I received an email from an HO mail order dealer listing the companies affected and their response. Looks like the only O gauge importer affected may be Atlas. Also the main driver behind the shutdown was increasing labor shortages and cost.
Here's the bulk of the email. It addresses the affect on HO production and doesn't say anything directly about O.
In case you haven’t already heard, a large Chinese suppler of model trains just closed its doors, not for lack of orders but lack of labor and escalating costs: This will affect most manufactures, Atlas and Bowser say this affects all products announced since January 2018, Fox Valley says most all of their new products, Walthers and Rapido say this does not affect them, they have been transferring production to other factories, we may learn more next month that the National Train Show in Kansas City, MO August 5-12th, if you’re going to the show let us know what you hear.
Atlas has received notification from one of our locomotive and rolling stock suppliers that they have closed their factory. (Please note Atlas track and accessories are NOT affected by this delay.) Atlas is currently working with our network of suppliers to transfer the projects to others for completion. This will cause a delay in some previously ordered products. We apologize for this delay, thank you for your continued support, and will update you with more information as it becomes available.
Bowser says this will affect future product, more information to follow, they have removed projected delivery dates for all projects from their website till they have more information.
Fox Valley: Over the weekend, news broke that a large supplier of model trains in China has closed its doors. Fox Valley Models has used this factory for a large portion of our products. As of today, there is no clear path that will resume production in short order, or an easy way to move projects. With this news, we must reluctantly list all previously announced products as Postponed/Cancelled. If projects can be moved, it will take a number of months to do so, and then get a new factory up to speed on our projects will take even more time. We will keep all previously recorded pre-orders on file. If a resolution presents itself over the next few months, we will reconfirm specific projects as they get close (well into next year at best). If this process takes and extended time, it may be best to re-announce each project.
Intermountain railway company has become aware that our sole supplier in China has discontinued business without warning. This will result in our not having any new product releases for an undetermined period of time. Our expectation is that we will begin shipping a selection of new product within four months. Please be assured that Intermountain is dedicated to continuing to produce our high quality product line. Purchase orders with alternate vendors are already being arranged so we anticipate production to resume very soon.
Rapido has been shifting production to a new factory in Guangxi province and is ramping up production, says it takes time to train all of the new people, and models only leave the factory if they are at the required Rapido quality level. It's been a difficult transition period as the Rapido factory has moved twice in the last year, but we're almost through it. Training new people is nothing new. The problem with the last location is that we couldn't keep people more than a few weeks due to the labor shortage in the area. We were always having to train new people. At least now when we train them, they will stay for longer! Previously: The vast majority of the world's model trains are made in Dongguan, China. That is where Sanda Kan and Kader had their factories, and that is where the global expertise in model train manufacturing is centered. As I discuss in our most recent video, the rising costs in southern China mean that it is becoming difficult to make model trains there. Our prices are creeping up, but the costs are going up far more quickly.
Walthers says this does not affect any Walthers brand items i.e. Proto, Cornerstone, Mainline, SceneMaster, etc., but that Shinorhara track will be discontinued and replaced with Walthers code 83.
Ken
