Higher costs are

[Greenmodelmonkey]

Extract from BBC Business News today...

 

Increased costs....

The small Welsh model train manufacturer Dapol has warned that the fall in the pound has affected the company "severely" and that the costs of all its imported products have risen between 10% and 20% since 23 June.

"We were hoping that the situation would stabilise and that the pound would regain some of its fallen value," said Dapol managing director Joel Bright.

"It is now clear that this is not going to be the case and perhaps a weaker pound is here for the longer term. As a consequence, we now need to recoup these increased costs from imported goods."

[Black 5 Bear]

Understandably so given the current market/currency situation, however if they increase prices their QC as in the case of Hornby needs to to improve dramatically.

[Tricky-CRS]

Understandably so given the current market/currency situation, however if they increase prices their QC as in the case of Hornby needs to to improve dramatically.

 

Unfortunately these price rises are to stand still not to make money or for improvements. Stock exchange and brexit to blame for this not the manufacturers, this is going to impact inflation next year.

[Free At Last]

It shouldn't affect the models they make in the UK.

[Wheatley]

It doesn't:

 

On a brighter note, as some of Dapol’s products are manufactured in the UK (albeit with some imported components), Dapol have been able to maintain our pricing structure set out earlier in the year for these

[dpgibbons]

Anyone know which products are made in the UK?

[gardenwall]

The change in the cost of imported models may not directly affect the production costs of uk manufactured goods, but the cost of raw materials tied to the exchange rate, - plastics, metals most things really, will also be hit. It just takes a little longer to feed through. They also will become more expensive.

 

Get used to it folks, this is the new reality. Worse - as the effective market shrinks because people have to buy fewer models, the chances are that one or more of the manufacturers will be forced one way or another to withdraw. Whether that is  by strategic decision or insolvency, the who and when is almost impossible to predict because it depends on many quite small factors. The first to go may give some breathing space to the remaining players but there may or may not be sufficient time before the next crunch. Import and export procedures will be changing which inevitably will add further stress.  None of that is peculiar to model railways, but being a recreational activity is likely to be harder hit than essentials.   Interesting times. 

 

We can always go back to making things out of cocoa tins ....   oh - er..... they are cardboard now!!!

[BG John]

We can always go back to making things out of cocoa tins ....   oh - er..... they are cardboard now!!!

As long as you can buy shellac, cardboard is fine!

[Elvinley]

Anyone know which products are made in the UK?

The kits and some rolling stock.

[asmay2002]

Stock exchange and brexit to blame for this not the manufacturers, this is going to impact inflation next year.

 

No.  The pound was overvalued well before brexit and a crash was going to come sooner or later anyway.  http://www.independent.co.uk/news/business/news/why-the-plummeting-pound-sterling-is-good-news-for-britain-a7353846.html

[Greenmodelmonkey]

Offshore outsourcing was always a huge business risk if you put all eggs in one basket as so many uk companies have done. Shame that so much manufacturing expertise and capability now resides on the other side of the world. I expect most of the China revenues from UK comes from the R&D phase as nothing much appears, production runs are so low to the point that very little appears to be in stock and almost everything promised appears to be on a 'Pre-order' basis. No wonder there are money concerns.... I have been waiting a long time to spend my money yet everything promised has yet to materialise... this is nothing to do with the low pound, but it does make matters worse.

[Tricky-CRS]

No.  The pound was overvalued well before brexit and a crash was going to come sooner or later anyway.  http://www.independent.co.uk/news/business/news/why-the-plummeting-pound-sterling-is-good-news-for-britain-a7353846.html

 

Thank you interesting read, I think my point still stands that the manufacturers are not to blame for the price rises. Yes the stock market, the banks and brexit are. Brexit is only to blame by the fact it has unsettled the market, the crash was coming I agree but when? It could be argued this would have happened had we voted to stay in as some would have been betting that way, so who knows that could have been worse.

 

Products produced in this country are unfortunately all based on imported raw commodities, components and machinery. We will hopefully now invest in design, technology and manufacturing and was again become a nation of innovators and makers.

[Hal Nail]

 

 

We can always go back to making things out of cocoa tins ....  

 

Does anybody even make things out of cocoa these days?!

[adb968008]

No.  The pound was overvalued well before brexit and a crash was going to come sooner or later anyway.  http://www.independent.co.uk/news/business/news/why-the-plummeting-pound-sterling-is-good-news-for-britain-a7353846.html

 

None of this helps the man on the street.

 

Should some foreign owned entity report a 20% increase in profits derived in the UK, it's going to take that back to their HQ, they aren't going to hand out 20% to the staff.

Similarly some british owned entity selling overseas making an increase in profits is more than likely going to offset that some how, again they aren't going to hand it out to the staff.

 

So for the most part, the man on the street has to settle for a rainy overpriced UK holiday, 10-15% increase in the super market with an increase in utility bills to follow, on top of the governments planned tax hikes and a pat on the back for their hard years work for their employer.

[Les1952]

None of this helps the man on the street.

 

Should some foreign owned entity report a 20% increase in profits derived in the UK, it's going to take that back to their HQ, they aren't going to hand out 20% to the staff.

Similarly some british owned entity selling overseas making an increase in profits is more than likely going to offset that some how, again they aren't going to hand it out to the staff.

 

So for the most part, the man on the street has to settle for a rainy overpriced UK holiday, 10-15% increase in the super market with an increase in utility bills to follow, on top of the governments planned tax hikes and a pat on the back for their hard years work for their employer.

 

For most UK companies making an increase in profits selling overseas is a short-term boost.  As we import almost all of our coal and oil and a very high proportion of our raw materials manufacturers costs are going to wipe out that short-term boost in profits.  Significantly this summer the price to the UK of oil went up at a time the price to the rest of the world went down.  Why? Because we buy oil in dollars and although the oil cost fewer dollars the shrinking pound meant we got less oil for each pound.

 

Long-term the only winners in UK companies will be those who generate all their own power from renewables and source all their raw materials within the UK.  Wise companies are spending every penny of their short-term gain chasing additional markets and/or getting decent advance deals on stuff they buy - or trying to pay down their overdrafts.....

 

Les

[Dunsignalling]

None of this helps the man on the street.

 

Should some foreign owned entity report a 20% increase in profits derived in the UK, it's going to take that back to their HQ, they aren't going to hand out 20% to the staff.

Similarly some british owned entity selling overseas making an increase in profits is more than likely going to offset that some how, again they aren't going to hand it out to the staff.

 

So for the most part, the man on the street has to settle for a rainy overpriced UK holiday, 10-15% increase in the super market with an increase in utility bills to follow, on top of the governments planned tax hikes and a pat on the back for their hard years work for their employer.

Governments weren't created for the benefit of the man in the street, they are provided for the benefit of the man in the penthouse apartment.

 

John

[TomJ]

I think if people were aware of the true impact of Brexit on model trains the vote would have been very different indeed.

 

We send £350m a week to the EU. Let's spend it on model railways instead.

[No Decorum]

That’s a much better idea than spending it on the NHS. We need something to live for.

[adb968008]

I think if people were aware of the true impact of Brexit on model trains the vote would have been very different indeed.

We send £350m a week to the EU. Let's spend it on model railways instead.

I spend that much each week already, at least it feels like it.

[mikeharvey22]

To be honest I am getting sick and tired of the 'Remainers' and their sour grapes blaming Brexit (which thanks to lots of unnecessary political dawdling hasn't actually happened yet!) for everything from inflation to the bubonic plague.

Of course it is not just the "remainers". There is a sizable bunch of "exiters" I know who thought we were just voting to keep out immigrants, and are none too happy with the post-referendum collapse of the currency. I think that the over-sensitive readers should recognise that "Brexit" is shorthand for the referendum result. The currency collapse after a remain vote would still be a currency collapse, and we would be blaming the EU and the remainers instead.

[TomJ]

My wife definitely thinks I spend £350m a week on trains.

 

It's just possible that my comments were being slightly tongue in check rather than an in depth political analysis of the situation

[Roger Sunderland]

There may well be a price rise in models invented, designed and produced in China due to a fall in the pound BUT.....

The price of a Bachmann Mk1, to my knowledge, has just about doubled in the last 2-3 years pre Brexit or any fall in the pound.

 

Nothing to do with a fall in the pound, it's either greed or, more likely, that having just about cornered every production market, with the help of brand owners, incapable of looking at things longer term, the Chinese can charge whatever they like. The skills and factories in the parent companies country don't exist anymore.

[GNR Dave]

Surely the fall in the pound is down to currency speculators. Economic conditions in the UK have not changed enough to warrant a 20% drop in Sterlings value, Brexit or no Brexit.

Tell you what brothers, come The Revolution, currency speculators. Wall. Last fag. Bang bang !   

[No Decorum]

Last fag! What a humanitarian!

[Talltim]

There may well be a price rise in models invented, designed and produced in China due to a fall in the pound BUT.....

The price of a Bachmann Mk1, to my knowledge, has just about doubled in the last 2-3 years pre Brexit or any fall in the pound.

 

Nothing to do with a fall in the pound, it's either greed or, more likely, that having just about cornered every production market, with the help of brand owners, incapable of looking at things longer term, the Chinese can charge whatever they like. The skills and factories in the parent companies country don't exist anymore.

China IS Bachmann's parent company's country