I found out about this from gmpulllman in the Diner thread.
Bowser posted on their facebook page:
We have been informed that our foreign factory is closed. This will delay HO and N Ready To Run cars, trolleys, Cal Scale and our locomotives. We are looking for a new factory. All delivery dates are now TBA (To Be Announced). Thanks for all support you have given Bowser.
And Atlas, posted on their website on 7/27:
Atlas has received notification from one of our locomotive and rolling stock suppliers that they have closed their factory. (Please note Atlas track and accessories are NOT affected by this delay.) Atlas is currently working with our network of suppliers to transfer the projects to others for completion. This will cause a delay in some previously ordered products. We apologize for this delay, thank you for your continued support, and will update you with more information as it becomes available.
Evidently this has been discussed in other forums on the internet. One would think when one hovered over the news tab, on this national model railroad magazine site, that someone would have thought this would be a topic of interest for their subscribes.
We don’t know if it’s political, only coincidental. Shinohara closed before the tariffs. Do we know if everyone uses the same factory, Rapido, Bachman Intermountain and all the rest?
Average factory wage in China is $850/mo, that works out to less than 5.50 an hour, assuming they only work 40/week. I don’t see a move to the US happening.
Average factory wage. Do you think train assembly is more or less skilled than average? In some sense, I could see it being more skilled with the tedious nature of the parts and paint being applied these days.
One article I read was the factory closure was collateral damage from the current environmental rampage China is on to clean up their situation and to meet global agreements.
Funny this thread appears. A few weeks ago, MB Klein told me that their supplier for turnouts is delaying shipment. Perhaps the two issues are related.
Pls avoid the political discussion to avoid this thread getting blocked.
I wonder if Jason/Rapido could see this as an oppourtunity to pick up some of the manufacturing slack. This is done in industry all the time with a company manufacturing parts/products for a competitor.
Jason certainly has the knowledge as far as the MRR industry goes and if he could manage plant expansion without incurring a lot of cost in the process, he could do well.
The figure I quotes was from a google search for the average wage for an Apple phone factory worker. They assemble very small parts into an Iphone or MAC or Ipad.
I saw the same Rapido video. It may not require a high level of education, but it does require craftsman-like dexterity. David Popp and I wouldn’t make it one day, gluing grab irons on HO boxcars in China.
Well, technically I think political editorializing is what should be avoided.
I’m sure politics here and in China are at least partially driving the closure, I at least hope so. If not for politics, then its the market that’s driving it.
I’m hopeful that we can get to some idea about what the possible impact of the politics has on the situation, how it will be resolved and when, etc. without commenting on the merits of the politics themselves.
I’m inclined to think that politics have nothing to do with the model train factory closing in China. I read where the name of the factory was something like ABBA (not the music group, I hope), and the reason for the closing was the serious illness of the owner. Other factory delays have existed long before this closing came up. They seem to be a way of life.
So far, it has been announced by Atlas, Intermountain, Fox Valley Models and Bowser that they are affected. There are others, but I will let them announce it themselves.
Those not affected are Athearn, Walthers, Scale Trains, Bachmann and Rapido. Jason from Rapido has already posted that he apparently is willing to help where he can.
I don’t see that China not buying soybeans begins to be on a par with not selling model trains to the US. It they shut down the Iphone and HP, and Apple, Dell computer factories, that would be a statement.
At any rate we aren’t going to know that, unless someone writes an news story to that effect. News isn’t what it used to be, so we still won’t know.
Now that makes sense. I watch CNBC World and they have reports from China and the air there and in Hong Kong is filthy.
Ok. So some of the factors that made China attractive from a manufacturing standpoint might begin to wane. Hopefully any plant that meets the current regulations in China is new and efficient and can hold prices down.
The Chinese government has taken a rather vigorous stand on environmental issues in the past two years and I am not at all surprized by the closure of a manufacturing resource. It won´t be the last one.
I visited China in 2008 and was shocked by the amount of pollution. The air was almost too thick to breathe and I developed respiratory problems which made me leave ahead of schedule.
That´s wishful thinking, but I doubt that this will be the case. China is finally “growing up” to western standards, both in wages and environmental protection issues. The goldrush days are over and there are European manufacturers who already have transfered their production back to Europe.
My cousin is one of the top dogs at one of the worlds major pharmaceutical companies. A lot of their products have been manufactured in China for years, worth billions to the Chinese economy. China stood to lose this business due to not meeting global environmental agreements. The writing was/is on the wall. Clean up or your customers will clear out.
This info has been discussed in financial publications since the Paris accord was signed. Very significant to those that have retirement or other portfolios.
Maybe some financial magazines along with Model Railroader should be put in the reading room.[(-D]
After reading posts on several forums concerning this situation, the cause appears to be stricter environmental standards being enforced by the China’s government on factories and not due to tarriffs, or trade wars. China has horrible problems with pollution and their people are beginning to have all types of health issues.
This situation has affected several companies as noted and will defintely impact the hobby for the coming years. I honestly rather have limited items available that are produced in facilities safe for the workers and areas surrounding the factory. Let’s face it, we love to proclaim that we all support fair wages and working conditions until it impacts something we want at a cheap price. The US had some factories with horrible conditions a little over 100 years ago such as the Triangle Shirt Factory where hundreds died in a fire. China is finally trying to protect their people and environment.
Lets just enjoy what we have and be patient waiting for new items.