Nice and quiet this summer? Hmmmm, not according to what has just surfaced in Europe.
Sanda Kan - one of the largest Chinese toy train producers - cancelled the production agreements with a number of its European clients.
Those most likely most affected: BRAWA, Brekina, HORNBY, MÄRKLIN (incl. Trix) and others
to a lesser extent: Tillig, Vollmer and others
For the English language source check
Interesting reading!
It is nice to read further details of this. A post was made about this on the Aristo Forum a short while ago but of course only mentioned how it did not affect Aristo-Craft.
As you say the effect for those remaining in the fold, coupled with Chinese workers aspirations, might well bring about a price increase - so what’s new in the world today.
Over in the Olde Country we have been advised that taxation is due to rise on purchases and a lot else besides I am sure. But the old saying ‘there are no pockets in shrouds’ will mean that I still have room for more coal hoppers here. lol
One does not need a crystal ball to realise that little to none new product will be launched this year. Also a ‘good excuse’ for those who release news of upcoming releases and then need an excuse as to why products have not reached the market, even after years of supposed development. This imploding could also impact on quality as dumped manufacturers seek out new production companies and those companies come up to speed with the quality requirements sought by the market.
One also wonders as to the impact on Marklin, as supposedly the Chinese still retain tooling on some of their product range. Will they dump these items or cough up the money for the tooling left behind back in 2006? Urban myth maybe? Or maybe Newqida type products will flood the market.
Price increases? Over here in the UK where we used to have EUR1.50 = GBP1.00 , it is now EUR1.20 = GBP1.00 . This with the vast increases Marklin ut through…
120cm straight #10610 was GBP12 now more like GBP23
Harz 2-10-2 locomotive + factory sound and smoke was GBP1,200 now more like GBP1,800.
My wife used to moan about my spending habits but as far as I can tell I would recover the money on the second hand market if I chose to sell.
This is the first hobby where i have not lost money (so far).
Les
Nb Needless to say I am not buying at the current prices.
China has done something with the Yuan (sp) as well, that effects all Chinese products.
Meaning higher prices on everything.
Yes, the cost of our trains will likely rise by letting the Yuan float against other currencies. This can only be good for other countries and should have happened years ago.
It means that instead of being able to dump undervalued goods on World markets and transferring all the manufacturing jobs to China, it may once again be possible to actually manufacture goods in those countries that have lost that ability over the years of “Chinese” growth.
Hi Tony,
It also means that some mfgs will be in a major pickle i.e. looking for a new source to produce their goods. Re-training (no pun intended), new and additional quality issues, delivery delays (unless they can manage the transition) and the almost unavoidable higher costs if they want to maintain their usual quality.
Some of the mfgs put all their eggs in one basket, forgetting (or hoping against hope) what that could/would/will mean.
We just returned from a one week trip visiting the BC fjords; it was at times a bit choppy on the water. The ability to handle that varied, 
but it was interesting to watch.
The potential shake-out could be just as varied and interesting!
John Bouck said:Yukon Jack? ;)
China has done something with the Yuan (sp) as well, that effects all Chinese products. Meaning higher prices on everything.
HJ.
The old pun wll still apply.
“Never mind the quality. Feel the width.”
David.
If only we could get Yukon Jack here in Australia.
Goodson got me acquainted with the brew some years ago. I haven’t tasted a drop for a couple of years now.
TonyWalsham said:
David.If only we could get Yukon Jack here in Australia.
Goodson got me acquainted with the brew some years ago. I haven’t tasted a drop for a couple of years now.
For years now, the Chinese government has artificially kept the value of the yuan very low to advantage Chinese exporters to the world. This has also disadvantaged the world exporting to China, thus stimulating the Chinese to be more self sufficient.
Alas, with China the largest investor in the American government/economy (where do you think all the money came from to fight the war on terror and the post 2008 global financial crisis bailout!), floating the yuan could have a very dire effect on the U.S., plus the rest of the world with its spinoff effect.
Tim,
What spin off effect would that be?
Tony,
if the loan repayment was expressed in American dollars, then no problem. If expressed in Yuan then it is not unforseen that the Yuan could become a world standard currency and expressed in American dollars, could see far more U.S. dollars needing to be repaid than anticipated. How many other countries have sourced funds in China as well, post 2008? In 2008/2009, little money was available in Europe for bailouts, so it is most likely that Europe headed towards China as a source of funds also.
I doubt very much that the powers that be in the USA would have borrowed in anything other than US$. To do so would have been very shortsighted (as in criminally negligent), but then again when a lack of proper banking regulation and enforcement forced the USA to go cap in hand to China for bail out monies, who knows what the terms would have been.
Assuming the borrowings were not in US$, it certainly would not have been a good idea to force China to revalue.
So, my guess is the USA has forced China to short change itself in the face of potential trade sanctions. In which case everywhere else is going to benefit and China can go screw themselves.
Metaphorically speaking of course.
One of the interesting wrinkles is the clarifications issued from different mfgs. A fairly typical example being this one http://www.rapidotrains.com/telegraph_currrent.html from Canadian mfg Rapido Trains, complete with a “look-see” at their Chinese facility and solicitation of additional business from those in a “jam”. 
Very interesting and informative HJ.
Some years ago the UK sold off a lot of its manufacturing capabilities. I can’t say whether we led the field or followed.
The late Chairman Mao likened the Western countries (and their allies such Australia and other former UK colonies) to paper tigers. He actually meant that in a military sense: it seems he was incorrect on that score but correct in as much as we move paper and money around now more than making things.
HJ-
Interesting news item: Does Sanda Kan cancelling production with MARKLIN translate as LGB?
Are only two new LGB loco items featured in an e-mailed TrainWorld LGB News any index of non-production?
TrainWorld sent out the e-mail LGB loco promo limited to the “new” Forney and a Eurpoean steamer priced just under $2,000. Yes, the cost of a beautiful Nikon, a fully loaded Dell computer, or a restored JBL Paragon sound system.
So any further bits on everybody’s favorite non-company?
Wendell
Wendell Hanks said:
......So any further bits on everybody’s favorite non-company?
Wendell
I’ll be shot down for this, but;
From my very small window on the World; I sense that large scale model railroading has slowed right down. With the high price of track…and I gather it is going up again…and the prices of rolling stock shooting up; the average Joe can’t afford the game any more.
Some of us old farts who have all the track we can ever use, and equipment stashed in every likely spot; it isn’t really a problem; but as far as this part of the Model Railroad hobby, it sure doesn’t look at all like a growth area.
Long gone are the days of cheap labour in China; just like what happened in Japan and Korea, in days gone by. Where will the next source be for affordable toys like ours, and how long will it take to develop it…?
The economy is not helping at all, here in North America, with levels of disposable income at an all-time low. We all notce that most manufacturers have nothing in their warehouses, and little if anything on order. I’m told by dealers that stock items like switches and parts are hard to come by, to say nothing about stuff listed in the rest of the catologue.
New items are few and far between…even young Charlie Ro is only listing his one new item…the short tank cars…and at the price of what we used to buy a B’mann 4-6-0 for, not that many years ago.
You guys talk of LGB…egads, it seems a person can pick up one of their old N American production covered hoppers for $40…the label reads “LGB of America…made in China”…that’s old stuff…once that stuff is cleared…what’s left ?
You also mention two new locos…at prices that don’t invite new people to the hobby, let alone appeal to the old farts…the models they choose somehow don’t seem to attrack many cheers.
Aristo, and Ro, I think missed the boat years ago, dropping big bucks into BIG locos, that look out of place on the railroads of average large scalers. Where were the smaller branch line sized steam locos, that could look good on 5 foot radius curves…no not another 0-4-0 tank engine, or Dinky…we have more than enough of them. Diesels met the same fate. They went big on them too, but some of us can’t quite find the appeal of a -9, or any 6 axle loco, on 5 foot radius curves, pulling 5 cars around in circles …
To each their own.....enjoy what YOU like....
I hope things get better, for the newer generations of model railroaders.