when running a company. Things like how much you have to have in the pension fund, etc. It's the duty of the CEO and the board of directors to maximize the profits of the company for the shareholders and that usually puts them at odds with the workers. In Arizona, all realtors have a legal obligation to maximize the seller's position. That's important because even if you have been working with a realtor who has shown you dozens of homes, their legal obligation is to the seller and not you their buyer. They never tell you that, but at least in AZ that's the law. The CEO is obligated to the shareholders and the board of directors (voted in by the shareholders) decide how the CEO is incentivized and paid. The board created a set of goals and rewards for the CEO to drive a set of goals. Sounds like the CEO met or exceeded the goals meaning he did exactly what the board wanted. The CEO above likely followed all the laws and worked to maximize what his personal pay package but that's what he was asked to do. When the public get all upset about CEO pay packages they are misdirecting their anger. The Board of Directors who are voted in by the shareholders of the company are responsible for setting goals and rewards. If the CEO drives to the goals and the results are bad then shame on the board.

I agree with you on this, but I think you are overlooking one important aspect. It is the responsibility of the CEO and B of D to maximize profits over the long run. Most US companies are managed for 1 - 2 quarters. At some point, Delta decided that making money now, at the expense of next year, was more important. CEOs mostly are in it for the big headlines (profits) for this quarter and year so they maximize their own bonus. By the time the chickens come home to roost, they have left for a bigger company and paycheck.

There are of course exceptions. Those are the companies I like to invest in, not the ones with CEOs on a bungee cord. There is a parallel in the buying community of course. Buying a table saw for $800 because it is 'good enough' but cursing it out every time you do a glue up and nothing fits. The most expensive tools I have ever bought are the cheap ones.

[Brad Patch]

Yep. The Delta we all knew and loved is no more. Parts for almost any legacy machine you have are scarce if not just plain unavailable:

Attachment 311344

Parts for my Delta machines are in the "just plain unavailable" category but, I was able to make some and fake others. One painful aspect of the current point in this sad history is that many sellers websites still show parts as available. Several times I was given hope only to have it dashed a couple weeks later when the order hit the warehouse and the cupboard was found to be bare.

The new Delta offers a few machines and is trying to carry the badge forward.

Be aware, as I know many are that, there are two very active web sites Vintagenachinery.org and owwm.com. They offer excellent advice, downloadable original manuals and forums to assist owners of vintage machinery (not just Delta) with problems and the ability to advertise for vintage parts you may need. The good news is that vintage Delta machinery was produced in such numbers that there is a high likelihood that parts are available on the noted web sites. Be aware that no discussion of Chinese or Taiwanese machinery is allowed.

[Joe Jensen]

I agree with you on this, but I think you are overlooking one important aspect. It is the responsibility of the CEO and B of D to maximize profits over the long run. Most US companies are managed for 1 - 2 quarters. At some point, Delta decided that making money now, at the expense of next year, was more important. CEOs mostly are in it for the big headlines (profits) for this quarter and year so they maximize their own bonus. By the time the chickens come home to roost, they have left for a bigger company and paycheck.

There are of course exceptions. Those are the companies I like to invest in, not the ones with CEOs on a bungee cord. There is a parallel in the buying community of course. Buying a table saw for $800 because it is 'good enough' but cursing it out every time you do a glue up and nothing fits. The most expensive tools I have ever bought are the cheap ones.

I was not overlooking it, I am blaming the board of directors. The board hires and fires CEOs. The board approved the CEO's strategy and the annual spending, R&D, and revenue plans. When the CEO guts the company he is being directed to do that by the board. CEOs are a very visible target but the board has more of the responsibility. JC Penny is an interesting example. The board hired a new CEo because he proposed to radically change their business. He was on track to what the board wanted but when the biggest investors started calling for the CEO to be fired the board fired the CEO. Shareholders own the company, the board is voted in by the shareholders, and the board approves the hiring and compensation of all corporate officers. Any stock option plans for the company are also approved by the board.