I popped into my LHS yesterday to buy a few Atlas accessories and the guy at the shop said that they had run out. He said had actually just been on the phone with their Atlas rep who said they were having supply problems from their plant in China. The rep said that the costs for manufacturing in China were getting so high (due to some recent tariffs or something to that effect) and that it is no longer really economical to manufacture products overseas. There is a very good chance that this type of manufacturing could return to the U.S.
The guy at the LHS also said that the prices would probably not increase (if manufacturing returned to North America) because the tariffs/importing costs, supply & delay problems at the Chinese factories, and the cost of shipping were already driving up the prices of the overseas-produced items.
Hopefully, similar things will happen with Canada and the U.K. I mainly model British trains, so I have a concern here... Hornby and Bachmann are the two main suppliers of British 00 model trains and I think they're having similar issues with their China-made products. I do know of one British supplier though -- Dapol -- who mainly makes N-scale British models as well as a few (but possibly on the rise) 00 models that is still based in the UK. I think their might be 1-2 other smaller British model companies (Ixion Model Railways Ltd?) that still manufacture in the UK?
Has anyone else run into similar issues at their LHS or heard similar things?
Thanks,
It will hardly affect me ...I've been running , and will continue to run the same 10 or 12 locos I've had for 15 years . I think only one is "newer" , about 5 years old . I'm just buying supplies like scratch build items .....wood , plaster , styrene , brass etc . The new stuff can be tempting but I just don't have the money for "fun stuff " like I used to .
T
I haven't heard anything, and will believe it when I see it. Keep in mind that Athearn several years ago simply cleaned out all its manufacturing facilities and moved to an office building in Long Beach -- they'd have to make major changes to bring back equipment, hire new people, and so forth. And a big reason some companies moved to China is that the US environmental requirements for painting are much more stringent than in China. Plus the unpredictability of US taxes and regs.
It's definitely true that the move to China has been hurting the hobby in the medium term, with things like Atlas track and Athearn RTR harder to get, with these being the bread and butter of many train stores, but "moving manufacturing back" is a little like trying to get the toothpaste back into the tube.
I doubt if "moving manufacturing back" will ever happen..It will be more like moving from China to Viet Nam or other like country.
Brakie Wrote:I doubt if "moving manufacturing back" will ever happen..It will be more like moving from China to Viet Nam or other like country.
Thanks for these comments. From what the guy at my LHS said, it's the new tariffs that are now being imposed on goods coming into the country that are the main problem, so moving the manufacturing from China to elsewhere would not solve that problem. And, while it might solve the factory issues, there would still be the transporting costs and problems. But the main issue seems to be the new tariffs or fees on goods coming into the country.
Mexico is probably the new China. The shipping costs would be nil, it will help to keep immigration down as it will be more jobs in their own country and currently there is no tarriffs with them (and most countries other than China as well).
Tyson Rayles Wrote:Mexico is probably the new China. The shipping costs would be nil, it will help to keep immigration down as it will be more jobs in their own country and currently there is no tarriffs with them (and most countries other than China as well).
That would make sense since Mexico is part of NAFTA..Of course Canada could become a candidatete as well since its part of NAFTA.
Brakie Wrote:Tyson Rayles Wrote:Mexico is probably the new China. The shipping costs would be nil, it will help to keep immigration down as it will be more jobs in their own country and currently there is no tarriffs with them (and most countries other than China as well).
That would make sense since Mexico is part of NAFTA..Of course Canada could become a candidatete as well since its part of NAFTA.
Sure, but I doubt that manufacturing would not be cheaper in Canada unless the value of our dollar goes down!
RobertInOntario Wrote:Brakie Wrote:I doubt if "moving manufacturing back" will ever happen..It will be more like moving from China to Viet Nam or other like country.
Thanks for these comments. From what the guy at my LHS said, it's the new tariffs that are now being imposed on goods coming into the country that are the main problem, so moving the manufacturing from China to elsewhere would not solve that problem. And, while it might solve the factory issues, there would still be the transporting costs and problems. But the main issue seems to be the new tariffs or fees on goods coming into the country.
Rob,There's just to much going against new manufacturing here in the U.S starting with EPA,OHSA,the "go green" movement and higher state and local taxes. :cry: All that before paying your employees a livable wage with benefits-gotta retain your quality workers and you won't do that paying minimum wage.
Larry,
Yes, I realize it's complicated and that there is a lot against having manufacturing move back to North America. This move may not happen or, if it does, might happen slowly. Maybe I should try to support companies such as Dapol more, especially if the manufacture more products in the scale that I model in.
RobertInOntario Wrote:Larry,
Yes, I realize it's complicated and that there is a lot against having manufacturing move back to North America. This move may not happen or, if it does, might happen slowly. Maybe I should try to support companies such as Dapol more, especially if the manufacture more products in the scale that I model in.
First I would support hobby manufacturers that return to manufacturing in the U.S.
We know KayDee manufacturers their products here and we know its not a impossible move..
Brakie Wrote:RobertInOntario Wrote:Larry,
Yes, I realize it's complicated and that there is a lot against having manufacturing move back to North America. This move may not happen or, if it does, might happen slowly. Maybe I should try to support companies such as Dapol more, especially if the manufacture more products in the scale that I model in.
First I would support hobby manufacturers that return to manufacturing in the U.S.
We know KayDee manufacturers their products here and we know its not a impossible move..
Yes, it seems that there are a few smaller ones that still manufacture here. I'd like to support them more as well.
Rob,
Bachmann should have no production problems since it is essentially a Chines company (owned by Kader ).The biggest problem with coming back to North America or moving production somewhere else once your equipment is in China it is considered Chinese property,and almost impossible to reclaim.
I've heard various explanations re this problem. I was in a different LHS last week and they said the problem was a supply & factory-'related problem -- not due to tariffs or anything like that.
I don't remember the specifics, but I think it was Bachmann who bought the largest of the (about) 3 factories in China producing mrr stuff. And they are not using the plant to build Atlas and other competitors goods. So everyone else is facing a lack of manufacturing time.