I wonder about the effect on the LionScale product line - made (mostly) in the USA?
Lots of speculation and few facts. Maybe I am naive but wouldn't Lionel or MTH put out a press release or an update if they were significantly affected by this? Maybe there is little to no impact. BigRail
I doubt they will say anything because they don't seem to know what is going on. Plus, transparency is not a strong suit among retailers. Blow smoke and stall is more likely.
MartyE posted:Penn-Pacific posted:jim sutter posted:Would this be a good reason to move production back to the U.S.A?
Yes indeed, but , could they do that and avoid significant price increases?
Don't worry though with the significant manufacturing costs you can still pay more.
It's simple economics.
If the price of wheat goes up, the price of bread goes up
If the price of wheat goes down, the price of bread stays up
What impact will this have on the Build To Order strategy? If supply is disrupted, the more build to order items that are catalogued leaves less stock for dealer shelves and fewer sales during times of disruption in the chain.
Yes, this disruption in the supply chain could have some impact on these companies that import everything they sell. Of course, there is air freight but that is expensive. Eventually things will get sorted out but I would expect freight costs to increase which will cause higher selling prices. Now these companies have a ready made excuse for any late shipments !!
Story on CBS News radio that one Hanjin ship is being unloaded at Long Beach CA port facility. Also stated that 13 more Hanjin ships were due to be unloaded coming days/weeks.
Yes, they unloaded the first but there are a lot of additional steps that all cost money.
For you intermodal modelers put your Hanjin containers to the side.
The Portland Rose posted:What impact will this have on the Build To Order strategy? If supply is disrupted, the more build to order items that are catalogued leaves less stock for dealer shelves and fewer sales during times of disruption in the chain.
None. The supply will only be delayed. End result will be instead of October - items will come in in November.
Hang on to your hat though if shipping prices go up. We will end up paying for it in the end.
Isn't this post a little off topic? Don't mean to be "that guy", but just want to keep the forums here clean of clutter.
I don't think it's really off topic. While it does concern the hobbyist to a degree, it is also beyond any of our abilities to control.
What it does really affect - as subtly hinted by the very title of this post - is Lionel. Of course, this also affects the other companies, but Lionel has the clear majority of volume in sales of the starter set market.
The Christmas season is probably still the time when Lionel does the bulk of their business (and makes the bulk of their profits) in the traditional market, ie: Starter sets and related starter products, and then the holiday themed rolling stock and accessories.
Not having those products on the shelves could be very detrimental. Especially with the Christmas themed items. Even without the shipping problems discussed, in years past, dealers have legitimately complained that Christmas themed cars that arrive just days before, or even after December 25, become dead inventory and money losers for retailers.
Many of the serious train consumers on the forum here might be annoyed by the products they'd like being delayed, but they'll most likely still purchase them when they arrive. On the other hand, Christmas gift starter train set sales could potentially be adversely affected by this. Which could also have an impact on Lionel's bottom line as well as other companies. And that can have a ripple effect on an entire product line.
So yes, it concerns train consumers. But at the same time, it's out of our control.
