Why Such a Backlog?

[bigB]

Is it me or why are so many of the model companies out there (Atlas in particular) have such a long backlog on some of their newer products?

I know the standard these days is to announce a product early, get people interested in getting it by offering pre-orders which allows them to gauge manpower for manufacturing, and then set a release date.

It seems time and again Atlas and others have failed to meet their release dates. Youd think the economy was just humming along and the factories in China were booked solid. Some examples Ive seen are some of their track components and engines like the GP38s and 40s are well past their expected dates.

 

[Irongrave]

atlas as always had issues with delivery times so nothing new there

 

[blownoutcylinder]

It may be that with the news that showed up recently that some Chinese mfgs apparently are now on the ropes, we may be seeing more of this happening. Since most mfg has gone overseas we are also going to see anything that affects their mfg effect our ability to buy what ever we need. Get used to the fun and games of the new sport---

-----hunting and gathering

 

[ICG/SOU]

Do the companies like Atlas and Athearn use the same manufacturers all the time? I know that in some other industries, the US company gets bids from the Chinese companies, and often times one run to the next is handled by a different company, who themselves have other clients.

Everything I have of Atlas is slow. The B23-7 I got in October, originally had a release of June, then August. The O scale GP35 I got last June or July was originally for release in September of 2008. It's date was moved twice. Now the GP38s and GP40s are 3 months later than originally announced.

The delays have worked out for me, since I've saved cash for all of them. It takes a while to save up and pay as you go.

 

[bigB]

Well I guess Ill be looking forward to the wait then I guess. I am looking at a Gold GP40-2 and I was looking that both the expected time and the pre-order dates have both passed and the locos are still showing as pre-order at most of the online stores.

 

[UP2CSX]

As has been said, Atlas is notorious for slipping delivery dates. However, this now starting to happen to more companies. From what I have been able to find out in the financial press, there are four factories that manufacture about 90% of all the trains imported to North America. I know Athearn only uses one contractor, who is in Shanghai. The Chinese government has been very liberal about stimulating the economy, with easy lending to these factories. All that stopped two weeks ago, when the Chinese government stopped almost all lending, for fear they were creating the same kind of bubble we've been though. I think Barry is on to something in terms of delays. Without credit, these companies will have to use either their own money, which is minimal at best, or depending on companies like Atlas and Athearn to supply them with credit, which is non-existent. The only answer is fully paid pre-orders, and then wait until they get enough to justify starting the production line. However it's done, it's going to increase the cost and slow down production. If there's something you want that's in stock and you have the money, now's the time to get it. I think we're about to enter into an extended drought.

 

[diburning]

I talked to the Atlas rep at the Amherst Railway Society's train show in Springfield, MA today. He kinda avoided answering my questions and gave me the run-around, but he did say that Atlas, the company itself, was in financial trouble.

On a related note, he also said that the guy responsible for researching the dimensions for the GP40-2W was dissatisfied with his job so he purposefully screwed up the nose dimensions before quitting his job.

He did say some things about the trainman line that were hard to believe so he may have been talking out of his rear end.

 

[Selector]

Probably another disgruntled employee.

Guys, it is tough out there right now. I see that even Mike Wolf has relented and come off his high perch....he now offers straight DC engines, and will have to tweak his DCS decoders so that more people feel better about manipulating them using plain old DCC systems. BLI is scrambling, I am sure...and their latest issue of the much vaunted Y6b seems to be full of duds.

As far as I am concerned, these companies are their own worst enemies. Instead of thinking more smartly about how to retain loyal and satisfied customers, they have squandered a lot of good will by mailing out faulty engines, having to pay all the costs of repairing them under warranty, or replacing them, and then continuing to supply run after run of the same product with virtually no attempt at improviing them. Think Intermountain and their just-released second kick at the AC Cab Forward can. No better, or not appreciably so if my gleanings from the various fora are anything to judge by.

No one has any cash, the factories I'm sure deal only with cash, USD, and China holds boatloads of it in debt. Model runs, particularly new ones needing new tooling, cost plenty, and that's just to get them in containers and slogging across the Pacific. When they get dockside over here, other costs begin to mount.

Sheesh.....

-Crandell

 

[Espeefan]

Do the companies like Atlas and Athearn use the same manufacturers all the time? I know that in some other industries, the US company gets bids from the Chinese companies, and often times one run to the next is handled by a different company, who themselves have other clients.

Atlas, Walthers and Athearn are all in the same factory. It is huge and employs thousands of workers. Each company's areas are segregated from the others. For example, if you are a Walthers guy over there, you would not be allowed in the the areas where Atlas' work was being done.

There is an economic slowdown for sure from what I am hearing, and BLI is struggling with yet another lawsuit from MTH (thanks again Mr Wolf ).

This one is over that silly toy smoke. I say let MTH have it, but that's another thread! Costs are also going up in China, and that's yet another problem. Looks like our lives are going to stay interesting

 

[beiland]

Golden Period closing or slowing

As has been said, Atlas is notorious for slipping delivery dates. However, this now starting to happen to more companies. From what I have been able to find out in the financial press, there are four factories that manufacture about 90% of all the trains imported to North America. I know Athearn only uses one contractor, who is in Shanghai. The Chinese government has been very liberal about stimulating the economy, with easy lending to these factories. All that stopped two weeks ago, when the Chinese government stopped almost all lending, for fear they were creating the same kind of bubble we've been though. I think Barry is on to something in terms of delays. Without credit, these companies will have to use either their own money, which is minimal at best, or depending on companies like Atlas and Athearn to supply them with credit, which is non-existent. The only answer is fully paid pre-orders, and then wait until they get enough to justify starting the production line. However it's done, it's going to increase the cost and slow down production. If there's something you want that's in stock and you have the money, now's the time to get it. I think we're about to enter into an extended drought.

I think your right. I've been saying this for over a year. We've lived thru a golden period that is will be closing up significantly I believe.

Lets hope a number of these companies can keep their doors open as this competition is what has brought us all this variety and reasonable prices.

 

[cujo600]

I am having trouble finding Atlas track......kind of hard to add a rail yard without switches... I am being told the retailers will have them by the end of February.

Its hard for me to understand why Atlas can't keep up with the demand. I would think that would be a good thing for a manufacturer, having demand, that is.

Anyone know of anywhere with HO Atlas remote switches in stock?

 

[diburning]

Atlas, Walthers and Athearn are all in the same factory. It is huge and employs thousands of workers. Each company's areas are segregated from the others. For example, if you are a Walthers guy over there, you would not be allowed in the the areas where Atlas' work was being done.

There is an economic slowdown for sure from what I am hearing, and BLI is struggling with yet another lawsuit from MTH (thanks again Mr Wolf ).

This one is over that silly toy smoke. I say let MTH have it, but that's another thread! Costs are also going up in China, and that's yet another problem. Looks like our lives are going to stay interesting

Not True.

Atlas does not share a factory with anyone else. In fact, Atlas uses two factories, one for the trainman line, and one for everything else.

Since Walthers bought Proto, Walthers has been cranking out models in their own factory. I don't know about before, but it's changed now.

Athearn's factory lacks quality control.

 

[Espeefan]

Not True.

Atlas does not share a factory with anyone else. In fact, Atlas uses two factories, one for the trainman line, and one for everything else.

This information actually came from Walthers staff that had been to the facility. This complex does work for many manufacturers. Not necessarily in the same building such that Atlas stuff is coming down the line today and Athearn tomorrow and Walthers the next day. Different plants inside the complex handle work for different customers. China isn't like Japan was with dozens of small hole in the wall shops. It's pretty centralized. There are thousands of workers that live on the property, in barracks. Most are young women.

 

[Espeefan]

This information actually came from Walthers staff that had been to the facility. This complex does work for many manufacturers. Not necessarily in the same building such that Atlas stuff is coming down the line today and Athearn tomorrow and Walthers the next day. Different plants inside the complex handle work for different customers. China isn't like Japan was with dozens of small hole in the wall shops. It's pretty centralized. There are thousands of workers that live on the property, in barracks. Most are young women.

In the interest of accuracy I need to correct myself: Atlas, Bachmann, and Walthers are all in a large factory recently purchased by the same company that owns Bachmann. Even after downsizing, there are still 10,000 workers at this facility. The factory that does Athearn's work is right next door, so the big players are all pretty close to each other.

I have read where there was a problem with one Athearn model in other threads on this forum, and mayber earlier in this one, but in all the Genesis and RTR I've bought, F units, MP-15's, and SW-1500's among others, I haven't had any quality issues with any of them, except the crummy MRC sound decoder in one of the MP's ...works, just sounds lousy and that problem is fixed. Warped trucks can be caused by the tooling not being hot enough, or several other issues (not claiming to be an injection molding expert, but I've had a few discussions with manufacturers). I don't know that this constitutes "quality problems at the factory". Maybe if it happened with lots of different models. Of course if you bought some of the baddies, I can see where you might feel differently

 

[diburning]

Since the P2K drive is a direct clone of the Athearn drive, do they manufacture the drives for both brands in one room? (just the drivetrain, the motors are different)

 

[Espeefan]

No, the Athearn factory, though right next door, is a separate company. The drives are not the same either, now that P2K is doing that 14:1 helical gear thing. They seem to run a little quieter and smoother than the Athearn Genesis drives, though not enough to tip the scales one way or another IMHO