Atlas Flextrack

I totally agree with you. I started my first HO scale layout in 2003, and your recall on pricing is correct.

At the risk getting into another Made in China versus Made in USA debate, the whole idea behind overseas manufacturing was cost. If that is still true, I would hate to hear what it would cost to produce flextrack in the U.S.

Rich

Hi Guys,

Boy the price does keep going up. The new run of Atlas Flex code 83 has an MSRP on the Atlas site of $6.75 per piece. So I think the cost advantage is starting to disappear BUT, but the model rail road manufacturing community is in a pickle. Since they contracted all their manufacturing overseas (for the most part, I do realize that there are still some stuff made in the USA) the capability is gone. If Atlas decided today “let’s make everything in North America”, where would they do that? Who could make Atlas products for them? I doubt it would make sense for Atlas to start their own manufacturing line based on return of investment. That’s why most of the companies contract and are not like Bachman with their own factory.

Having said that, I think there is a new hope on the horizon. It’s 3-D printing. I have a titanium 3-d printed hip replacement, so why not at least a shell of a loco or a fright car. 3-D printing is still a bit costly for us home hobby guys (girls) but you know it will come down in price. But right no

yes your rite i remember getting model power flex track cheaper then that in the mid to late 90s & i would order a box of i think 300 pieces & split it with my ex father inlaw , wow it has gone up big time

When I built my layout twenty years ago, I was buying cases (100 pieces) of Atlas track for $100. Wish I would have known then what I know now, I could have made a way better return on my investment than ANY stocks have in the last twenty years !!!

Mark.

Mark, you are quite right.

Over the last ten year period, the S&P 500 increased at an average annual rate of 5.275%, while the MSRP on Atlas Code 83 flex track has increased at an average annual rate of 11.625%. So, the retail cost of Atlas flex track has increased at a rate more than double that of the stock market.

Incidentally, over that same 10-year period, the rate of inflation, as measured by the CPI, was a mere 2.75%. So, the retail cost of Atlas flex track has increased at a rate more than 4 times the rate of inflation.

Rich

I don’t know if just the CPI inflation rate (which is an average) is a good comparison. Track is made of plastic (petroleum product) and nickel-silver metal which is mostly copper.

In 2002 oil averaged $22.81/barrel vs. the $90-$95 it’s been running over the past year.

The price of copper has increased by a factor of 5.5 to 6 (from about $1400.00/metric ton to about $8000/metric ton if I am interpreting the graphs correctly).

So maybe the price increase isn’t so surprising. I am sure Atlas’s other business costs have risen as well. Mind you, I ain’t happy about it. I shoulda bought maybe a few thousand boxes. Gold, Schmold - the most secure investment for your 401K is Flex-track!!

George V.

It was intended more as a bench mark than a comparison.

Rich

I think the changing value of the U.S. dollar as compared to other world currencies play’s a much larger roll than people think. When I got back into the hobby several years ago the Canadian Dollar was roughly at $.65 U.S. Today it takes a $1.02 U.S. to buy one Canadian dollar.

A box of Walthers code 83 flextrack cost me $144.00 back then and now about $78.00. So the plummeting U.S. dollar lowers my MRR cost but raises the cost in the U.S.

The end result of a lower U.S. dollar will be a lower standard of living. However we are already seeing manufacturing returning to the U.S. as the lower dollar returns the U.S. to a competitive footing.

Economies ebb and flow and it is natural for them to do so. The tide is turning for the U.S. as it becomes more in line with the rest of the world (competitively) but change will happen.

Just my[2c]

Brent[C):-)]