Foreign Competition?

Okay.  I cannot think of a single thing in your topic to start a blog war with.  Sorry.

Bob, since you are the only one who responded, I don't mean to sound like a neophyte here. I know of two American based manufacturers Lionel and MTH who because of increased labor cost have been forced to export their labor overseas. Do German companies and Japanese companies who manufacture toy trains also rely on cheap labor?

Mike Maurice

PS. If this is so how can American Companies compete?

Didn't one of those European producers recently go out of business?

For the most part I think they mostly produce two rail with the exception of Marklin and concentrate on the smaller scales. Most of the engines and rolling stock are based on European trains not American ones.

I'm pretty sure at least some of the European model train companies use some offshore production for their products, if not all of them, two examples being LGB and Tillig. I believe the LGB US profile Porter 0-4-0 steam loco was made in either China or Korea, and the Tillig TT scale bedding track (a licensed copy of Kato's UniTrack) is made in China.

bill in FtL

Marklin is the worlds oldest manufacturer of commercial market electric toy trains, but even they have had their own share of problems in the poor economic times of the past decade.  They do seem to be recovering quite nicely now, though.  Marklin also owns LGB (Large Scale), as well as several other formerly independent makers.

Model railroading is a very popular hobby in Great Britain and throughout much of Europe.  There are a good number of toy and model train manufacturers in that part of the world, with the primary emphasis being on products in HO/OO, N, and #1 gauge (pretty much in that order, I imagine).  There is also an O gauge/scale market, but I'm not sure how big a slice of the pie it has.

Some European production is also being done in Asia, but they also are pretty good about keeping production in the Euro market wherever possible.  My most recent LGB items were made in Europe, as were the most recent Z scale (Marklin) trains I purchased. 

Based on previous personal experience, and given a choice, I always prefer products made in Europe or England.  Doesn't mean they're prefect in all cases, but they sure come pretty darn close.

From the standpoint of history, it would appear that the European train manufactures have little interest in our O-Gauge trains. I sure would not lose any sleep over this one.

Guys,

Honestly, there is a considerable difference between astounded and losing sleep.....not to worry, I am "comfortable" in my little American bubble. I just didn't know how vast our hobby is! Nice to know that our hobby is well liked around the world!

What is of noteworthy consideration here is that we as a group of hobbyists are not that extraordinary in fact, our hobby is on a worldwide scale, even though our O gauge scale may not be.

I just think it's weird that we're still considered odd in some circles, when we should be venerated.

Thanks Guys and Gals!

Mike Maurice

0 gauge three-rail is not a big factor in Europe except in Great Britain and the Czech Republic. British and Czech manufacturers sell to the U.S. market, but their market share is minimal due to high prices, weak distribution, and non-US prototypes. This is unlikely to change due to the high cost of tooling for the U.S. market, and the high risk attached to trying to compete with the existing manufacturers. MTH seems to be doing pretty well in the European market by introducing Euro-prototype models at much lower prices than European boutique builders. I see no trend in Europe to suggest that European builders are going to make any serious inroads to the American market.

From a personal point of view, I wish ETS would get a decent distribution network in the U.S. I like their 0 gauge tinplate products, but it's a niche market and so far ETS only has a few stocking dealers on this side of the Atlantic. They had a distribution arrangement with Weaver for a couple of years but nothing ever came of that. 

I see no reason why American toy-train manufacturers can't compete against foreign competition any more than American companies in other fields can.  If they are good, they will prevail, otherwise.  Of course, some European companies are very good.  Lego, for example, has its game on with product planning and marketing.  But among electric toy train companies I don't see anyone over there who looks really a lot better than Lionel or MTH - or a lot worse.  Bachmann?  Not sure how you classify them - I don't think of them as American, though . . . 

Model railroading is huge in Germany. Look at the HO display in Hamburg. I'd like to think someone in the USA could invest millions, employe hundreds and make money doing the same thing....after all we have a much larger population, but don't see it on the same scale. (Entertrainment Juction is nice...but no Hamburg)  But Germany has a high ratio of model railroaders than the US.

Many European based manufactures use production based all over Europe, Asia and at home. They do like any manufacture does. I have seen products marked as made in places not known for manufacturing.  But whatever works will be tried.

There is an incredible number of model train companies mainly in Germany, but I would say most are involved in model trains as opposed to toy trains. I don't really see how you call these companies competition.

LGB

Viking

Arnold (Wiking)

Rietze

Busch

Faller

Vau-pe

Auhagen

Brawa

ETS Praha

Fleishmann

Hornby

Jouef

Kibri

Lima

Marklin

Mehano

Piko

POLA (defunct)

Rivarossi

Roco

Tillig

Trix

Vollmer

Lemke

Those names alone would make a very big train show even before dealers and layouts. But which of those lines exactly are in competition with Lionel and MTH? I would say none.  It`s a very big world and there are very big model train communities especially in Germany and Japan that support those brands and have their own prototypes that they focus on.

LGB made large scale trains that became popular here.  But what one has to consider is the support network for repairs and accessibility of parts.  It does little good to buy a European product and try to order parts for it or even try to get it repaired.  If you've waited a long time for MTH to repair an engine board, think how long it might be to ship to a manufacturer in Germany, for example.  I think the only way there could be competition is if European companies have a dealer/repair shop presence here in the US.  And as someone else mentioned, a lot of European products are not really toy trains but rather more model trains.

The last Hornby OO loco I saw (a few years ago; a friend of a friend - not a Scot - models Scottish railways, specifically; there are so many nooks and crannies in this hobby...) was made in China. It was new. Very noisy runner, which surprised me.