Atlas Model Railroad Co. Agrees to Purchase BLMA Models Inc.

[loyalton]

The purchase probably gives Atlas some flexibility in suppliers/vendors. Atlas ain't Walthers. Nobody said so far that the BLMA line or name is going to be erased; it might be useful for the two entities to be allowed to be of two different minds under the same umbrella. There's likely some products still in early process for BLMA that one wouldn't immediately associate with Atlas. Remember also that Craig will be a consultant.

The trouble with a Shapeways style store for etching is that the first person to order has to pay the set up costs which drastically increase the cost of a small run of parts. Subsequent orders are reasonable, but who wants to go first?

Craig

The set up costs are not much. Somebody has to design/adapt something for N, then convert to a CAD drawing. There are a number of Chinese factories that will do etching, a run of frets can be as low as 100 there. Quality is an unknown from someone overseas although they are experienced with models/toys and will send a sample before production is started. Guess who's trying to get etched parts done and can't find local companies to do a run that small? CAD drawings, no problem. I could but am not gonna DIY. That route is for minimal numbers of one part, has QC problems if you don't have proper equipment, plus has the problem of waste disposal which for DIY etching is typically "dump it down the drain".

I think a real problem is justifying a relatively small run of stuff that can take forever to sell. The typical store stock level is 0-2 packages, which makes it clear there isn't a huge general demand for parts. The win-win could be for a manufacturer to have a release program that would include as many parts from, say, a fret of steps where that same fret could later be sold as detail parts and stocked as repair parts. BLMA has some capacity or at least has a supplier for etched parts (and castings) -- it would be to Atlas's advantage to keep that.

[mcjaco]

Scale Trains didn't win the race to the N scale version of the tank car.  Having the BLMA cars on display alongside their HO announcement doesn't really say anything about this sale to Atlas, unless I'm missing something?

I meant that if you read between the lines, and saw the tankers out there, clearly BLMA was selling off tooling, or looking for buyers.  It wasn't hard to figure out.

[sundowner]

I meant that if you read between the lines, and saw the tankers out there, clearly BLMA was selling off tooling, or looking for buyers.  It wasn't hard to figure out.

This is not the first time someone came out with the same car as BLMA, see ER Trinity Reefer.

[VonRyan]

[nkalanaga]

Why?  I can see where you might not like them, or they might not work well with your track, but is there really a need for them to "disappear"? 

I'm not likely to buy a bunch, as the wheels I have work fine for me, but the BLMA wheels don't give me any trouble, and I'm not replacing them.

[bbussey]

There's absolutely nothing wrong with BLMA wheelsets, including the original design which had smaller flanges and narrower treads than the current version.  I've never fielded any complaints regarding X58s, and every release has been equipped with BLMA trucks and wheelsets.  If your trackwork is sound, they work flawlessly.

[nscaler711]

If the wheelsets and trucks disappear forever, I'll leave the Hobby.... Micro trains trucks are worthless to me as the trucks raise to meet the bolsters, which increases the height, I am tired of my N scale stuff looking like O-27....
BLMA has a quality truck and wheels, if the wheels were sold separate I'd buy them over FVM. If the trucks and wheels came in bulk, I'd throw away all other trucks I own...
As far as this "merger" "buyout" whatever it is, I am concerned we will lose stuff like the detail parts, and trucks... And that bothers me.
Hopefully Atlas decides to keep the level of detail on the cars and keep them at their current prices... It's funny I can get BLMA cars cheaper than MTL cars, and still look a whole lot better, heck cheaper than Exact Rail too...

At least it was Atlas that got them, I'd hate if Horizon did, after Horizon bought Athearn, N scale dwindled alot, so did the customer support for it as well... As for Walthers.... We might lose N all together....
Who knows.... We shall see I suppose....

[Chris333]

So Craig is working on a business that makes (etched probably) metal business cards. And Craig is helping with the transition. Perhaps that is how Atlas will keep the etched parts?  Heck if I can etch parts I'm sure Atlas can.

Being that most of the BLMA stuff was modern I don't have much to talk about.

[BobRunty]

All of BLMA's etched parts are Made In USA, so judging by that and his newer business card venture, Craig obviously has a reliable and reasonable etcher here in the US. Hopefully Atlas will be able to retain them.
I still am gathering up some of BLMA's 5 chime horns though, as far as I know they're about the only game left in town. Although not 100% for my prototype, it's all I've got.

Bob

[mcjaco]

This is not the first time someone came out with the same car as BLMA, see ER Trinity Reefer.

Yes, I realize that.  But Scale Rails had the actual BLMA models on display. 

And Craig was at Trainfest.  Not as a manufacturer.  Just hanging out. 

Discussions were had, and you got the feeling there were things in the works.  Whatever, it's immaterial now.  I'm glad Atlas bought the line, and not Walthers, etc.  It should be good things for Atlas models, and if they keep the detail parts stocked, I'm a happy man.

[central.vermont]

Kudos to Craig and wish him luck in his next venture that I'm sure will be a success.
Atlas, I'm glad to see you were the one to get this line of fine quality models and details.
As to the future I hope Atlas picks up the ball and keeps running with it to the end zone!!!
I really would like to see them finish what Craig has started with the Search light signals in N, God knows that
there are a lot of us that would like to see this continue.

One side note of thought. Wonder if this is the start of more mergers? 

Jon

[Rossford Yard]

"One side note of thought. Wonder if this is the start of more mergers? "

Well, in the prototype world it would be. 

But seriously, mergers do make sense in a contracting industry, and more than ever, I see it as a contracting industry, especially in N.  An LHS magazines total circulations have dropped from 11K to under 6K in 10 years.  HO seems to be hanging on, but that might be age related.

But, I digress......However, IF there are dropping/static/only moderately risiing sales in MR as a whole, I have long believed there would be consolidation, more horizontal distribution, (i.e., Model Train Stuff being both a distributor and retail outlet to avoid the middle man)

I know many are trying to protect the traditional supply chain, but IMHO, bigger and fewer is almost inevitable.  I figure whatever warehouse space/advertisement budgets/overhead the bigs have is still partially empty/below capacity, and its the same cost to market, store, ship 60 products over 40, so it makes sense.   That full page ad in the magazines may require some smaller type, but one ad is cheaper than two!

And, I bet the purchase price of BLMA was cheaper than actually doing new molds to expand the product line.

What I don't see is anyone being worried about anything, as some typically do.  I see no reason for Atlas to pay for BLMA just to NOT sell their new product line, or purposely tee of N scalers, or anything else they are likely to be accused of.  It just seems like one guy wants out for whatever reason, while a long time player wants to expand, which is a good thing.

My predictions of the hobby being weak would be even easier to believe  if Craig got out and no one wanted his molds....Now I think that has happened to some lower quality molds, like old Con Cor., but I see this like and NFL GM - How often do franchise QB's get traded?  When one comes on the market, its rare, especially if it can be traded for at a fair price, so you better move.  And Atlas did......no Ann Rand here, where Atlas shrugged.......

[mcjaco]

I've heard Atlas has already rebuffed CP's last three offers.

[Ngineer]

I am quite worried, despite most being enthusiastic.

I'm not worried regarding the rolling stock, but the small parts. Will Atlas really sell all that was available directly through BLMA?

Like the direct order items?

The #80 drill bit comes to my mind. Honestly, I don't know where else to get it.

Or the N Scale Flat Car Conversion Parts. They couldn't be ordered through a dealer.

Just to be clear: Most of my locos are from Atlas, so this is NOT a hate posting! I will keep buying their locos, even IF they shut down BLMA Models.

   Javier

[SP-Wolf]

I am quite worried, despite most being enthusiastic.

I'm not worried regarding the rolling stock, but the small parts. Will Atlas really sell all that was available directly through BLMA?

Like the direct order items?

Or the N Scale Flat Car Conversion Parts. They couldn't be ordered through a dealer.

Just to be clear: Most of my locos are from Atlas, so this is NOT a hate posting! I will keep buying their locos, even IF they shut down BLMA Models.

   Javier

Well - this is my concern as well. Will Atlas do away with the detail parts-? I have a decent stock of them at the moment - but, that can't or won't last forever. Hopefully - detail parts will be a new addition to Atlas's wonderful line of N Scale products. And, that Atlas will add to the line of detail parts.

Wolf