The Model World is not immune

[PDH]

An item posted on another diecast collectors site -

"As weakened national economies limp further into financial catastrophe, and commerce shrinks in the face of receding consumer demand, the world of collecting is not immune. I hear of more closures among retail outlets, and of some manufacturers reducing production quantities, whilst at the same time keeping a low profile, perhaps not wanting to draw attention to their lower level of activity. For example, Hans-Georg says, ‘I have had little information from Minichamps and other firms for some time; not many new items, and many companies have problems with casting firms who supply them from China. In a circular letter Schuco stated that their Chinese supplier had gone bankrupt, and they are having problems retrieving their moulds. All they have new are 1:87 models made by HighSpeed’."We have also been told that Corgi and Biante may not get shipments from China in the last three months of the year, as a Chinese casting firm has collapsed, though it is not known if it is the same company as the one used by Schuco'."

It will be interesting to see if and what the impact on model farm items production is.

[robbo]

That is quite worrying, not just for model collectors, but also for the wider economy as China is supposed to be one of the few countries bucking the recession and still producing.  \ \

[Leakeyvale]

Article about to be published in my model club's magazine - yes Schuco are affected

" A few weeks ago one of the well established factories which specialise in 1.18 replicas in China went bankrupt and closed its doors for good. There were three well known brands that were affected by the closure, these being Truescale, Biante and Schuco.

The Australian bran d lost all its tooling for new releases, Biante has simply cancelled all its new subjects.Truescale Miniatures were more fortunate than Biante because they had a man in China who was able to retrive the companys new tooling. In fact it was rumoured they had to buy their tooling back in a closing down auction, upsetting as they had already paid for them once.!!!

The factories are in a difficult position in China as they are obliged to meet the higher wage rates imposed on them by the government. The die cast brands are very unwilling to pay for these increased costs because they know collectors will not buy their models if the prices continue to rise. It seems to me tat this is just the tip of the Iceberg and perhaps this is just a glimpse of what is to come in the future."

[Niels]

I also heard ROS are having difficulties coping. Models are now only retailed in dealer boxes and ordered on demand of the manufacturer. (like the Grimme harvester and Krone forager). This is simply because ROS can't afford to stock the models themselves and hope to sell them all.

Hopefully they'll stay on top of the game as they make some lovely models.

[jdc]

I suppose this was bound to occur, when the primary producer gets squeezed from both sides - higher input costs and lower profits as firms higher up the chain try to maintain their 'cut'.

[Leakeyvale]

The problem is most models are now sent to China for the major part of production because they are not only cheap but the chinese are very, very good with finishing.  There are very few manufacturers doing the work in the country of origin. SMTS are one I can think of but they do not produce farm models and are a small[ish] company producing kits and factory handbuilts in-house.

Whatever happens the price of new models is going to soar

[PDH]

Whatever happens the price of new models is going to soar

And as a result sales will fall. This will lead to fewer models being produced and no doubt a few major names pulling out of the market.

Times are going to be tough.

[SPN]

There are serious economic problems in China, just like everywhere else. The system is broken, and the politicians are too afraid of the bankers to start banging heads together to make them work for us instead of for themselves.

http://www.wsws.org/articles/2011/nov2011/chin-n29.shtml

Jeremy Clarkson for Prime Minister!