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MRR Industry Update - recommended read Locked

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Posted by Anonymous on Wednesday, July 25, 2012 7:38 PM

Oh come on, guys - we all knew this was bound to happen. It is an inflammatory topic, which drifted off into politics, and that´s a no no in here. I also got carried away and posted a more political statement, which was rightfully deleted, just like other answers,  in the attempt to save the thread. I still think it is an interesting topic, with many valuable answers, but I learned that you can´t discuss it without straying into politics.

Blaming our host or bashing the mods isn´t really helpful, either.  So let´s put the case to rest and move on.

 

 

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Posted by don7 on Wednesday, July 25, 2012 9:31 PM

As Bachmann has increased the quality of their product and is doing very well in North America, Bachmann is also doing very well in Europe and China (big surprise) Apparently model railroading is very big in China as their disposable income grows.

Bachmann needed the factory for themselves. Nothing strange about that.

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Posted by Lehigh Valley 2089 on Thursday, July 26, 2012 8:26 AM

maxman

 Lehigh Valley 2089:

Neither the subject nor the responses were - imho - out of line, and in fact were more productive than not.  (mobileman44)

 

 

I have to agree.  It was people just making points about how overseas production and economics are related...........

I hope that there are several of you out there who would agree with me, opinions are welcome.

 

I can't speak to the deleted posts by the manufacturers/importers as I don't totally remember them.  But there was one extensive post by an individual that I found extremely annoying.  I totally abhor any post that detours off into political, and sometimes off-topic, commentary.  If someone complained, and it wasn't me, I'm glad that particular post was deleted.

Well, if someone had a problem with it, I am okay with it being deleted. The rest of us just think they might have just jumped the gun a little bit. If your glad to see the one post gone, that's alright.

I didn't have an extensive post, but if it was mine you found annoying, I do apologize....... truely.

The Lehigh Valley Railroad, the Route of the Black Diamond Express, John Wilkes and Maple Leaf.

-Jake, modeling the Barclay, Towanda & Susquehanna.

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Posted by blownout cylinder on Thursday, July 26, 2012 8:30 AM

I, too, apologize if any of my previous posts were OT....Black Eye

Any argument carried far enough will end up in Semantics--Hartz's law of rhetoric Emerald. Leemer and Southern The route of the Sceptre Express Barry

I just started my blog site...more stuff to come...

http://modeltrainswithmusic.blogspot.ca/

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Posted by galaxy on Thursday, July 26, 2012 8:50 AM

don7

As Bachmann has increased the quality of their product and is doing very well in North America, Bachmann is also doing very well in Europe and China (big surprise) Apparently model railroading is very big in China as their disposable income grows.

Bachmann needed the factory for themselves. Nothing strange about that.

And if they bught it outright, they have every right to it and to make what they want for themselves or for others IF they choose to.

That is what happens in ALL industries...a player will buy out something/someone to better control or have a better handle on the goods available to the public. This is NOT new news.

Bachmann may have won the race, but not necessarily the battle if someone else muscles in on the MRRing territory, but it will take time for a new player {or an old one} to get into the picture again.

If we indeed look to India to be our next maufacturer of goods, other MRR companies MAY start to look there for prospects and "start over" forgetting CHina altogether...then we can all start to complain about "Made in India" !!!

Geeked

-G .

Just my thoughts, ideas, opinions and experiences. Others may vary.

 HO and N Scale.

After long and careful thought, they have convinced me. I have come to the conclusion that they are right. The aliens did it.

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Posted by dti406 on Thursday, July 26, 2012 9:25 AM

don7

As Bachmann has increased the quality of their product and is doing very well in North America, Bachmann is also doing very well in Europe and China (big surprise) Apparently model railroading is very big in China as their disposable income grows.

Bachmann needed the factory for themselves. Nothing strange about that.

Someone posted the website with the financial statements for Kader (Botchmann) on the old Atlas Forum.  In taking those financial statements apart I noted that Europe's sales were down at least 25% due to their ecomomy over there and in that segment of the market they lost money.

Also they do not account for warranty returns anywhere in their financials which have to be massive based on comments on all the forums about sending product back for repairs or replacement.

Rick J

Rule 1: This is my railroad.

Rule 2: I make the rules.

Rule 3: Illuminating discussion of prototype history, equipment and operating practices is always welcome, but in the event of visitor-perceived anacronisms, detail descrepancies or operating errors, consult RULE 1!

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Posted by Doughless on Thursday, July 26, 2012 11:27 AM
galaxy

 don7:

As Bachmann has increased the quality of their product and is doing very well in North America, Bachmann is also doing very well in Europe and China (big surprise) Apparently model railroading is very big in China as their disposable income grows.

Bachmann needed the factory for themselves. Nothing strange about that.

And if they bught it outright, they have every right to it and to make what they want for themselves or for others IF they choose to.

That is what happens in ALL industries...a player will buy out something/someone to better control or have a better handle on the goods available to the public. This is NOT new news.

Bachmann may have won the race, but not necessarily the battle if someone else muscles in on the MRRing territory, but it will take time for a new player {or an old one} to get into the picture again.

If we indeed look to India to be our next maufacturer of goods, other MRR companies MAY start to look there for prospects and "start over" forgetting CHina altogether...then we can all start to complain about "Made in India" !!!

Geeked

- Douglas

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Posted by betamax on Friday, July 27, 2012 4:42 AM

Kadar owns Bachmann, and they have for about 30 years.  Kadar recently bought Sanda Kan, which was badly managed by J P Morgan, and obviously the price was right.  Who knows what condition Sanda Kan was in when Kadar bought the company.

Model Railroading products are a specialized industry, even in China.  Most of their manufacturers are geared toward producing massive numbers of kettles, frying pans, iPods, laptops.  There is a specific set of skills needed to build model locomotives, and not to many companies possess those.

Even tooling is expensive, but you can save a lot of money doing that in China.  But it is a slow process to get it right, and tool steel is in high demand everywhere.  The best place to find that is China, even there it is in short supply. Since we are not making a simple tool to mould the body of an electric kettle, but a very precise, multi-part, and highly detailed tool for a locomotive, that increases the time and money needed to complete the project.

Since there has been a change in the MR manufacturing sector, there will be impacts as all this gets sorted out. You just can't throw up another factory and solve all the problems overnight. 

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Posted by CP5415 on Friday, July 27, 2012 5:29 AM

I'm thankful that there isn't anything being made by my preferred suppliers of model railroad loco's & rolling stock so I can now concentrate on the layout itself.

I have 80+ locos & 300+ cars to fit on a layout in a 11 X 17' room.

Plenty I have. Don't tell the wife I said that!

Thankfully, eBay, Kijiji & train shows are still a source of products for me.

Gordon

Brought to you by the letters C.P.R. as well as D&H!

 K1a - all the way

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Posted by mobilman44 on Friday, July 27, 2012 6:41 AM

Hi!

A couple posters indicated the manufacturing shortage doesn't really affect them, and I guess I fall into that category as well.   While I would love to see some ATSF and IC specific steam locos produced, my 1950s era layout is well stocked with locos and cars.  

Still, its always a good feeling when something new comes out that you just have to have.

ENJOY  !

 

Mobilman44

 

Living in southeast Texas, formerly modeling the "postwar" Santa Fe and Illinois Central 

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Posted by BRAKIE on Friday, July 27, 2012 7:13 AM

Rick: Someone posted the website with the financial statements for Kader (Botchmann) on the old Atlas Forum.  In taking those financial statements apart I noted that Europe's sales were down at least 25% due to their ecomomy over there and in that segment of the market they lost money.

----------------------

Call Bachmann "Botchmann" all you want but,they sure enough slap the big 3 in the face by marketing afforable models with DCC or DCC/Sound.

You know that slap had to sting.

All of a sudden Bachmann has my attention and that says a lot!!

Take their GP7 and Alco S4 and RS3 do some old fashion modeling and you will have a nice looking locomotive.

Larry

Conductor.

Summerset Ry.


"Stay Alert, Don't get hurt  Safety First!"

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Posted by RMax1 on Friday, July 27, 2012 7:36 AM

The last two are interesting thoughts. I also have plenty of loco's and rolling stock.  So there is very little need for anything new.  My concern right now is detail and replacement parts. 

This current industry problem may be a blessing for train shows and dealers of older stock.  The last shows there was plenty of inventory of mainstream older product.  While somethings may not be in the road you want.  There may still be something useful.  Prices of show goods may also rise. 

Another thing to think about is while there is downtime as manufactures get things figured out.  You could be installing dcc decoders in what you currently have, upgrading and working on scenery.  It's not the end of the world YET!

In the future the industry may need to go back to more generic product and modelers will need to model again.  I know we have had a thread on what is model railroading but buying a 100% detail loco is more collecting than anything.  Scenery may be your thing but it may be time to get other skills.

RMax

 

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Posted by BRAKIE on Friday, July 27, 2012 7:55 AM

There may still be something useful.  Prices of show goods may also rise. 

-------------------------

Agreed but,they must stay competitive with on line shops and each other.

Its hazardous for a dealer to jack  his prices up unless he enjoys unpacking and repacking the same models.

Larry

Conductor.

Summerset Ry.


"Stay Alert, Don't get hurt  Safety First!"

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Posted by pascaff* on Friday, July 27, 2012 9:57 AM

   I have to agree with something RMax said,

"Another thing to think about is while there is downtime as manufactures get things figured out.  You could be installing dcc decoders in what you currently have, upgrading and working on scenery."

   I have been out of the hobby for about 7 years. When I started un-packing my old Athearn BB loco's and looking at the price tags on the boxes, I realized I spent more than triple on up-grades, then they cost new. Can motors, new wheels, and early Digitrax decoders. I just recently bought a Tsunami sound decoder for one of my GP 9's Love it and now have several more installs to do. Sure I would love to get some new stuff, but I will be busy installing decoders, laying track, finishing some buildings I bought over 8 years ago, and doing scenery. Not to mention detailing loco's and rolling stock. So I can sure keep myself busy until I find something I can't live with out.

   Paul

Living in Fernley Nevada, about 30 miles east of Reno, also lived in Oregon and California, but born In Brooklyn NY and raised on Long Island NY

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Posted by andrechapelon on Friday, July 27, 2012 10:29 AM

hminky

Capitalism at work, the guys who own Bachmann suck everyone into their production facility.

Then tell the competitors to find somewhere else to make their competitive product.

Ahh, capitalism, Darwinism at it's best. Survival of the fittest.

Harold

The guys who own Bachmann make products for a worldwide market, not just North America. They own the Liliput, Aristo-Craft, Bachmann Branchlines (UK 00 scale), Graham Farish (UK N scale) and several other lines including Woodland Scenics.  http://www.bachmann.co.uk/avail.php. It's no wonder they bought the factory. Given the incredible variety of products they produce like this little gem, http://www.bachmann.co.uk/details.php?id=38&vis=2 , the prototype of which exists in working condition at the Bluebell Railway. I actually saw the prototype in service last month. Got pictures. Bachmann also just recently handed over a substantial donation to the Bluebell for the renovation of the Sheffield Park station. http://www.bachmann.co.uk/details.php?id=44&vis=2 . Bachmann actually supplies models of several of the buildings at Sheffield Park.

No other manufacturer that I know of caters to a considerable portion of the world's model railway enthusiasts the way Bachmann does. None. I can understand why they bought the factory. It wasn't to cut others out, but to make sure Bachmann had sufficient capacity to supply all the markets they're in. Ford doesn't make Chevies for GM, so why should Bachmann make Athearn products for Horizon? It's not Bachmann's fault that other manufacturers are so parochial as to supply products for only one market. Ford doesn't do that, nor GM nor Chrysler.. As a matter of fact, when I visited the UK last month, I drove a Ford, one of these: http://www.ford.co.uk/Cars/S-MAX with a turbocharged diesel engine. Nice car. Lots of room, plenty of power and cargo carrying capacity. There were 5 of us and all our luggage.

Andre

P.S. You can actually get a Ford Ranger in Russia:  http://www.ford.ru/Commercialvehicles/RangerEP2

Then again, Ford actually owns its own manufacturing plants.

 

 

It's really kind of hard to support your local hobby shop when the nearest hobby shop that's worth the name is a 150 mile roundtrip.
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Posted by sakel on Friday, July 27, 2012 10:31 AM

Wasn't this thread just locked? Last time I checked it was.

Samuel A. Kelly

I can draw pictures with my keyboard!

-------- ( It's a worm)

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