Model railroading manufacturers are putting themselves into a tight little box by doing built-to-order, because it serves to compress an already thin and uneven market for their products. Please don't misunderstand--these companies are being forced to do this to survive, but taking this step is a limiting factor to long term growth.
Built-to-order is not a cure all, researching and developing and advertising a product costs money, and if said product is not produced there are costs involved. For companies like Lionel and Atlas build-to-order also leaves them vulnerable to competition from more responsive importer/manufacturers such as 3rd Rail, as 3rd Rail can get product to market quicker.
Jeff C
BTO is also happening in the HO world also. Athearn and Walthers come to mind. It's just that in HO there more folks available to order items and the LHS's are also more willing to take on some for stock.
Rusty
The tight little box also exists in HO, but it's a bigger small box with more players... 
Jeff C
