Badcat on Chinese factories
Posted: Sun Nov 16, 2008 4:25 pm
Badcat's latest blog entry may explain why there are new re-releases of the BBI F4U Daisy June, F6F Vraciu, the delayed F-16 and F/A-18 repaints, defunct 1/32 F-104 repaint and the continuing saga of 21st Century's 1/18 line (King Tiger, etc.):
" Chinese Manufacturers Citing Rising Costs but Full of Hot Air
With an economic crisis now upon us, we are seeing some interesting patterns. The first is a reluctance of manufacturers to risk resources to produce new military toys. The second is the price they are trying to charge.
Scaling back production is understandable. Demand for diecast aircraft and plastic models is down, down, down. Producing anything successful at this moment in time is a tall order. New products emerging n the current climat typically have only a small "pop" and no "legs" whatsoever. Once the economic slowdown runs its course, manufacturers will hopefully throw the switch to the "on position" again.
Continued price inflation, on the otherhand, is just nonsense. We recently flat-out rejected a project because the manufacturer simply wanted too much money. Pure greed. Oil prices are down to a third of what they were in July making plastic cheaper and all the manufacturing inputs less expensive, as well. The dollar is fairly strong against foreign currencies, meaning that it buys more. The nation is negative growth mode, deflation is a distinct possibility. So, any manufacturer citing cost increases and trying to raise prices today is full of bull.
Here at the 'Cat we are bringing in new lines but are really emphasizing value to our suppliers. "Value" not meaning "cheap" but rather providing a lot for the money. The Hobby Master and Century Wings lines represent excellent values in my mind, with Marushin and Corgi not far behind."
" Chinese Manufacturers Citing Rising Costs but Full of Hot Air
With an economic crisis now upon us, we are seeing some interesting patterns. The first is a reluctance of manufacturers to risk resources to produce new military toys. The second is the price they are trying to charge.
Scaling back production is understandable. Demand for diecast aircraft and plastic models is down, down, down. Producing anything successful at this moment in time is a tall order. New products emerging n the current climat typically have only a small "pop" and no "legs" whatsoever. Once the economic slowdown runs its course, manufacturers will hopefully throw the switch to the "on position" again.
Continued price inflation, on the otherhand, is just nonsense. We recently flat-out rejected a project because the manufacturer simply wanted too much money. Pure greed. Oil prices are down to a third of what they were in July making plastic cheaper and all the manufacturing inputs less expensive, as well. The dollar is fairly strong against foreign currencies, meaning that it buys more. The nation is negative growth mode, deflation is a distinct possibility. So, any manufacturer citing cost increases and trying to raise prices today is full of bull.
Here at the 'Cat we are bringing in new lines but are really emphasizing value to our suppliers. "Value" not meaning "cheap" but rather providing a lot for the money. The Hobby Master and Century Wings lines represent excellent values in my mind, with Marushin and Corgi not far behind."