The following is the body of an email I just received. I think it is worth your attention: Industry Update
The hobby is in a manufacturing turmoil, due to a lack of production capacity now.
There is no question; you have seen the delays from virtually all manufacturers. Pick any manufacturer’s name and their products are delayed. Why you ask? There are several reasons.
The primary one is that the largest factory which produced models for a wide variety of manufacturers has shut its doors to those manufacturers. After it had been bought and sold several times, it was bought out by the Bachmann group and now produces models solely for Bachmann. This was a huge production facility, about 10 times the normal size of a typical Chinese factory. Or think of it as 10 factories operating under one name.
There is no other “big” factory, equivalent in size. As a result, many manufacturers have been forced to scramble and find another factory that can produce their models. However, there is no other “A” size factory, the next size is “B” size, 1/10th of the “A” size.
If you can imagine the size of China’s manufacturing sector, you might well say to yourself there should be lots of factories. There is, they produce lots of electronics, such as games, toys, appliances, telecommunications, etc. However, model trains are way down at the bottom of the list, as it is such a small market.
Believe it or not, there are very few companies capable of model train production. There are about three “B” size main factories and some smaller “C” size factories.
Then you have the issue of complexity. Our hobby products involve tool and di
I don’t agree that this is a can of worms. It’s needed!
I saw this on one of the Canadian model railroad Yahoo Forums and was going to post it here and on the Atlas Rescue Forum.
IMHO, that letter provides an excellent perspective from the side of the manufacturers. I’m one of those modelers that was a bit frustrated because certain models took a very long time to arrive on the market, or models that were being considered for production were cancelled. So this letter helps to explain things from “the other side of the desk”. It’s respectfully well thought out and stated.
Will it make us any happier? Of course not. I knew what was happening, but reading it from the manufacturer’s side helps me to appreciate their position more profoundly. So for me, it means that the liklihood of seeing another Athearn RTR run of FRISCO SD45s has diminished considerably. These are tough times and everyone is feeling the effects all the way around.
We can support US production, very simply by buying from Accurail, Bowser and other kit manufacturers! Learn that it isn’t hard at all to build model kits as opposed to buying RTR!
After many years, in which outsourcing a production to foreign (mainly Asian9 countries was the name of the game, we will have to learn, that “back-sourcing” is the way to stay in a market. I know of a number of companies in Germany, who already went this way, not only for reasons of quality, but availability. People here are not prepared to wait for months and years for what finally is a toy (even if we don´t like that name)!
Acoording to that letter, product won’t even be available for some period of time into the indefinite future. So, the real question is whether we will be paying anything at all.
If it were made in the U.S. at least it would be available even if we had to pay more.
And, I am not convinced that we would have to pay more.
The original reasons for shipping the means of production overseas are long gone now and forgotten.
There is a lot to be said in having a US made loco or car. The folks putting them together will know at least something about American (and Canadian) railroads, and be able to read the signage and recognize errors that have escaped the non English speaking folks.
And the other issue is the acquisition of after sale service and parts… For decades you could write Athearn in California and get pretty much whatever you needed - and they knew what you were talking about. In example, think of Rapido’s production of “Central Illinois” baggage cars…
Will American models cost more? Well sure they will. But if they produce a quality product, we will buy more, and with higher production, prices can and likely will fall.
I would much rather pay a premium for something made in the USA (North America) than for something made on another continent…
I too have run into the new order on my layout. I use a lot of grain cars, modeling Oklahoma and the Santa Fe in the late 1980’s. Two brands (cars) have dominated my purchasing, ExactRail and Intermountain. I purchased over a period of time the ExactRail covered hoppers I wanted, then recently started on Intermountain. I had some of their cars but wanted more. I was able to pick up a few here and there but in time I have cleaned out the best two sources I knew of for those cars and in emailing and calling around, cannot find any more of the IM cars I was buying execept for 4 which I grabbed immediately.
Now I can operate and get by with what I already have, but it disturbs me to see the source of the cars dried up. In an email to them, they told me no plans to offer another run of the cars. So another really fine car will become extinct, maybe for a short time, maybe never.
But I have been in the hobby long enough to have aquired a large inventory of what I wanted (needed) so the operating sessions will continue and life will be good, at least for now.
I for one would like to know from whom CMT recieved the purported E-Mail spelling out all of the doom and gloom.
It is very conusing after reading the OP’s post that Bachmann has sewed up for all intents and purpose all of model train production when CMT (the OP) released this news bulletin on their very own web site.
NEWSFLASH - July 10/12 CMT is changing from a dealer of many manufacturers into a supplier/manufacturer of its own products. This is an exciting time for us. As a result, we are making many changes to our operations. Due to the time commitment to do this, we are running behind in answering emails. Do not be alarmed.
Bachmann trains have generally been quite available, even if not directly “in stock” at a supplier and only “available”. Others have had the production troubles, promising then nto delivering or delivering years late. Perhaps now we know why. BAchamnn does tend to manufacture to put on the shelves.
The underdog is emerging ahead of the leaders of the pack and succeeding?.
I personally have no problems with my Bachmann locos {14 of them} and have yet to need to resort to the “great Bachmann Service Departement” I hear tell good things about. Bachamnn DOESN’t necesssarily have to “build the better mousetrap”, it just has to put all others out of business!
If you don’t like Bachmann, then you may be stuck. Maybe you shoud try a Bachmann?
The auto industry ate itself up time after time to a few manufacturers for US Automobiles. Then came the foreigners and now the US auto industry fights to hold on.
I will happily continue to aquire Bachmann DCC OnBoard locos as funds and wants/needs allow.
If you all think bringing model RRing manufacturing BACK TO THE USA would help, perhaps you can all get together and pool your money and build a bigger/better plant to manufacture all the locos you desire! Put your money where your mouth is, so to speak. If you don’t, you have no reason to complain about lateness, non-production, or “Bachmann taking over”.
“Try a Kia, Buy a Kia” was a slogan for the Kia dealers. Maybe “try a Bachmann, Buy a Bachmann” will work too!
