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Thread: Major Chinese Factory Shutdown - 6 US Companies Affected?

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    Default Major Chinese Factory Shutdown - 6 US Companies Affected?

    Just saw this on Facebook -- someone claiming to have inside source -- so some of this is hearsay but then there is an Atlas notice about this...

    https://shop.atlasrr.com/b-atlas-rol...y-closure.aspx

    Anyway, not sure of net effect.

    I wonder if there is any risk of lost tooling like there used to be...
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    Bummer for Atlas. Seems like things were just getting back to normal after the previous Chinese factory kerfuffle

    -Mark
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    Please as i know this is coming . How about not posting up about bringing the manufacturing to the US or North America in general . I truly belive that Atlas and most others have considered this , and if they could do it and still make money at it .....they would have by now . Were not the smartest people in the room and have this unique thought that they never considered at some great lenght .

    Thanks

    Steve
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    Quote Originally Posted by aflica View Post
    Please as i know this is coming . How about not posting up about bringing the manufacturing to the US or North America in general . I truly belive that Atlas and most others have considered this , and if they could do it and still make money at it .....they would have by now . Were not the smartest people in the room and have this unique thought that they never considered at some great lenght .

    Thanks

    Steve
    Oh your tender sensibilities. Alas hasn't produced a locomotive or anything else in America in my 50 plus year lifetime but that doesn't mean they can't or shouldn't. I buy them regardless because it is what it is. However, if they were built in America, and it meant employing even a few more Americans versus Chinese, they would get my money exclusively.
    " You can do anything if you have enthusiasm. With it there is accomplishment, without it there are only alibis " - Henry Ford
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    Actually, Atlas did briefly manufacture some of their N scale freight cars in New Jersey in the late 60's and early 70's (prior to relocating all of their production to China).

    -Mark
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    the problem is finding workers....
    at the wages required
    for making the locos at a price me might be able to afford...

    victor
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    Quote Originally Posted by Power Stroke View Post
    However, if they were built in America, and it meant employing even a few more Americans versus Chinese, they would get my money exclusively.
    My business too.
    Paul Schmidt

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    Quote Originally Posted by victor miranda View Post
    the problem is finding workers....
    at the wages required
    for making the locos at a price me might be able to afford...
    The bottom line, $$$. IF Atlas were to produce their products here, the prices would probably skyrocket. They would have to be competitive with the American market. Not something I see happening any time soon. They'll more than likely weather the storm or go out of business. God forbid, any of the stockholders would take lower dividends.

    That's my $0.02 worth...
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    What's the old saying about how to make a small fortune in the model railroading business? Start with a large fortune and just give it some time?

    -Mark
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    Quote Originally Posted by Power Stroke View Post
    ... they would get my money exclusively.
    Quote Originally Posted by Paul Schmidt View Post
    My business too.
    So you only buy only MicroTrains and run it all on Micro Engineering track right now?
    Karl

    CEO of the Skally Line, an Eastern MN Shortline
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    My friend's motto is "Buy high, sell low!" Funny how it's always seemed to work for him with cars & guitars? LOL
    N-joy!
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    The big question is why did the Chinese Factory shut down?

    Also anyone have any insight on how tariffs will (or might) affect production of model trains from China?
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    Quote Originally Posted by jpwisc View Post
    So you only buy only MicroTrains and run it all on Micro Engineering track right now?
    Don't be snarky and argumentative, Karl.

    Practicalities of the hobby mean that purchasing products from Chinese factories is a sad fact. But I avoid it now if possible. And yes, I run on ME exclusively except for some Atlas turnouts given to me.

    Atlas, et al, got themselves into this mess. They'll have to get themselves out. Maybe they won't be so short-sighted next time. China is not friendly.
    Paul Schmidt

    Southern Railway's Slate Fork Branch


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    Quote Originally Posted by Dave S View Post
    The big question is why did the Chinese Factory shut down?

    Also anyone have any insight on how tariffs will (or might) affect production of model trains from China?
    Hopefully high enough to drive production out of China and into a friendlier country.
    Paul Schmidt

    Southern Railway's Slate Fork Branch


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    The owner has health issues and no heirs, according the the AZL Z scales guys.

    Trey
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    I couldn't care less where they were made , made in Europe means highest quality but also highest price , China means reasonable quality at low price and US would mean reasonable quality at high price. Yes if they were made in the US a few Americans could work at these factories, but they would sell a lot less so the jobs created in the shops and online businesses would be less, so in the end jobs wouldn't make a difference. The only difference it would make is in your wallet.
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    Quote Originally Posted by Power Stroke View Post
    Oh your tender sensibilities. Alas hasn't produced a locomotive or anything else in America in my 50 plus year lifetime but that doesn't mean they can't or shouldn't. I buy them regardless because it is what it is. However, if they were built in America, and it meant employing even a few more Americans versus Chinese, they would get my money exclusively.
    Its not my "tender sensibilities" , its just how it is . And i am being sensible in this . , A large portion im sure could afford a 20% or more price increase on stuff made in the US , but the mass majority could not or would not . Example , just how expensive would one of the new Scale Trains Rivet Counter Gevo's have cost if made in the US ? Or one of Athearns large steamers ? How much more would sructure kits cost ect.... I get the brings jobs home part , we Canadians would like the very same thing , your not alone in that . But a company doesn't want to lose market share , and has a year end goal to make $XX dollars profit . So paying workers in North America a living wage with the cost of living here , would most certainy drive their prices up and volume of sales down , and the profits with that .Remember , this is a bussiness for them , and only a hobby for most of us . Yes Micro Trains makes it work , but they are a smaller company and dont produce as many units of car X and loco X , and therefore charge a small premium on the units sold . Example the SW1500 loco , bit over priced for a Life Like loco . They have a small operation with few employees , but still do ok , but i doubt they have shareholders like Atlas does . And it just comes down to paying people a wage which they could afford to live on in the US or Canada . Our cost of living is huge compared to the cost of living in China . And once again , im all for North American made trains , but my like most peoples wallet couldn't afford that luxury , and it would almost certainly drive people away from a fairy expensive hobby and certainly hamper newcomers to the hobby . And then the companies would suffer sales and eventually say enough is enough

    Steve

    PS , just how long could a company afford no sales , while they source a factory to make the tooling and get the production time they need to do runs ...a year ? 2 years ? more ?
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    AZL and Atlas are the only known manufactures according to AZL. AZL is well set up but they are looking for other manufacturers as we speak;:
    http://www.azlforum.com/thread/1273/important-news
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    Quote Originally Posted by Paul Schmidt View Post
    Don't be snarky and argumentative, Karl.

    Practicalities of the hobby mean that purchasing products from Chinese factories is a sad fact. But I avoid it now if possible. And yes, I run on ME exclusively except for some Atlas turnouts given to me.

    Atlas, et al, got themselves into this mess. They'll have to get themselves out. Maybe they won't be so short-sighted next time. China is not friendly.
    No intention of being snarky, sorry if it came across that way. Let’s be honest, if Atlas moved its manufacturing back to the US, prices would jump significantly and most people wouldn’t buy it. I’m all for domestic production, but Americans have become conditioned to the low prices overseas production allows. We live in a Walmart society where most consumers care more about price (how many “prices are too high” threads have we already seen?) over supporting domestic production.
    Karl

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    Quote Originally Posted by Spookshow View Post
    Actually, Atlas did briefly manufacture some of their N scale freight cars in New Jersey in the late 60's and early 70's (prior to relocating all of their production to China).

    -Mark
    Originally, the regular track products were made in the USA too. Specialized track products (switches - the three way and double slip, for instance) were made by Cassadio in Italy. When Atlas cut ties with Rivarossi, who owned Cassadio, I believe, moving production of freight cars to the US, as you said, they just discontinued the three way switch and double slip and had the regular switches made by Roco and then, moved production of the switches to the USA too, where it remained until moving all track production to China, along with everything else.

    Doug
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