Allen Organ Company Business Information, Profile, and... -
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Published on: 8/31/2008
Last Visited: 7/5/2009
With more than 20 diverse models to choose from and over 75,000 installations worldwide, Allen carries the banner of innovation into the 21st century.
Our dedication to producing exceptional instruments is matched only by our commitment to providing unsurpassed customer service for the long term.
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Allen Organ soon needed more space.
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Getting Allen Organ off the ground was not an easy task, however, and the company struggled from 1946 to the early 1950s.
During this time, Markowitz's cash flow was often not enough to cover his expenses.
He was forced to lay off workers, a task that nagged at his conscience.
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Few competitors offered such a service, opting instead to produce a line of organs that they sold 'off-the-shelf.' Allen Organ also built a line of inexpensive organs for churches with limited funds.
In the 1960s, the company's products gained national attention, as customers and investors began to recognize the name of Allen Organ.
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In 1966, Allen Organ established a subsidiary operation, Rocky Mount Instruments (RMI), in Rocky Mount, North Carolina.
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By 1970, Allen Organ had sold more than 30,000 organs, and their products were available on six continents.
Moreover, the company distinguished itself by building the largest electronic organ in the world for the Tenth Presbyterian Church in Philadelphia.
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Under the proposed contract, Rockwell would adapt the digital technology, manufacture the circuitry, and provide technical support, while Allen Organ, which would gain exclusive rights to the new digital organ technology, would fund the project and provide Rockwell with their technical expertise in the fields of music and musical instruments.
The partnership involved considerable financial risk to Allen Organ, requiring capital outlay of over $1.5 million, but the potential gains to be realized by the digital innovation were exciting for Markowitz and his team.
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Deutsch and Markowitz would lock horns several times over the various issues, and Allen Organ's financial commitment to the project deepened.
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Not wanting to commit further funds to the project, Markowitz refused, and the relationship between Rockwell and Allen Organ was further strained.
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Nevertheless, Allen Organ approved the prototype of the world's first digital organ in 1971, and that year Allen Organ began marketing its Allen Computer Organ.
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During this time, the computerized organ, which mimicked the sound of traditional pipe organs better than the founder's analog organ had, became increasingly popular, and Allen Organ began a program of vertical integration, making its own circuit boards.
The company also strove in the 1980s to automate its facilities, keeping up with new technologies that allowed for quicker production.
The production of circuit boards took on a life of its own, and in 1989, Allen Organ formed a subsidiary, Allen Integrated Assemblies(AIA), to oversee the sideline.
By the mid-1990s, AIA was producing about 150,000 circuit boards annually, slightly less than half of which were sold to outside companies.
The majority, however, were used in Allen organs and other musical instruments.
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Steven Markowitz had joined Allen Organ in 1975, after graduating from Penn State University, and had assumed the company's presidency in the 1980s.
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Under the younger Markowitz, Allen Organ continued to expand its size and scope.
Several acquisitions were made and subsidiaries organized, as the company focused on keeping product costs low by manufacturing parts in-house.
Among the new subsidiaries were Eastern Research, Inc., a manufacturer of digital components established in 1992, and Linear Switch Corporation, a manufacturer of matrix switches formed in 1993.
Moreover, the company became involved in the manufacture of audio speaker cabinets for home theater systems through subsidiary Legacy Audio Inc.
Nevertheless, the company continued to generate most of its sales from its digital organs, which had gained worldwide recognition.
By the late 1990s, Allen Organ was organized among four industry segments: musical instruments; electronic assemblies; data communications; and audio equipment.
While sales continued to increase, profits were somewhat hampered by the costs incurred in investing in sales, marketing, and product development, particularly for the company's diversified subsidiaries.
In February 2000, the company's stock soared to $82 per share, up 26 percent, on rumors that Allen Organ intended to jettison its Eastern Research data communications subsidiary.
In January 1999, several Allen Organs were used for major events associated with Pope John Paul II's visit to St. Louis, Missouri.
An Allen Organ was installed in the Trans World Dome for the principal mass.
A second Allen Organ was installed at the Kiel Center for the Youth Prayer Service.
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Related information about Allen Organ
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Allen introduced the world's first fact digital musical instrument in 1971.
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1961: Allen Organ goes public.
1966: Rocky Mount Instruments is acquired.