Model Railroading > Large Chinese Factory closes

In the interests of keeping their customers informed, Rapido Trains has sent out an email saying that a "A large Chinese supplier of model trains closed down today. This factory employed 3000 people and was a major producer for North American manufacturers."

No one likes to hear of massive widescale job losses but this will have ramifications for future orders. The price pressures caused by the demands of the customers no doubt has much to do with this. Margins may be better in other industries.

Bring back the kit?

Rick



Edited 1 time(s). Last edit at 01/13/12 11:57 by rschonfelder.

Kits? AMEN!!!!!

There's not enough info here to determine cause and effect. The manufacturer's may have known this without saying anything, the Factory may just be moving to other situations.

The Chinese Manufacturing Business plan is not stagnant, they have demonstrated they want to rule the market and then maximize their profits. I haven't seen them want to pack up and conclude an industry and market though. That's more of an American Business strategy. If there is market demand the market finds other manufacturers, at unknown location and cost though.

It is the Spring Holiday migration in China. Perhaps just temporary because almost everyone went home

Bite the Bullet!!
Make them in America!!
Mike

2720 Wrote:
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> Bite the Bullet!!
> Make them in America!!
> Mike

You willing to pay more then?

Because if it's made in North America, it will cost more.

PHall Wrote:
-------------------------------------------------------
> 2720 Wrote:
> --------------------------------------------------
> -----
> > Bite the Bullet!!
> > Make them in America!!
> > Mike
>
> You willing to pay more then?
>
> Because if it's made in North America, it will
> cost more.

Actually, Kadee's HO rolling stock releases are now less expensive than similar highly detailed cars from overseas.

Now.. as for starting up a new factory for this sort of thing in the US.. Be my guest.

Cheers,
Harry

I would pay more for the product, as long as it is putting americans back to work. And putting china out of business..

Jpetrick Wrote:
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> I would pay more for the product, as long as it is
> putting americans back to work. And putting china
> out of business..


Same here. I pay extra all the time for an American made product if I have the choice. And USUALLY, I don't have to replace said product nearly as often as the foreign crap.

Pump

maybe they're moving to the US for cheap labor

Out_Of_Service Wrote:
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> maybe they're moving to the US for cheap labor


We're in a race to the bottom with the world.

If Vietnam had reliable power then it might be the next China vis-a-vis manufacturing

John Gezelius
Tustin, CA

PHall Wrote:
-------------------------------------------------------
>
> You willing to pay more then?
>
> Because if it's made in North America, it will
> cost more.

Routinely opt for US-made products, even at a greater price.

Still using US-made tools purchased 40+ years ago.

Be Well,

Tim Colbert K3HX

K3HX Wrote:
-------------------------------------------------------
> Still using US-made tools purchased 40+ years
> ago.

Me too. But,

A) do the companies still exist? and

B) if they do, are they now "front offices" only, with their actual production taking place in China?

In other words, if I wanted to buy the same or better quality today, could I? For a number of my good-quality hand tools, the answer is no.

Ray



Edited 1 time(s). Last edit at 01/14/12 06:01 by Ray_Murphy.

NormSchultze Wrote:
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> It is the Spring Holiday migration in China.
> Perhaps just temporary because almost everyone
> went home

According to posts I've seen on other forums, it was not because of the Chinese New Year. The factory was locked permanently, and the Chinese authorities are searching for the owner.

Reportedly, the factory in question supposedly does large amounts of assembly work for Athearn, and even trying to retrieve product and molds inside that have not yet shipped may take some time.

As to speculation on where production may move to, should China start becoming too unreliable or cost prohibitive, perhaps Korea? They have been the long-time suppliers of brass locomotives, and it may be easier to make the step to high end plastic than setting up shop elsewhere.



Edited 2 time(s). Last edit at 01/14/12 08:43 by bioyans.

Ray_Murphy Wrote:
-------------------------------------------------------
> K3HX Wrote:
> --------------------------------------------------
> -----
> > Still using US-made tools purchased 40+ years
> > ago.
>
> Me too. But,
>
> A) do the companies still exist? and
>
> B) if they do, are they now "front offices" only,
> with their actual production taking place in
> China?

> In other words, if I wanted to buy the same or
> better quality today, could I? For a number of my
> good-quality hand tools, the answer is no.
>
> Ray

Ray,

Many of the companies are still in business, actually making
quality tools in the US.

An exception is the current production of Vise Grip locking pliers.
They got bought out and the new owners moved the line overseas. Per
a report in Popular Science, the quality suffered.

Perhaps the easiest to find US brand name for hand tools would be
Channellock.

Snap-On, Cornwell, Matco, Easco still manufacture much of their
line here.

Ridgid still cranks out pipe wrenches in Ohio.

Starrett and Brown & Sharpe still are the makers of choice for serious measuring devices.

Estwing is still making their hammers here.

Some of Sears' "Craftsman" line of hand tools are still US made.

Klein Tools are available at Home Depot.

Stanley, Vermont American, Great Neck, Xcelite, and General still make
hand tools here.

You may have to work a bit to find a retailer in your area. The effort
will be rewarded with tools that will do the job well and for a long time.
Try looking for a traditional (non-"big box") hardware store or a jobber
that caters to professionals.

Expect to pay 2 or 3 times (or more!) for a given tool than you would at Harbor Freight.

For example, you can find a pair of no-name, crudely finished, sloppy fit slip-joint
(also called "gas pump") pliers at your local big-box store for $3 or get a pair from
Channellock for $12.

You will be able to use the Channellocks all your life and leave them to your heirs. The
mystery maker junk will be relegated to the trash bin fairly soon.

You may find quality US made tools along with their imported wannabes in the
Enco catalog. (use-enco.com) Enco caters primarily to machinists and metalworkers.
Some of the Enco imports are really pretty good. I've some beautifully made tooling from
Enco made in Poland.

Be Well,

Tim Colbert K3HX

bioyans Wrote:
-------------------------------------------------------
> Reportedly, the factory in question supposedly
> does large amounts of assembly work for Athearn,
> and even trying to retrieve product and molds
> inside that have not yet shipped may take some
> time.

Hmmm, the fallout from this could be interesting.

toledopatch Wrote:
-------------------------------------------------------
> bioyans Wrote:
> --------------------------------------------------
> -----
> > Reportedly, the factory in question supposedly
> > does large amounts of assembly work for
> Athearn,
> > and even trying to retrieve product and molds
> > inside that have not yet shipped may take some
> > time.
>
> Hmmm, the fallout from this could be interesting.

Very interesting, indeed, especially if lots of it is Athearn stuff

Especially since the newer products offered by different companies have nearly identical packaging. Suggesting the same source with a few options of some sort.

We'll all be watching, or panic buying.

Well we don't need DD40AX Centennials or SP cabooses anyway.

Rick