Damon Mcknight
In 2010, Burton Snowboards announced that it would be ceasing its manufacturing operations in Vermont and moving production to Austria. The company's founder, Jake Burton Carpenter, had previously struck a deal with a ski factory in Austria, recognising that the best ski technology was coming out of the country. The city of Innsbruck, where Burton's European Headquarters are located, has since become a snowboard mecca, with people from all over the world coming together to work, study, and share their passion for the outdoors.
| Characteristics | Values |
|---|---|
| Reason for moving production to Austria | Jake Burton knew the best ski technology was coming out of Austria |
| Year of moving production to Austria | 2010 |
| Previous location of production | Vermont |
| Current locations of production | China, Austria |
| Headquarters | Innsbruck, Austria |
| Year of establishing European Division | 1985 |
| Founder | Jake Burton |
| Current CEO | Donna Carpenter |
| Market share in 2013 | 40 to 45% of the snowboarding market |
| Ethical concerns | Criticism for expanding into China despite allegations of human rights abuse, including genocide of the Uyghurs |
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What You'll Learn
Jake Burton's deal with Austrian ski factories
Jake Burton Carpenter founded Burton Snowboards in 1977, creating the first snowboard from his Vermont barn. Over the years, Burton played a pivotal role in growing snowboarding from a hobby to a world-class sport. In 1982, the Suicide Six Ski Area in Pomfret, Vermont, became the first mountain to permit snowboarders.
In the mid-1980s, snowboarding was practically non-existent in the Alps, so Jake and his wife Donna, along with a small team, set out to develop the sport in Europe. In 1985, Burton established the European Division of Burton Snowboards in Innsbruck, Austria. They chose Innsbruck due to its proximity to winter sports, mountains, a glacier, and good infrastructure, including an airport.
During a winter vacation in Austria, Jake Burton visited several ski factories, looking for a manufacturer that could produce snowboards with steel edges. After several rejections, he found Keil Ski, a manufacturer based in Uttendorf, near Salzburg. In true determined fashion, Jake showed up unannounced in the middle of the night, requiring the owner's daughter to be woken up to translate. Despite the unusual circumstances, a deal was struck at midnight, and a prototype of Burton's first modern snowboard was created soon after. The new board, called the 1985 Performer Elite, was a completely innovative product with a P-Tex base and metal edges.
Jake's connection with Keil Ski and Hermann Kapferer, who ran a forwarding company out of Innsbruck, proved instrumental in the development of Burton's first modern snowboard. This deal marked a significant step forward in Burton's journey to becoming one of the leading snowboard manufacturers in the world.
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The sport's development in Innsbruck
Innsbruck, a city in Austria, has become a "snowboard mecca" where people from all over the world come together to work, study, and share their passion for the outdoors. The city is home to an extensive network of hiking trails and sports complexes, including the popular outdoor swimming pool, Tivoli Innsbruck. In addition, Innsbruck has hosted several World Cup events and is set to host the Sport Austria Finals in 2024 and 2025.
Innsbruck's reputation as a sports city is closely tied to the establishment of the European Division of Burton Snowboards in 1985. Before this, in the mid-1980s, snowboarding was almost non-existent in the Alps, and the city was a traditional mountain town. However, when Burton settled in Innsbruck, it changed the face of the town, making it more young, dynamic, and trendsetting.
Burton's presence in Innsbruck acted as a catalyst, drawing events like the "Air & Style" competition and a wave of young companies and manufacturers to the city. The company's focus on instruction methods and beginner-specific equipment helped to grow the sport, and its sponsorship of professional riders and events, such as the creation of organic terrain parks, further contributed to the development of snowboarding in Innsbruck.
In 2010, Burton announced that it would cease manufacturing in Vermont and move production to Austria, which has likely further solidified Innsbruck's status as a hub for winter sports and outdoor recreation. Today, the city continues to work on sports development plans, aiming to maintain its reputation as a leading sports city.
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The company's expansion to China
Burton's expansion to China is part of a broader trend in the industry, where companies are leveraging the capabilities of Original Equipment Manufacturers (OEMs) to produce their snowboards. OEMs are separate entities that specialise in manufacturing products for other companies, allowing brands like Burton to focus on design, marketing, and sales. This model enables greater flexibility and cost efficiency, as brands can quickly shift production between different OEMs or countries.
While the decision to expand to China offers operational benefits, it has also sparked ethical concerns. Critics have questioned Burton's presence in China, particularly in light of allegations of human rights abuses in the region, including the genocide of the Uyghurs. Craig Smith, the head of the company's China subsidiary, defended their decision, stating that Burton did not want to "divorce" itself from the region by refusing to do business there.
Despite the ethical considerations, China has become an increasingly attractive manufacturing hub for snowboards. The country has developed a reputation for producing high-quality products, and its factories adhere to strict regulations regarding workers, wages, conditions, and environmental impacts. This shift towards China reflects a broader trend in the snowboard industry, with companies seeking to balance product quality, cost efficiency, and ethical considerations in their production strategies.
Burton's expansion to China represents a strategic decision to capitalise on the country's manufacturing capabilities and evolving market potential. By leveraging local expertise and resources, the company aims to maintain its position as a leading snowboard brand, catering to a diverse range of consumers worldwide.
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The ethics of manufacturing in China
The story of how Burton snowboards came to be manufactured in Austria is a fascinating one. Jake Burton, the founder of the company, and his wife Donna, played a pivotal role in the evolution of snowboards from their early, rudimentary form to the sophisticated modern tools we know today. During a winter vacation in Austria, Jake spent his time exploring ski factories in search of someone who could produce snowboards with steel edges. Eventually, he struck a deal with Keil Ski, a ski manufacturer based in Uttendorf, and the first modern Burton snowboard prototype was born. This pivotal moment in the company's history laid the foundation for its future success and expansion.
However, the company has since expanded its manufacturing operations beyond Austria. In 2010, Burton announced that it would cease manufacturing in Vermont and shift production to Austria. Subsequently, some of its snowboard production has also been relocated to China, a move that has sparked discussions about the ethics of manufacturing in the country.
One of the challenges in ensuring ethical manufacturing in China is the historical lack of strict regulations governing labour rights, intellectual property rights, and environmental and ecological concerns. Lower wages and less stringent compliance standards have contributed to concerns about ethical purchasing. Additionally, issues such as intellectual property theft, or the production of knock-offs and bootlegs, have further complicated the ethical landscape of manufacturing in China.
Despite these challenges, it is important to recognize that the situation is not uniform across the country. Shenzhen, for example, has higher-than-average incomes and was one of the first economic development sites established with less direct involvement from the Chinese government. Additionally, some companies are actively working to improve working conditions and ensure their Chinese employees are treated well. Les Lunes, a fashion label based in Paris and San Francisco, is one such example, challenging the notion that Chinese manufacturing equates to miserable working conditions.
When considering the ethics of manufacturing in China, it is essential to conduct thorough research and due diligence. Identifying certified and ethical manufacturers can be challenging, and language barriers can further complicate the process. Seeking assistance from a quality sourcing agent who understands the local landscape and has existing contacts can be beneficial. Ultimately, while challenges exist, it is possible to support ethical manufacturing in China, and companies are increasingly recognizing the importance of stepping up their corporate social responsibility in this regard.
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The role of Original Equipment Manufacturers (OEMs)
In the case of Burton Snowboards, their products are manufactured in various countries, including Austria, China, and previously, Vermont in the United States. The company's decision to move production to Austria in 2010 was influenced by Jake Burton's recognition of Austria as a leader in ski technology.
OEMs play a crucial role in the snowboard industry due to their flexibility and ability to cater to different quality standards. Some brands use multiple OEMs, employing one for high-quality boards and another for low-quality ones. This strategy allows brands to shift production quickly and adapt to market demands. However, it also means that brands may not be transparent about their OEM partners, leaving consumers unaware of the true origin of their snowboards.
OEM factories often operate on small margins, making them vulnerable to financial difficulties. This can result in frequent shifts in production, as brands may need to move between OEMs to secure their supply chain. For example, the Elan OEM factory in Austria, which was once one of the world's largest snowboard manufacturers, went bankrupt in 2013, causing several snowboard brands to seek new manufacturing partners.
In summary, the role of OEMs in the snowboard industry is multifaceted and dynamic. They enable brands to produce snowboards without owning factories, provide flexibility in manufacturing, and allow brands to adapt to market demands quickly. However, the use of OEMs can also lead to a lack of transparency about the true origin of snowboard products.
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Frequently asked questions
Jake Burton Carpenter knew that the best ski technology was coming out of Austria, so he made a deal with a ski factory there.
The factory is based in Uttendorf, near Salzburg.
In 2010, Burton announced that it would move its production from Vermont to Austria.
The factory is called Keil Ski.
Bataleon, Capita, and Nidecker are some other brands that have manufactured snowboards in Austria.
