News column - 1
September 2013:
The latest model railroad products, news & events
by Richard Bale and Jeff Shultz
Manufacturing overseas becoming less attractive
Hornby reports that production of its Airfix line of airplane and
train models will be repatriated back to the United Kingdom
from China. Earlier this year Hornby brought portions of its
Humbrol paint facility back from China following labor disputes
and concerns about quality control. A Hornby spokesperson said
they can now react to market changes much faster as well as
keep an eye on production quality.
Marklin, another important European brand of models, recently
moved its remaining production of LGB products from China to
Hungary where the rest of LGB line is made. In addition to qual-
ity control issues, the dramatic rise of wages in China is rapidly
reducing the cost savings of overseas manufacturing. China’s
National Bureau of Statistics reports that private-sector wages
there rose 14% in 2012. This comes on top of a 12.3% increase
the previous year…
MRH-Sep 2013