Hornby Hobbies Announces Warehouse Move

[RJS1977]

Given that prior to the move to China in the mid 90s, a typical British-made model diesel loco cost around £30, and an inflation calculator shows inflation over the last 20 years to be approx 50%, it ought to be possible to make entry-level model diesels in the UK for around £45 now. 

[Phil Parker]

Given that prior to the move to China in the mid 90s, a typical British-made model diesel loco cost around £30, and an inflation calculator shows inflation over the last 20 years to be approx 50%, it ought to be possible to make entry-level model diesels in the UK for around £45 now. 

 

Inflation may have run at 50% but according to the ONS, wages have risen by 62% and as they make up the largest chunk of the costs then the bill will be higher than you think. I suspect other manufacturing costs will also have risen faster than inflation.

 

More to the point, if anyone introduced a range of diesels with moulded handrails, pancake motors and flanges that bump along the sleepers of Code 75 track, would anyone rush to buy them? If they would, there is plenty of choice in the second hand market.

[jjb1970]

There is also the point that to compare modern Hornby with pre-China Hornby is comparing apples and something very different to apples. The modern product is vastly more detailed, expected to be much closer to the prototype, massively better drive mechanism, DCC ready, much better paint finish etc etc. Does anybody want to go back to the old Hornby? For sure that'd definitely be one way of reducing the cost of models but I'd rather pay for a better product.

[brianusa]

The 'old Hornby' was geared for the kiddy market whereas current Hornby is obviously intended for adults who have more disposable income and can theoretically  purchase more expensive models, which they obviously find preferable.  Part of any hobby is what is called over here," Monday morning quarterbacking" which is another way for those in the think they know group to analyse the game or in this case, the company.  Also every hobby has its share of Cassandras as well as its supporters who rarely agree but happily share the same model railway interests.

 

Brian.

[Andy Hayter]

Given that prior to the move to China in the mid 90s, a typical British-made model diesel loco cost around £30, and an inflation calculator shows inflation over the last 20 years to be approx 50%, it ought to be possible to make entry-level model diesels in the UK for around £45 now. 

As well as wage inflation, raw material prices have escalated way beyond your 50%.

 

Oil - the basis for all of the plastic components and the energy to run the production machines - was under $19/barrel in June 1994 and today is nudging $106.  That is not 50% inflation, that is 500%+ inflation

[jjb1970]

There is also the fact that any inflation calculator based on the last twenty years will be distorted by the shift to outsourcing manufacture to lower costs. The amount of labour required for the sort of detail we expect on models today is way higher than for the somewhat crude models of the pre-China era of British outline models, and British labour is not cheap. Note that it is not just an escalator based on salary/wage increases but also the number of hours required. 

[Ron Ron Ron]

.....I suspect other manufacturing costs will also have risen faster than inflation.....

 

Not just manufacturing costs, but a lot of the overheads in running any sort of business in the UK have escalated over the last decade or so.

e.g. Energy and utility costs, property rents/leases, Business rates, Insurance, complying with legislation (e.g. H&S) etc, etc.

 

 

 

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