Atlas acquires Microtrains

[track1]

My only concern with that sentiment is that Atlas is not a primarily N scale company. Like many large companies (looking at you, Walthers), N scale is a side hustle for them with HO and O being where most of their market lies. Multi-scale manufacturers love to tell us how N scale is small potatoes compared to HO.

How does what MTL does "scale up" to how Atlas does business?

How does a completely different way of doing business (local manufacturing, near-realtime announcement to delivery in monthly releases) fit into Atlas' business model?

Therein is the source of our collective angst.

I would agree that N scale isn't the primary focus of Atlas as a whole. However, as somebody in the industry and who has networked and talked with the Atlas staff- I think they have a few employees there who are absolutely passionate about N scale, and want to put as much attention into it as they can without taking away from the most popular scales- HO and O. When Atlas does their quarterly announcements, they usually have the exact same of close to the same amount of categories and SKUs announced in N scale as in HO.

I look at it this way- even if they're not a primarily N scale company- how many companies put more effort into N scale than Atlas does? I think you could make a case for: Micro-Trains before this purchase, Kato, and they maybe ScaleTrains, BLI, and my employer Now consider the number of companies that have a comparatively smaller (Athearn, Rapido, Intermountain) or zero (Walthers outside of Cornerstone kits) N scale presence.

As an N scale modeler myself, I understand the concerns completely of a company neglecting it compared to their HO scale offerings. But I have faith in the N scale advocates at Atlas to do the best they can, even if they don't manage the line in the same way as MTL did themselves.

Tyler
Bachmann R&D

[jdcolombo]

My only concern with that sentiment is that Atlas is not a primarily N scale company. Like many large companies (looking at you, Walthers), N scale is a side hustle for them with HO and O being where most of their market lies. Multi-scale manufacturers love to tell us how N scale is small potatoes compared to HO.

How does what MTL does "scale up" to how Atlas does business?

How does a completely different way of doing business (local manufacturing, near-realtime announcement to delivery in monthly releases) fit into Atlas' business model?

Therein is the source of our collective angst.

Porsche was not "primarily" an SUV manufacturer when it released the Cayenne.  Yet everyone in the automobile world recognized it was one of the best SUV's on the market when it was released.  That's because Porsche IS a high-quality automobile manufacturer.  It knows how to make vehicles and how to make them well (it may not know how to sell them in China anymore, but that's a different problem).  Atlas is a model railroad company.  It knows how to make and market model railroad equipment, and how to do this well.  And as Ed and others point out above, Atlas is VERY involved in N scale.  Basically my entire diesel fleet is Atlas; all my track is Atlas; about 50% of my rolling stock is Atlas.  They are not at all like Walthers, which never had much (any, really) interest in N scale.  Atlas has a LOT of interest in N scale and a LOT of investment in N scale.  Porsche has a LOT of interest in, and investment in, selling SUVs, even though one might argue it is "primarily" a sports car company.  (And oh, the wailing and gnashing of teeth by Porsche fans when the Cayenne was introduced . . . it was CERTAINLY going to ruin Porsche's sports cars; the 911 would become a Buick, etc., etc., etc.)

Will some things change?  Undoubtedly.  Will there be monthly releases anymore?  I'd bet probably not, but that remains to be seen.  Will production be moved offshore?  Yes.  Will the products, including couplers, trucks, wheels, etc. continue to flow regularly at the quality we expect?  Almost certainly.  I just don't agree with the concern that Atlas is somehow going to kill the golden goose.  If anything, I'm glad Atlas is taking over MTL, because I was beginning to worry about the long term viability of MTL.  Now I don't.

John C.

[robertjohndavis]

I'm guess I'm really just getting tired of everyone constantly shitting on every model railroad manufacturer for every single move they make.

I hear you, Ed. It does happen a lot.

I think this is different.

In this case, Atlas does have a mixed reputation with acquisitions, so there's some basis for concern beyond the knee jerk "who moved my cheese" reaction. And there's some chatter on Reddit from supposed MT employees that raises concerns about the future of things like the weathered line.

I also think this acquisition carries a lot more emotion. For many of us, the monthly releases, industry-standard factory weathering, and reliability of trucks/couplers have been staples of our enjoyment of N scale.

That means the loss of Micro-Trains isn't just "oh, I hope Atlas still makes my favorite MT boxcar." MT's entire business model has been a source of pleasure. As have their staff.

When I have made larger orders from MT, I often found a "bonus" car in the box. That's a small touch I have NEVER experienced anywhere else in model railroading.

And MT has been a source of standardization at a time when the NMRA is still adrift and shies away from things like reasonable coupler standards. How many of us have converted to MT trucks and couplers as our own standard? At least for as much as time and money allow?

Maybe Atlas will find a way to operate MT in similar ways, but we are talking about a company that has not been able to deliver product within reasonable timelines for years. They are notorious for not responding to service needs, while MT bent over backwards.  And there are legit concerns with quality and consistency (which were rarely concerns with MT). Plus moving MT out of the USA introduces all the potential for tariff BS and other challenges.

None of us know what to expect. If Atlas keeps MT as good - or better - than what it has been, I will be first the laud them.

If they announce that MT couplers and trucks will become their standard, I will open my wallet even more.

We shall see. The onus is on Atlas.

Whining is unproductive.

But I think it's OK to mourn.

Rob

[delamaize]

Since a lot of you guys don't have the faceballs, I'll repost what Atlas said on their topic about the acquisition before they had the audacity to close commenting on it.

There’s been a lot of talk about Micro-Trains tooling being ‘shipped off to China,’ so let’s clear that up right away. While Micro-Trains has had some limited production in China in recent years — at some of the same factories Atlas uses — none of the U.S.–based tooling is being moved to China. That assumption just isn’t accurate.

Atlas has been around for over 100 years. The company was started by an immigrant from Czechoslovakia, and over the decades manufactured products in the U.S., Japan, South Korea, Austria, Germany, England, Italy, Yugoslavia, Brazil, and yes, China. The point is: Atlas has always used a global production mix, choosing partners who can meet the quality, tooling and cost requirements for each specific product — not relying on any one country.

Something that often gets overlooked is that Atlas has always been headquartered in New Jersey. That’s where administration, R&D, marketing, advertising, parts and repairs, customer service, and distribution all take place. Those are American jobs that stay right here. On top of that, Atlas regularly works with engineers, designers, and consultants from across the United States on product development, tooling, electronics, and problem-solving. A lot of U.S.-based expertise goes into every product line, including we hope, some MTL employees who are offered Atlas jobs, and decide to stay. 

To be clear, no Micro-Trains molds or tooling are being sent to China. The core operations will remain firmly in the United States, and Atlas is actively looking to employ former Micro-Trains team members. Our goal is simple: preserve the Micro-Trains product line, support its skilled workforce, ensure product availability, and maintain the same high level of quality and fidelity that customers expect from Micro-Trains and Atlas

Also, if I remember correctly didn't we have an Representative from Atlas on this Forum at one time? If so, they're being awful quiet, they could easily come in here and squash rumors, but they're not, which leads me to believe that some of the rumors aren't rumors.

[squirrelhunter]

I don't know. Atlas seems to be pretty active in N: updating old (and inherited) models (this year: RS-3, GP60, Phase 2 GP38-2)

But all they did was add sound- not saying that is nothing but I suspect that was mostly leveraging work already done to bring sound to other locomotives, such as their existing GP 38/40 models. For example, you were one of the folks (correctly!) skewering LL/Walthers for the not so good execution of the fans on the phase 2 GP38-2. I strongly suspect Atlas didn't leave the fans alone because they liked them, but because they didn't have the capital laying around to fix that part of the tooling.

And thanks to their prior acquisition of BLMA, the old route to fix the fans with BLMA parts is now hit or miss. I think Atlas has released new runs of the fan parts? But they are not common on the ground if they have.

Just adding sound was the bar 10 years ago. Now Scale Trains and even BLI are doing locomotives with road specific details, like SP lightshows. And Atlas still has several loco models that have not been re reun with sound yet.
 

[Dave V]

Porsche was not "primarily" an SUV manufacturer when it released the Cayenne.  Yet everyone in the automobile world recognized it was one of the best SUV's on the market when it was released.  That's because Porsche IS a high-quality automobile manufacturer.

John C.

I'm sorry... comparing the popularity of N scale to the popularity of SUVs in America is a bit of a stretch.

Look, I have a ton of Atlas N scale stuff. Atlas makes good stuff consistently. And Atlas is certainly more committed to N than Walthers or BLI. I get it. But suggesting that acquiring MTL is going to suddenly be this big money-maker for them doesn't really gel with past history. Obviously they acquired them because they think MTL can contribute to a positive balance. I'm just saying that if/when things get tough, experience tells us that N scale gets shed first. Athearn, I'm also looking in your direction.

Obviously if MTL was going to be bought out by someone, Atlas is probably the best choice. Athearn and Walthers would probably have tinkered with it for a few years and then buried it. But MTL is also more than the  monthly release and runner packs. As was pointed out, it's also parts. Essential parts like trucks, couplers, roofwalks, etc. As big manufacturers continue to get out of the parts business, I worry for the MTL parts line.

And, frankly, I think we're all allowed to mourn the loss of an independent manufacturer with such a long, storied history that has been--in a very real sense--a foundation of N scale.

To be clear, no Micro-Trains molds or tooling are being sent to China. The core operations will remain firmly in the United States, and Atlas is actively looking to employ former Micro-Trains team members. Our goal is simple: preserve the Micro-Trains product line, support its skilled workforce, ensure product availability, and maintain the same high level of quality and fidelity that customers expect from Micro-Trains and Atlas

I'm very glad to hear this. But, the pessimist in me thinks this sentence should also include the words "for now." But--for now--I'll celebrate this as a victory. Regardless of our individual political leanings, we should all be happy when things are built right here in the US of A. Jobs for Americans, no tariffs, and the pride that some exquisite things can still be made by American hands.

[robertjohndavis]

If the plan is to keep tooling in the US, that should have been clearly stated in the announcement. Good PR can eliminate a lot of rumor and swirl. 

[Scott Nixon]

Well, they only said "none of the U.S.–based tooling is being moved to China"--which is not the same as saying the tooling is staying in the US (because 'not China' does not mean 'not being moved to any other country').

[CBQ Fan]

I just wouldn’t want to be the company responsible for alienating Micro-Trains customers if it gets screwed up. 

[peteski]

Will some things change?  Undoubtedly.  Will there be monthly releases anymore?  I'd bet probably not, but that remains to be seen.  Will production be moved offshore?  Yes.  Will the products, including couplers, trucks, wheels, etc. continue to flow regularly at the quality we expect?  Almost certainly.  I just don't agree with the concern that Atlas is somehow going to kill the golden goose.

No, they will not kill that goose, but what will be missing is the small company's way of doing things that we all love(d) for decades.  While Atlas does care about their customer, it was not the same as MTL. They are just too large (and obviously getting larger) to provide this kind of support and care.

You can't tell me you have never experienced some consumer company you were happy to deal with getting taken over by some larger company and the customer experience suffering because of that.  I don't see why this takeover will be any different.  It's pretty much guaranteed.

[Dave V]

No, they will not kill that goose, but what will be missing is the small company's way of doing things that we all love(d) for decades.  While Atlas does care about their customer, it was not the same as MTL. They are just too large (and obviously getting larger) to provide this kind of support and care.

You can't tell me you have never experienced some consumer company you were happy to deal with getting taken over by some larger company and the customer experience suffering because of that.  I don't see why this takeover will be any different.  It's pretty much guaranteed.

To @peteski 's point, remember when Testors bought PollyScale and Floquil. And the product lines dwindled. Then Rust-Oleum bought Testors. And now none of those paints we relied on are available.

Our cynicism is based on solid experience.

Here's hoping this experience is different.

[lock4244]

I'm guessing there's a reason this is happening. My bet is that it's very much not as turn-key as it'd seem.

There could be all number of reasons why this went down now and how it did. Maybe MTL's building needed a surprise $500k repair? Maybe a critical piece of machinery died and is uneconomical to replace. Maybe @JoeD decided to retire and they knew they wouldn't be able to carry on without his charm?

Sometimes when things are going well you can see trouble on the horizon and the decision to sell might be based on 1) getting out while the company has value, or 2) simply not wanting to endure another big fight (because running a business is generally one long fight, not always unpleasant, but a fight nonetheless).

[jdcolombo]

No, they will not kill that goose, but what will be missing is the small company's way of doing things that we all love(d) for decades.  While Atlas does care about their customer, it was not the same as MTL. They are just too large (and obviously getting larger) to provide this kind of support and care.

You can't tell me you have never experienced some consumer company you were happy to deal with getting taken over by some larger company and the customer experience suffering because of that.  I don't see why this takeover will be any different.  It's pretty much guaranteed.

Of course I've experienced that.  Many times.*  And I agree that if what you want to mourn is the loss of that "personal touch," then yes, you should mourn that.  It will definitely be gone.  But I don't think we need to mourn the existence or availability of MTL's products.  I'm betting that the couplers, trucks, wheels, cars, and yes, I think even the replacement parts, will still be available.  Perhaps even some things resurrected that have fallen by the wayside. 

John C.

* - My own "mourn" story.  20 years ago when my older son moved to Seattle to work as a software engineer for Microsoft, my wife and I visited a winery in Woodinville called Mark Ryan.  It was literally in a garage.  Mark himself poured the only three wines he produced.  Then they moved to a "storefront" in a strip mall a half-block away.  Mark no longer poured the wines, but there were a few more of them, all great, and they had a small staff that would recognize my wife and I when we walked in, even though we lived 1800 miles away and visited maybe twice a year.  And Mark would often drop by to see how things were going.  They had a tasting menu, but if I was interested in trying something not on the menu, I'd just ask and they'd open a bottle for me to try.  Then around the pandemic, they expanded and remodeled that storefront, and two years later moved into a brand new fancy building about a half-mile down the road.  The small staff ballooned; the space was much nicer, but the tasting room was now pure corporate.  Two tasting menus - pick one, but that's all you get.  Now every time we go, I'm a little sad and miss the "old" Mark Ryan.  But . . . the wines are still great, and now there are 20 of them, instead of 3.  More choices; more styles.  Some of them are even distributed in my home state of Illinois, and I can buy them at the local liquor store instead of hauling them back on Alaska Airlines or praying UPS gets them here in one piece.  Someone told me Mark Ryan is now the 5th largest winery in the United States.  I still miss the staff greeting me at the door with "It's the Colombos!  Welcome back!" even after an 8 month absence.  But all things considered, the "new" Mark Ryan is a better wine company.

[NSEGeorge]

I understand the trepidation, I even understand the speculation, as this is a sea change in the N Scale hobby. What seems a bit outsized is the vitriol. Give these guys some time to get this worked out. They are extremely aware of how important this is.

None of us know all the background on this. All I can say is that there is more to the picture than you are aware of. Eric and Vicki wanted to retire, and there was no one in the family to pass it on to. MTL does not own the building they are in. I do not know why they didn't offer it to the employees, but my guess is they know intimately what their financial situation is and whether or not it would even be possible.  While I would have handled the employees differently (and believe me, I think about that in my business a LOT as I get older), we really don't know what the situation is/was between MTL and the sale and the Edwards family and the company.

One of the huge problems being Medford based was consistent access to assembly laborers. the expense of training someone who then decided to go work in fast food (true story) and not being able to find replacements is a huge impediment to operation, not to mention growth. Key people were in place for a long time, and I am told those keys are being offered positions with Atlas, not just for transition, but ongoing operations. Whether they take the positions (which do not require them to move to New Jersey) or not remains to be seen. Call it BS if you like, but the challenges of maintaining that factory were discussed and it proved to be more difficult than was practical given location, resources and real estate challenges. And moving the facility to another place would be at least a year with all of the attendant problems and no assurances of any better staffing opportunities. (In this I speak from experience) Yes, there will be some job loss, and personally I feel bad about that. I know everyone involved would prefer not, but this is 2025.  I do know that Atlas is doing everything possible to maintain the release pattern and the identity of MTL. There is a lot of product planning and logistics to do so, but they are working on it.

I have received a lot of emails about how this affects the NSE. As you know Paul Graf (CEO) and the Haedrich family (Owners) of Atlas have also been very supportive of the NSE. I expect that it will continue. Will it be the same level as the combined support of Atlas and MTL? Remains to be seen, but I sure like this situation better than MTL just shutting down.

[Ed Kapuscinski]

No, they will not kill that goose, but what will be missing is the small company's way of doing things that we all love(d) for decades.  While Atlas does care about their customer, it was not the same as MTL. They are just too large (and obviously getting larger) to provide this kind of support and care.

Lol, Atlas is far from a "large company".

Again, we're not talking about Meta ("it's better to buy than compete") or Microsoft ("embrace and extinguish").

We're talking about SMALL businesses who make things in small numbers for us to enjoy.

I agree it's worth mourning the loss of Microtrains. I'm doing it myself. But I wish people would cut these folks a little more slack instead of lashing out.