Skip to main content

Reply to "S Gauge - Sequestered and quiet here??"

Wow Rusty. That's pretty heavy stuff right there. I can understand your dilemma, though. IF you decide to return to HO, be advised that you can get some very GOOD non-DCC engines from essentially all the manufacturers. Bachmann, Atlas, etc. If you purchase these RTR, the it's open the box, set on the track, and play.

I wish I had a more upbeat outlook for S scale. But it really seems that over and over again, circumstances have conspired against S scale.

In view of the S side of MTH, I a'feared the scale will brace themselves for what may happen in view of the SHS line: Nothing. Adios SHS line.

As I see it:

Lionel will be fine and dandy with the former SHS line fading away. Lionel's market is Hi-rail and traditional S. Make no mistake, Lionel is very aware of the demographics in motion within the very small niche of S, which is similar to what is happening in the O 3-rail world, but the numbers are even smaller (less profit potential) in S.

As we all know, Boomers are aging out and passing. This is already putting a lot of product on the secondary market (with much more to come), but NOT new customers with money burning a hole in their pocket for S scale products (or O 3 rail). I would be highly surprised if Lionel obtains the S line from MTH, and if they DID, it will be at least two years before any motive power product starts trickling through, for the product will have to be redesigned to be "Lionel-ized" with Lionel electronics. NO way on God's green earth would Lionel EVER use DCS tech. Thus, IMHO, Lionel is very doubtful for picking up the SHS line.

The only other option, American Models, will not have the deep pockets required to purchase the SHS line. Besides, as Rusty pointed out, Ron is aging out, also. Like many small businesses, I suspect that AM is asset rich, but cash poor. I also suspect he makes just enough money to keep afloat and have an acceptable living, but would NOT have the needed venture capital to purchase SHS from MTH. Frankly, I think the SHS line was a very expensive experiment for MTH, and, as I perceive it, became a liability. Piece meal sales of specific products may happen, but again, this depends on just who has (or if they do, would be willing to risk) the venture capital they're willing to sink into a retracting model railroad industry, especially at this precarious moment in US history?

"This precarious moment in US history": To wit: Co-19 with its dramatic downturn of the economy, resulting in countless small business shuttered forever, wide-scale violent insurrection in the streets, losing infrastructure because of same, etc, etc? It will be a HUGE job to rebuild this Nation after the panic-induced economic damage, along with the property damage (once the violent tantrums are over).

All of the above and more makes it terrible timing for MTH to attempt selling their business segments.

Having said all of the above, I do wish Mike and his family the best and I don't blame him one iota for wanting to cut his business losses so as to minimize damage to his personal finances and move on.

All fer now. Off to ride my motorcycle.

Andre

OGR Publishing, Inc., 1310 Eastside Centre Ct, Suite 6, Mountain Home, AR 72653
800-980-OGRR (6477)
www.ogaugerr.com

×
×
×
×
×