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Good Morning everyone. This is hot off the news wire from Lionel. I am posting the entire press release. I hope to have further comment from Lionel during our next episode of Notch 6. I personally am a bit disappointed that instead of a six hour drive for the open house, that it will now be twelve. I do understand the reasoning behind the move, and I wish those in the Ohio location a smooth transition.


A MESSAGE FROM LIONEL SR. VICE PRESIDENT & GENERAL MANAGER HOWARD HITCHCOCK

CONCORD, NC (February 27, 2014) – Beginning early this summer, Lionel will begin to relocate its Customer Service Facility currently in Canfield, OH to Concord, NC. This decision moves us one step closer to our goal of operating the company from a central location. While this transition will be ongoing this summer through the end of the year, the Service Parts Department will be the first group to relocate to NC - followed closely by the repair and call center functions.

The move from Ohio will begin to take place in June with operations being fully restored at the Concord, NC location in August 2014. We understand this move will briefly interrupt the Service Parts Department's operations and also impact the timing of repairs. Therefore, we encourage our customers to place any part orders no later than May 10th, 2014. Both warranty and non-warranty repairs will be accepted up to May 5th, 2014. Our Customer Service Call Center will remain open during the relocation period with minimal interruption in phone operations.

I want to personally thank the Ohio staff for their hard work and continued dedication to Lionel. We are indeed fortunate that many of them have chosen to make the move to North Carolina. Their expertise and knowledge will be invaluable in the coming months as there is a lot of work to be done to make this transition successful. In the end, relocating the Customer Service Facility to North Carolina will allow Lionel to function more efficiently as an organization, more closely integrating engineering, production and service, which will ultimately benefit our customers and our products.

We appreciate your patience during this process.


 

Last edited by Rich Melvin
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Certainly not unexpected, but still rather sad to see (especially since those fine folks are just a few miles down the road from us).

 

I still need to make a trip down to visit the Concord operation, but plan to do so this spring or summer.  Fortunately, my sister and brother-in-law live only about a 20-minute or so drive away from Concord, so I can accomplish two extended visits in one trip with no need for a hotel room.

Last edited by Allan Miller
Originally Posted by Allan Miller:

Not really!  The distance from Concord to NYC is significantly greater than the distance from Canfield to NYC. 

 

Good point, I didn't realize that.

Consolidation most likely then.  No sense in having everything scattered the way the hobby has been going.  Economical rather then purely logistics.

My feelings are a bit mixed.

 

Though it's an understandable move by Lionel (and closer to myself in Atlanta ), I picked up the hobby from my grandfather and father growing up in Poland, Ohio (stones throw from the current location). My father attended the open house last year in Canfield and had a great time, I'm sure he'll miss having that resource and those guys nearby. 

 

Guess we'll just have to plan on a family get together in western North Carolina.

 

 

Originally Posted by moed321:

But there is another angle, this shows the commitment to NASCAR modeling which is another revenue stream. Within 100 miles around Concord in the vast majority of racing headquarters.

I agree. The die cast division will continue to play a role in the long term success of Lionel. The Concord HQ is just over a mile from the Charlotte Motor Speedway and the Z Max drag strip.

Originally Posted by scott.smith:

Why wait Alan? There's an LCCA Red Carpet event in Charlotte this month. I have to admit that every LCCA event I have attended has been top notch.

Scott Smith

I already have another event on my schedule for that weekend, Scott.  Plus, at this time of year the weather always is a concern.  I prefer to wait until spring or summer when I can meet my relatives for lunch at Chateau Morrisette on the Blue Ridge Parkway and then venture down to the Charlotte area.

No surprise here.......Centralization is common in business. I worked in NC for 30 years for a large bank. NC has a number of 'things' that are positive if you operate a business there over Ohio. Just plain old business.....

 

And yes...Lionel has had a number of different locations......but being MUCH older than MTH or Atlas and many different owners....not really surprising either.

While I am a car nut, as well as a train nut, I'd think train sets with NASCAR on them

would sell about as well as those with Elvis Presley on them.  (NASCAR being a

misnomer as those cars are anything but "stock")  But, even with that strange

third rail down the middle of my track, maybe I am too much of a rivet-counter.

A lot of...uh...unprototypical...stuff sells to OTHERS.

Originally Posted by Allan Miller:
Originally Posted by hirailsteve:

Guess we'll just have to plan on a family get together in western North Carolina.

 

More like south-central, although the western part of the state is definitely the most beautiful. 

Very true Allan, I suppose my time in Raleigh distorted my view of Charlotte's location.

 

On the plus side of the move, only about 2 hours drive over to Asheville, one of my family's favorite vacation destinations.

 

Originally Posted by Allan Miller:
Originally Posted by hirailsteve:

Guess we'll just have to plan on a family get together in western North Carolina.

 

More like south-central, although the western part of the state is definitely the most beautiful. 

 

 

Allan certainly has that right!

 

The scenery here is spectacular year round with summer weather best described as 'moderate' due to the higher elevations.  Concord can get pretty hot (100+) however.

 

…and there is a pretty good 3 rail O gauge club in western NC.

 

Steve - please consider this an open invitation the next time you're over this way!

Last edited by c.sam
Originally Posted by 3rd rail:

Nothing new here folks.  Was in the news last year.  Most knew it was coming.  It places them closer to New York city which is the port of entry for the Chinese made product.

We were told last year that almost all of the products come through Charleston, SC and that some products may come through a west coast port at certain times.

 

Coming through Charleston SC is about 1200 miles closer then coming from New York.

 

The REAL reason for the move...Lionel plans on offering trains in southern railroad livery (SAL, ACL, Southern, L&N, FEC, etc) only and they were afraid the guys up "nawth" would burn the buildings down

 

This puts them 170 miles closer to me, still 300+ but I think I can make the drive (if I make it thru the kidney stone operation I'm having this afternoon )

 

They'll also enjoy the BBQ and "Chicken Muddle" (Brunswick stew)

 

All kidding aside, it has to be $$$ as the reason for moving, from taxes to cost-of-living.

Originally Posted by Allan Miller:
Originally Posted by PRR2818:

Any clue on when the Normally Scheduled August Service Open House will be held yet?

 

I won't speak for the folks at Lionel, but my guess is an August open house this year is just about the last thing on their minds, and probably not apt to happen this time around.

Maybe they will have a "We would rather sell it than move it" sale

Originally Posted by base11:

I still miss having Lionel in Michigan since it was 5 miles from my house.

I'm kind of surprised that they still have a presence up there in Michigan.  I would have expected that to have been consolidated into the main operation even before the service facility.  But my guess is it's only a matter of time.  It's just logical, as Howard implies in his release, to have as much of the operation as possible consolidated in one place. 

 

Yes, know that in this "digital world" you can have your resources scattered all over the planet, but there's definitely a certain synergy created when operations are centrally located and people can interact as human beings rather than autonomously via a computer screen.

Ladies & Gentlemen,

  I first got word of this move about a year ago and am surprised it took Lionel this long to actually start the relocation process, in reality it's a good business move, especially Tax wise for them.  I also think in the near future you will see the offices in MI moved to NC also, maybe some others also.  It definitely will be a big business loss for both Ohio & MI, this is what happens with the proper business climate, old businesses like Lionel move to that location, when they are properly managed.

PCRR/Dave

Last edited by Pine Creek Railroad
Originally Posted by Pine Creek Railroad:
 It definitely will be a big business loss for both Ohio & MI, this is what happens with the proper business climate, old businesses like Lionel move to that location, when they are properly managed.

PCRR/Dave

I think it's been a long time since Lionel has been considered a "Big Business" in either of those states. Not sure how many employees are involved, but I doubt it's that many.

Last edited by cbojanower

Why is the relocation of Lionel's Customer Service / parts department meaningful to anyone other than those who live right near by?

I hope to continue placing my annual parts order on their sale day.
If they go to clear out parts to prepare for the move, I'd guess the parts will go to North Lima Trainworks. Last year, I prepared a list of desired parts to buy during the sale. A lot of those parts became unavailable on the Lionel site, and available on the NLT site just before the sale.

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