this doesn't sound good...

[lock4244]

GM is also notorious for forcing their suppliers to live on the razors edge in terms of profit, or really the ability to survive at all. One little bump and there is no room for loss... so the doors close. My GF's company could do a lot of work for GM, but they don't thanks to Mngt's decision to stay away from them. A decision that probably saved them during the recession.

Other than autos and parts, maple syrup, new taxes, a holly unjustified self important smugness, and BS, I'm not sure there is anything else made here in Canada. Where does the "Canada makes everything" come from? If we want to manufacture in North America, the trick is to do it for a little less than the Chinese do. Lower shipping costs can go a long way to meeting that end, so can more efficient manufacturing practice, though labour will have to accept lower wages -  this is the killer in most cases. Though lower wages are livable if the taxes weren't so high, and they are painfully high here in the great white north. Sorry American friends, you just don't know what high taxes are.

I highly doubt much mfg will return here until all of the sweat shop nations erode their cost advantage thought higher taxes and wages.

[Philip H]

NAFTA Strikes again . . . .

Sorry John, I had to since we were talking about canadians making "U.S." auto parts . . . .

[cv_acr]

NAFTA Strikes again . . . .

Sorry John, I had to since we were talking about canadians making "U.S." auto parts . . . .

We also make "Japanese" cars... 

[Hyperion]

Lower shipping costs can go a long way to meeting that end...

Not on $20-$40 little tiny things it doesn't.

The cost to get an N scale car across the globe on a large order is measured in pennies.  The cost advantage of manufacturing in China (or wherever) rather than here is measured in dollars.

I highly doubt much mfg will return here until all of the sweat shop nations erode their cost advantage thought higher taxes and wages.

True, but there's a lot of sweat shop nations yet to work through.... still a great deal of SE Asia and we haven't even touched Africa yet.

[Mark5]

lol guys, Camaros are made in Canada (durn furners!) ;D

This thread is veering into silliness.

Mark

[Bob Bufkin]

Yeah, and I used to have a Chrysler made in Mexico.  Do you think that Mexico would be a good place to do model production?  Lots of labor and there are a lot of modeleres there.

[Puddington]

It occurs to me that if there is demand for a product, someone, soemwhere will attempt to fill it. Now; you might not like where it comes from; you might not like the time it takes and you may not be willing to pay what they want; but someone will almost always fill a true economic void, when one exists.

Maybe a Canadian; and American or  European firm will step up; maybe another Asian; I don't know. Maybe a short term shortfall will occur;  but for the long term I have no doubt that if we want to stick our hands in our wallets, someone will be there to take our money.

[lock4244]

I drive a ferin car... my Honda Element was made in New Jersey. We have a Honda plant in Alliston, Ontario, and yet the Element is made by dem Yanks... they took R jabs!

Seems to me if MTL can produce over here at a competitive price (their stuff is competitive IMO) then others can, too. Separately applied parts cost money and MTL does not have as many (for the most part)... comparing their covered hoppers to an IM or BLMA, the MTL are all one piece except for the plastic roofwalk and brakewheel. Those are easy to slap on compared to the ends of an IM covered hopper or the etched roofwalk with grabs. Just my musings, but labour and the taxes on labour is always the killer here.

[Philip H]

ISeems to me if MTL can produce over here at a competitive price (their stuff is competitive IMO) then others can, too. Separately applied parts cost money and MTL does not have as many (for the most part)... comparing their covered hoppers to an IM or BLMA, the MTL are all one piece except for the plastic roofwalk and brakewheel. Those are easy to slap on compared to the ends of an IM covered hopper or the etched roofwalk with grabs. Just my musings, but labour and the taxes on labour is always the killer here.

All the more reason for manufacturers to consider permanently switching some of their lines to kit form. 

[Rossford Yard]

Phillip,

I agree.  I doubt many modeles would apply individual grabs, but we may have to get used to applying one piece ladders, etc.  Low costs allowed more RTR, but its possible that higher costs may push us back to some minimal assembly, like screwing on the trucks, adding couplers, etc. to keep costs down.

That said, how many Kato Dash 9's are running without the two hood grab rails ever being installed?  A lot!

[2-8-8-0]

I never knew MTs were made in Canada...all the more reason for me to buy them! I hate the ride height, but the price is good (especially for undecs!) and they are nice cars.

Are any other major mfgs made outside china? Besides Kato and apparently MT i mean?

And until some semblance of political stability comes to Africa (and parts of SE asia, for that matter) i dont see a lot getting produced there. I dont see manufacturing flocking back here en masse either, but I do think that situations like this will open opportunities for smaller shops. Setting up for small ops like injection molded plastics or die casting of frames etc dosent require near the overhead or operating costs of, say, an auto plant.

Maybe heavy industry will never be what it once was, but "light industry" such as plastics, stamping, toolmakers, etc may well return...? Especially in the era of 3d printers, etc, soon it may be profitable for people to fill orders as they come in...

*Ahh, customer A wants 3 PRR I-1s....(starts program) coffee time!*

[Rossford Yard]

MT has one advantage that a new comer wouldn't have - their little factory up in Oregon has probably been paid off and they have no debt on that.  New equipment comes in increments rather than having to start from scratch.  I can see why its easier for a new company to simply subcontract in China.

For that matter, that Atlas article on Mr. Ting made him sound like Mr. Dependable until JP Morgan bought the place, and then had to sell it under its debt load. I guess he came back to help make things right, and it sounds like they are focusing on their 10 biggest customers, and putting others to the back of the line, which is good biz in almost any economy.

[asarge]

No matter what. The model railroad industry is a business, just like any other business. Changes happen because they have to. There are other factories over there that many of the young N scale whippersnappers are using and these companies will move production elsewhere. Maybe even outside China if it could be done profitably. After all that's why every one of them is in the business right. This may hurt some of those 60 importers who are weak financially, which maybe why Kader dropped some of them.

[John]

I have enough cars, engines and building kits that if every manufacturer stopped making stuff, I could still die happy ..

[Rossford Yard]

I have enough cars, engines and building kits that if every manufacturer stopped making stuff, I could still die happy ..

BLASPHEMY!