MANUFACTURE CLOSURES and BUY OUT TRENDS

[Anonymous]

Just three years ago, MANTUA closed its doors after 75 years of business in the Model Railroad Industry. Since, Model Power with the purchased the MANTUA train line currently are still working to release the first of the new MANTUA CLASSIC locomotives. However, like many manufactures, the model railroad train industry has become a tough market. Although, MANTUA was not alone in dropping the train line due to profit margins.

We have seen RIVAROSSI purchased by an independent investor and set up an exclusive contract with WALTHERS. The all new tooling and superb improvement did not provide the investment return hoped for and the business dropped falling into bankrupcy. LIMA picked up the Line of Rivarossi and Arnold N Scale Trains, but with in its first year, failed as well and the debt forced their sale to HORNBY, UK picking up receivership of LIMA,RIVAROSSI, and ARNOLD Trains.

We also saw in 2004 the growth of Horizon Hobby and buy out of long time model railroad ATHEARN family. Yet too surprise a silent buy out of Model Die Cast from C. H. Menteer as Clarance decided to move into retirement after full ownship of MDC since 1939. However, the sell outs continue of business large and small of our model railroad hobby.

Just Tuesday, October 19, 2004, Stewart Hobbies, Inc., Chalfont, Pa., was purchased by Bowser Manufacturing Co., Inc., Montoursville, Pa. Just three years after MANTUA close their doors to Model Railroading. The sale has been announced jointly by the two companies. Although no explanation to why the 20-year-old business, founded in 1984 by Steve and Terry Stewart, producing HO scale locomotives and freight cars decided the sell of the made in the USA business.

Some recent releases by Stewart included a 70 Ton G39A Pennsylvania RR ore car and several new diesel locomotive models including an Alco C-630 and Baldwin S-12 and VO660 switchers.

Bowser announced that it plans to continue Stewart’s tradition for producing fine-quality models. Effective immediately, all orders for Stewart products will be handled by Bowser. Inquiries should be directed to Bowser Manufacturing, Inc., 1502 Jordan Avenue, P.O. Box 322, Montoursville, PA 17754 or visit its Web site at www.bowser-trains.com.

Business is Business. While many companies have been bought and sold, several new companies have developed changing the way we model railroad. The introduction of BROADWAY LIMITED, expanssion of Branchline Trains, Intermountain Railroad, Digitrax and growth to old businesses like Model Power, Lionel, Atlas and MDK K-Line. What will survive the years to come and what direction will the future trends lean towards? It all reverts back to what sells and what sits on the shelf. Model Railroaders demand more today than 50 years ago when we were satisified with just watching our trains loop around a track on a plywood board. Kit bashing items to get the model we wanted.

Computerization, DCC, Ready to Run, Pre-weathering each at greater cost with lower profit margins for manufactures. are just the high risk trends of being in business of MODEL RAILROAD items. Although, along the trend manufactures have been offering major discount to the open market through company WEB-SITES well below dealer cost. A good thing for the consumer, yet it also forcing your local hobby shop to reduce prices to be competitive to lower profit margins or close shop such as STEWART, MANTUA, MDC and Athearn. The Balance of highly detail items at affordable pricing and the fianancial ability to survive each trend to the next. The model railroader will survive always looking for something new and items old to place upon the collection shelf.

[Anonymous]

i got a rivarrossi HO scale hudson loco. it was so bad that i gave it away

[Anonymous]

QUOTE: Originally posted by austinsdad

Just three years ago, MANTUA closed its doors after 75 years of business in the Model Railroad Industry. Since, Model Power with the purchased the MANTUA train line currently are still working to release the first of the new MANTUA CLASSIC locomotives. However, like many manufactures, the model railroad train industry has become a tough market. Although, MANTUA was not alone in dropping the train line due to profit margins.

We have seen RIVAROSSI purchased by an independent investor and set up an exclusive contract with WALTHERS. The all new tooling and superb improvement did not provide the investment return hoped for and the business dropped falling into bankrupcy. LIMA picked up the Line of Rivarossi and Arnold N Scale Trains, but with in its first year, failed as well and the debt forced their sale to HORNBY, UK picking up receivership of LIMA,RIVAROSSI, and ARNOLD Trains.

We also saw in 2004 the growth of Horizon Hobby and buy out of long time model railroad ATHEARN family. Yet too surprise a silent buy out of Model Die Cast from C. H. Menteer as Clarance decided to move into retirement after full ownship of MDC since 1939. However, the sell outs continue of business large and small of our model railroad hobby.

Just Tuesday, October 19, 2004, Stewart Hobbies, Inc., Chalfont, Pa., was purchased by Bowser Manufacturing Co., Inc., Montoursville, Pa. Just three years after MANTUA close their doors to Model Railroading. The sale has been announced jointly by the two companies. Although no explanation to why the 20-year-old business, founded in 1984 by Steve and Terry Stewart, producing HO scale locomotives and freight cars decided the sell of the made in the USA business.

Some recent releases by Stewart included a 70 Ton G39A Pennsylvania RR ore car and several new diesel locomotive models including an Alco C-630 and Baldwin S-12 and VO660 switchers.

Bowser announced that it plans to continue Stewart’s tradition for producing fine-quality models. Effective immediately, all orders for Stewart products will be handled by Bowser. Inquiries should be directed to Bowser Manufacturing, Inc., 1502 Jordan Avenue, P.O. Box 322, Montoursville, PA 17754 or visit its Web site at www.bowser-trains.com.

Business is Business. While many companies have been bought and sold, several new companies have developed changing the way we model railroad. The introduction of BROADWAY LIMITED, expanssion of Branchline Trains, Intermountain Railroad, Digitrax and growth to old businesses like Model Power, Lionel, Atlas and MDK K-Line. What will survive the years to come and what direction will the future trends lean towards? It all reverts back to what sells and what sits on the shelf. Model Railroaders demand more today than 50 years ago when we were satisified with just watching our trains loop around a track on a plywood board. Kit bashing items to get the model we wanted.

Computerization, DCC, Ready to Run, Pre-weathering each at greater cost with lower profit margins for manufactures. are just the high risk trends of being in business of MODEL RAILROAD items. Although, along the trend manufactures have been offering major discount to the open market through company WEB-SITES well below dealer cost. A good thing for the consumer, yet it also forcing your local hobby shop to reduce prices to be competitive to lower profit margins or close shop such as STEWART, MANTUA, MDC and Athearn. The Balance of highly detail items at affordable pricing and the fianancial ability to survive each trend to the next. The model railroader will survive always looking for something new and items old to place upon the collection shelf.

Good post and in the case of Stewart, it is fairly well known that family past health and loss of family has entered into this sale of Stewart. I hope he is well and the family loss and distractions will heal. I believe he made fine products and his line will continue, thanks to his foresight into selling it and allowing the line to continue.

Lionel HO line is a different case that was caused by poor quality and the MTH lawsuit which resulted in a judgment, will be decided by appeal and it may never be paid or it might be reduced. However, they decided to bomb the market for their dealers who have the Challengers and Veranda's on their shelves. We as modelers really made out on this sale, but some of the dealers are hurt. I did not purchase the Challenger as I have one and consider it too basic, but the sound is worth the price. I talked to one of these great shops that has eight Challengers and five Veranda's on the shelf and he is stuck with the old price that he paid for them.. He did say something about eating them.

Athearn and MDC are the victims of greed and how the business world runs. We can't do anything about that, and many of the dealers are going to hurt from this also as the bread and butter inexpensive items are going away.

I do feel sorry for the new kids and new modelers getting into the market as the price will stop them. If the NMRA or any of the Manufacturers could offer a price break to teens and new people starting up, I believe it would help build our hobby for the future. I do not purpose how to do this fairly, but it should be done.

Just a few thoughts
Thank you

[Anonymous]

The modeling companies are falling in with the Real RR Companies, mergers buyouts, it is sick. I miss the good ole companies- Mantua, Athearn, and Roundhouse. I know you can still find them, but it is hard in my area unless they are brought to shows. I was just looking for Roundhouse engines and found out Horizion Hobbies bought them out! I hope they dont discontinue their products like they did the ATHEARN BLUE BOX kits! Question what ever happened to Rail Power?

[BentnoseWillie]

Rail Power Products was purchased by Athearn a couple of years ago. Athearn's GP60M, GP60B and CF7 are all ex-RPP tooling, with more rumoured to be following.

[Anonymous]

We recently heard that Horizon Hobbies would introduce some of the Blue Box items as well keep all of the MDC steam era items. However, profit is what a business is about. I'm not sure if it is the greed of money, but profit to stay in business, to pay employees, taxes, overhead and to continue research for improving products is business. I believe if Donald Trump had leadership of most of the manufactures today, he too would drop most items that are not profitable. "IT"S BUSINESS". Nevertheless, affordability is important.

Note on Rivarossi:
Rivarossi introduce afordability of nice, maybe expressed best asbeautiful locomotives at very low prices for the blue collar collector who could not afford that superb HALLMARK Brass train that good folks like Bobbye Hall imported. However, true, the motoring had always been poor on the steam locomotives buring up, poor hauling ability, etc. Although, the 2001 newtooling and improvements have made great change. They are much stronger, quality motoring and still beautiful but more costly.
The PAST and Future
I was raised with 0-scale LIONEL and MARX trains. Today, anyone under 40 can hardly afford the hobby. If we review "The WORLD'S GREATEST HOBBY", http://www.greatesthobby.com/ part of the three step five year marketing strategy is to introduce the hobby back to the market through males between the age of 45-65 years old. Hopefully, many of these men will be fathers who will be sharing the hobby with their off spring in this almost all male hobby.

THE BIG PICTURE
Production cost and sales are important. However, the answer to affordability is not through LACK of QUALITY that we often see on the low end Model Power, Life Like or BACHMANN sets which in the long run turn interest towards something else if your first experience is a train set which only operates for 15 to 30 hoursof actual operating use. In turn, leaving one with a bad experience of model railroad. However, IHC is one company who continues to make a very affordable train set using imported MEHANO products under the IHC trade name. Please keep in mind that Model Power, Life like and BACHMANN also make some very nice items too. Even Athearn dropped the earlier hard wire pick ups to a cheap but easy to install metal pick up across the motor and wheel brackets.

Like most of the Die Hard Model Railroaders across the world, we will miss some of the wonderful products we have come to know and friends like The Stewart Family, Athearn Family, and CLARENCE of MDC enjoying retirement in NEVADA. Thou we will always appreciate the many new guys on the block starting out in basements, garages or the family room like KMP models, Rustic Rails, Oregon Rail Supplies, Model Tech Studios and so many more. SUCCESS or FAILURE.....it is still just as exciting as the day that the old Die Cast Steam Locomotive whistled its way around the track smoking away with that loud rumbling open frame motor. Railroading should always continue to be fun. Whethered introduced through Harry Potter Set, Thomas the Train or Radio Flyer. But the rivets better be right on the high cost items where plastic locomotives cost more than the down payment on a new automobile.