Large Scale Central

So Long M-T-H

General Discussion
#1

Dear Loyal M.T.H. Customers,
June 8, 2020 - First, on behalf of M.T.H. Electric Trains, I want to thank you for the support and encouragement you have shown my company over our 40-year journey. From humble beginnings and a lot of hard work, we were able to build one of the world’s largest model train manufacturers - one unquestionably buoyed by your unwavering support.

In particular, I am proud that M.T.H. has released more models than any train manufacturer in the history of our hobby. The variety, quality, and infusion of technology throughout our offerings allowed M.T.H. Electric Trains to help bring enjoyment to all who share our wonderful hobby.

It is, therefore, with mixed emotions that I tell you I have decided to retire in 2021 and close the business. The last two M.T.H. catalogs, our 2020 Volume 2 O Gauge catalog, and our 2020 HO catalog and all non-delivered items from our 2020 Volume 1 O Gauge catalog, 2020 Ready-to-Run Train Set catalog, 2019-2020 S Gauge catalog, and 2019-2020 G Gauge catalog will feature the last products produced by M.T.H. Electric Trains.

The new items featured in all these catalogs will be available beginning Summer 2020 through April 2021 and will carry our limited one-year warranty supported by our Authorized Service Center network and the M.T.H. Service Department. Upon our closing in May 2021, our ASC network will provide warranty coverage through April 2022. A list of M.T.H. Authorized

Service Centers is available on the M.T.H. website and will be updated as M.T.H. Authorized Retailers join the program over the coming months.

M.T.H. Electric Trains would not have enjoyed success without the support of the M.T.H. Authorized Retailer network. While traditional retail has changed significantly over the past decade, the independent hobby shop has been and continues to be the most important cog in our distribution chain. I truly appreciate the support and friendship these shops have shown M.T.H. I wish all of them good luck and prosperity in the years to come.

Finally, I want to thank all of my employees for their hard work over the years. Most of them have been with me for decades and their loyalty and talents were paramount to our success.

With thousands of tools and molds and a wealth of intellectual property, a new model railroading company may arise from my former company as I entertain various options and buyers. One scenario is a new company organized and owned by members of my current staff. Their decades of experience, work ethic, and creative talent will ensure success regardless of who owns the assets while providing a welcome bridge between the past 40 years and the future.

The remainder of my time will be busy as we clear out inventory and other miscellaneous items accumulated over the past 40 years. As that process evolves, we’ll be offering consumer and retailer purchase opportunities

Again, from the bottom of my heart, thank you for your loyal support for all these years.

Mike Wolf, President
M.T.H. Electric Trains

#2

Boy Vinny, your just chock full of good news…(https://www.largescalecentral.com/externals/tinymce/plugins/emoticons/img/smiley-wink.gif)

#3

Ken Brunt said:

Boy Vinny, your just chock full of good news…(https://www.largescalecentral.com/externals/tinymce/plugins/emoticons/img/smiley-wink.gif)

If camping season was not shut down this season I wouldn’t know any of this stuff!

We have done more work to our garden railroad this season and have run more trains then in the last 5-years.

Hopefully MTH gets purchased, my entire ceiling layout in my office (my winter project) is all MTH O-scale.

#4

One has to ask where there manufacturing is done. if it is in China that could be part of the issue. I have not been close to this line (MTH) at all so pure speculation on my part. I suspect model train manufactures that deal with China on any level will find it difficult going forward. Is Lionel still thriving? they were at each others necks a few years ago as rivals in court.

Al P.

#5

I remember that court battle. Turned a lot of folks off to Mike’s Train House. I was impressed by their 1:32 line, but not enough to consider the cost of changing scales.

But, if you read Mike’s letter, it is more about retirement than anything else. My take is that Mike has made the decision to retire and is announcing it early. He is still planning to deliver their new catalog items and maintain warranty support for at least 1 year after the last item is sold. If the current staff are able to purchase the business, that is preferred, but he leaves open all other options, including shut-down if that’s the only way out for him.

#6

With all the investment, and value in the tooling, I would be surprised if someone doesn’t buy at least part of the company and continue the line. But I was wrong when I said the same thing about another company that dried up and blew away.

I only own a large scale boxcar or two of the MTH line. Most of their products were out of my price range. But even though I don’t own much MTH equipment, its still sad when our community shrinks by the loss of another manufacturer.

#7

Ken Brunt said:

Boy Vinny, your just chock full of good news…(https://www.largescalecentral.com/externals/tinymce/plugins/emoticons/img/smiley-wink.gif)

No kidding …Like my boy says “It’s whatever” press on !

#8

Well in the short amount of time since the original announcement was made they have now posted on there website that the DCS and Proto systems will continue and still develop new product.

The repair department will also be parted out with new service vendors at the conclusion of MTH operations in 2021.

But no notice if anyone will take over making trains, at least not yet anyway.

#9

I saw it coming. Sooner or later, manufacturing in China was going to bite these importers in the backside. China is not our friend, never has been. I’m thinking that Mike just got out while the getting was good.

#10

You got that right, Steve. I think we made a huge mistake in sending so much of our industry over there.

#11

Bean counters (accountants) tend to look only at the up front costs of things. They usually don’t see, nor consider, the long term costs of things. I have been at odds with bean counters most of my career. In my career the bean counters “save” money by purchasing a less expensive alternative, but that choice costs many times the savings in the long term. So it is/was with many companies who outsourced to China. They saved a lot of money up front, but now the long term costs are coming due.

#12

I worked for several years in the Sensor industry designing assembly tooling for this company who would fabricate overseas, build /test it on US soil, and send it to overseas locations including China for use. one thing that always amazed me was the high reject rate these final assembly’s created due to their Foreign assembly, I had heard that in some cases the reject rate was close to 80% on some finished assemblies. these used lots of micro circuit tech, miniature strain gages and such, but the waste along the way was very high.

on has to wonder how much trash they make in other industries.

Al P.

#13

Wow. Quite the month/year for closures.

I don’t have MTH items, but I’ve been to their HQ (about 20 minutes from my house), seen their very cool layouts, and spoken with one of their senior engineers. Gorgeous products, like their GG1 and Triplex and many others… A visit to their show room is drool city, even for this old 1800’s V&T fart.

I’d expect that the employees would at least try to buy the business and carry on, but as Mike said, he’ll be weighing that outcome among his options. One way or another, the stock and tooling and IP will be sold to some entity, and it will be interesting to see who that is.

Sad news indeed; sadder still for its reinforcement of current trends. But thanks very much Vincent for reporting it.

Cliff

[edit] That Triplex link is to the O scale version, but I’m pretty sure they used to offer it in No. 1 gauge. Here’s their current No. 1 catalog.

#14

And on another forum some other news :

http://www.gscaletrainforum.com/index.php?/topic/1743-mth-closing-in-2021/&tab=comments#comment-15254

#15

https://en.wikipedia.org/wiki/MTH_Electric_Trains

Edit to read twice before posting

#16

Al Pomeroy said:

I worked for several years in the Sensor industry designing assembly tooling for this company who would fabricate overseas, build /test it on US soil, and send it to overseas locations including China for use. one thing that always amazed me was the high reject rate these final assembly’s created due to their Foreign assembly, I had heard that in some cases the reject rate was close to 80% on some finished assemblies. these used lots of micro circuit tech, miniature strain gages and such, but the waste along the way was very high.

on has to wonder how much trash they make in other industries.

Al P.

I used to deliver steel to auto plants. The waste there was incredible.

#17

Al Pomeroy said:

I worked for several years in the Sensor industry designing assembly tooling for this company who would fabricate overseas, build /test it on US soil, and send it to overseas locations including China for use. one thing that always amazed me was the high reject rate these final assembly’s created due to their Foreign assembly, I had heard that in some cases the reject rate was close to 80% on some finished assemblies. these used lots of micro circuit tech, miniature strain gages and such, but the waste along the way was very high.

on has to wonder how much trash they make in other industries.

Al P.

Wait, there’s a SENSOR INDUSTRY? With waste built in? Who knew?

#18

Cliff said - “Wow. Quite the month/year for closures.”

Yep, if “Back to the Future” ever comes true. 2020 might be a year to avoid.(http://largescalecentral.com/externals/tinymce/plugins/emoticons/img/smiley-cool.gif)

#19

What with the closures, pandemic, riots, and the year is only half over. I would say so Ric.

#20

Looks like they’ve sold the headquarters:

https://www.bizjournals.com/baltimore/news/2020/04/20/columbia-gateway-warehouse-sells-for-14-5.html

Sounds like they had this planned since they sold the building a few months ago before the formal announcement.

I regret not visiting the place even though it’s only a couple miles from me.