Jump to content
 

Dapol deferments - Class 50, Class 59, prototype HST, Battle of Britain - due to Brexit increasing tooling and production costs


Karhedron

Recommended Posts

Announcement from Dapol.

Well that sucks, I was looking forward to the Light Pacifics in particular. :(

http://Dapol.co.uk/index.php?route=blog%2Fpost&post_id=43#.WMvNx-hskGw.facebook
 

The effects of the decision to leave the EU last June continue, particularly on the devaluation of Sterling and the increase in the general feeling of uncertainty as the actual leave date looms. These effects coupled with the continued inflationary pressures being experienced in China means that the decision to invest in projects and develop new lines is becoming increasingly difficult. Not only is the unit cost of models rising at an alarming rate but the cost of the tooling is also escalating. Tooling prices are now more than double what they were 7 years ago.

As a company we appreciate that this is an increasingly expensive hobby and that the current economic uncertainty threatens discretionary model purchasing. The crunch that we find ourselves in with alarmingly rising costs, dwindling volumes due to higher retail prices being required means we have to be realistic about what we can and cannot develop.

It is my responsibility as MD of Dapol to ensure the company’s sustainability and the long term future of the business. Not only do I have a responsibility to our fantastic customer base but I also have a workforce which depends on Dapol’s success.

With this predicament at the forefront, the company has to make difficult decisions about our funding and prioritising of projects, especially those that made financial sense when first announced but currently do not. Unfortunately, some previously announced and mooted projects will have to be put on abeyance until the economic conditions become more favourable. This is particularly, but not exclusively the case in N gauge were the small size of the market, the relatively high cost of manufacture and natural cap on retail prices means that returns are least favourable. Projects such as the Class 50, Class 59, prototype HST, Battle of Britain and others are being delayed as result of this. Over the next two weeks we will update our development pages on the website to reflect these decisions, so please look there to find out about any of our projects that are of interest to you.

Coupled with this statement is also an apology from me. Dapol as a company has undoubtedly over announced products in the past which has led to this situation. The tendency to be overly optimistic about development times and unrealistic about what can be achieved has been prevalent. It is our intention that any new models announced from now on will have been researched and developed to an extent that the model will be in store within 14 months of being made public.

It is also our intention to make more products at our own factory in the UK. This is a slow process with huge learning challenges, however we all at Dapol are committed to this and are proud of what we make in our small factory in Chirk.

I thank you all for your patience and understanding

Kind Regards



Joel Bright

MD

Link to post
Share on other sites

Hi,

 

There is a tiny amount some ambiguity in the statement, whilst it states that N gauge is most effected, it says not exclusively, so when they say they are delaying the Class 59, is that only the N Gauge version, or both 'OO' and 'N' projects?

 

Simon

Link to post
Share on other sites

  • RMweb Gold

I think two very interesting nuggets in there. Firstly looking at making more stuff in the UK. Secondly the nearest thing to an apology from a mainstream manufacturer about the whole "over promise and under deliver" fiasco. I hope other manufacturers take note.

Link to post
Share on other sites

  • RMweb Gold

Be waiting for a lot of things........this decision will be the greatest example of hindsight in this generation. And you had the chance to say no to it all

Is that a song? If it isn't it ought to be...

Link to post
Share on other sites

Interesting comments from Joel on the Farsebook thread - whilst the delay is obviously bad news for their n gauge following, they appear to be re-tooling the o gauge milk tankers to accurately represent the promised St.Ivel version.  I would have thought n gauge development would have been a safer bet in tough times than o gauge, but perhaps not.

Link to post
Share on other sites

Does Dapol have any new tooling N gauge items in the pipeline now?

There is still some stuff in the pipeline I think. They haven't mentioned the Pacer or Class 68, they also have some more Maunsell coaches in the pipeline such as the BCK I think.

 

This a serious retrenchment but not a total cancellation.

Link to post
Share on other sites

Bad news in theory but at the end of the day this is just a hobby and I personally won't lose any sleep over the lack of DCC Ready 50 and Light Pacific (even though I really want a few of each), at least we all know the situation now, so anyone who had saved their pennies up for anything that is shelved can now spend money on other things instead. Dapol 33 for me

Link to post
Share on other sites

I wonder if the massive outlay that Dapol must have had with a raft of 'oo' gauge models that are now in tooling or tooled has also affected this decision Currently there is tooling produced and with cost,  for Class 121/122, GWR railcar, Class 59, IDA container freight bogie, the A4 Black Label premium range and the B4 was authorised for tooling a few weeks ago according to the Digest, none of these are yet earning from the retail market and the Class 68 and MJA Freightliner bogie boxes have only just come to market, but look to be sell outs. So in 'oo' gauge there has been massive investment in 2016/17 to a level that would make one of the 'big' players take a sharp intake, with 4 new releases planned by end of April (Class 68, Class 122, MJA twins and IDA container flats). Add to that the link up with Lionheart and the development of many 'o' gauge projects, with 'B' Set coaches about to come to the market and an autocoach due next month, plus more wagons, I for one had wondered if Dapol was trying to catch up with its back catalogue too quickly and whether they could support new products across three scales. No other UK outline rtr supplier is trying to develop and produce models in 3 scales.

It looks like the models paused are 'n' gauge projects, as the 'oo'gauge 59 is already tooled and the B4 is this years collectors model. If so, I can only commiserate with 'n' scale colleagues and hope this is a temporary blip. It sounds like there could be further price increases from Dapol. I have to wonder, as their prices have been very reasonable on the latest models, the new Freightliner MJA boxes in 'oo' gauge are about £40 for a twin set, that is £20 for each highly detailed modern image,bogie freight wagon, which would be double that from another manufacturer

Link to post
Share on other sites

  • RMweb Gold

Interesting comments from Joel on the Farsebook thread - whilst the delay is obviously bad news for their n gauge following, they appear to be re-tooling the o gauge milk tankers to accurately represent the promised St.Ivel version.  I would have thought n gauge development would have been a safer bet in tough times than o gauge, but perhaps not.

Henry Ford used to have a saying 'small car small profit, big car big profit'

 

Purely subjective and anecdotal but it seems to me that silver-modellers with disposable incomes are moving towards larger scales rather than smaller ones (I model OO and not O or N, but it seems to me there's quite an upswing in O sales especially with 'just about affordable' RTR models coming along a lot more frequently.

Link to post
Share on other sites

  • RMweb Premium

I suspect the O gauge market will weather far more price rises, there isn't the same "norm" about what a wagon should cost as the RTR market is so much more immature than N or OO. Consequently I suspect Dapol can heap 30% price rises onto O without anyone really caring/noticing. Do that in N and there are threads on here in seconds!

Link to post
Share on other sites

  • RMweb Premium

I am fed up with everything from manufacturing disruption to the black death being blamed all Daily Mail like on Brexit!  It hasn't even happened yet and for all anyone knows the current financial climate could still have happened anyway regardless of the vote result.

 

It just keeps being trotted out as a cover all excuse for pretty much anything.

Link to post
Share on other sites

Archived

This topic is now archived and is closed to further replies.


×
×
  • Create New...