Can we increase dynamics?

It's very possible that the reason the JBL speaker blew out was due to lack of amplifier power which caused severe clipping distortion causing the woofer to distort.

In other words, the more dynamic range you have the more amplifier power you need... every time you increase volume just 3dB your amp has to double the power delivery to play without distortion or clipping. If it can't then you'll be blowing your speakers.

And as the dynamic range increases the average level decreases... so in order to maintain the same average level the volume will need to be raised... again necessitating more power.

I bet you thought this was going to be easy! Good Luck.

Plato, I don't listen very loud but it is important observation. I will be careful with expanded files. I will likely only experiment but can see some other applications for "Sound Forge", like removing noise from few old recordings. I learned something new today.

There are any number of hardware or software expanders available. The software ones are typically far more flexible. However, an expander can never truly undue the compression/limiting applied to modern recordings. You will be able to gain a few dBs in dynamic range, but it's unlikely that it will sound any more natural than before processing.

Onhwy61, Ngjockey also mentioned that compression is pretty complex. It explains why expanders are not that popular. TV concerts are the worst - so overcompressed that it becomes a joke. Perhaps it is intended for TV set with the smallest speaker. Even less than perfect decompression would be good but it would have to be SPidif-in SPdif-out (I use Toslink to DAC).

What type of files are you trying to improve the dynamics of? If you are dealing with "lossy" files such as MP3 what you may want to do is some form of "compressed music enhancer" to help replace the music info that was thrown out during encoding, not just increase the dynamics (although I will admit that most new pop recordings have next to no dynamic range).... BTW you do not need to worry about a CD's 96 db dynamic range because in real life a listening environment has around 70 db between the noise "floor" of your room and max volume level that most audio systems can produce.