Trains.com Insider Interview | Wm. K. Walthers, Inc., CEO and President Stacey Walthers Naffah stops by the Firecrown Media Wisconsin office to visit with Trains.com Director David Popp. The shift in U.S. trade policies and practices remains the topic of greatest interest to hobbyists. You’ll want to hear, directly from Stacey, how tariffs impact the 93-year-old, Milwaukee-based business, functioning as both a product manufacturer and a global importer. Naturally, the conversation extends to other topics highlighting how Walthers is working to form a strong coalition of domestic manufacturers, as well as to expand the outreach of model railroading and the ability for more folks – young and old alike – to experience and enjoy the World’s Greatest Hobby!
More about Wm. K. Walthers new products
Explore a sampling of new and innovative HO and N scale model railroad products that Walthers continually produces for hobbyists to enjoy…and for Firecrown Media staff members to test and review too! You’ll find numerous product reviews of Walthers items here on Trains.com, Trains.com Video, and in the pages of Model Railroader magazine!
WOW! – What a great interview. Looking forward to more content like this.
I have been following the tariff impacts in the model railroad industry. As a general statement, the risk of having a substantial portion of your business depend upon China, was wrought with risk. This risk should have become painfully evident during COVID, and if any lesson was learned, diversity in supply chain should have been a priority. As far as super detailed models, costs could be reduced by developing a kit form. I and most older modelers are no stranger to this. In N scale for years, this was our only option, DIY. Approaching kits takes away the labor component of manual assembly, painting can be done in the USA, or by the modeler, or by a third party modeler as a lot of weathering is done this way now. The point is, there are alternatives. Yes, there is a pain period, recovering from risks that becomes reality is never easy. Not having contingency for the risk, well, that can be a death blow. If I had a shell, frame, parts, etc. I would not mind assembling and detailing myself. It might even be a side business for some. Certainly painting and weathering which is already a side business.
Thanks David and Stacy for this enlightening podcast. 👍
-jkelty
David,
Please ask Stacey to provide some of her “paths” contacts to other parts of the industry, that we as Modelers and Enthusiasts, to contact our Congressional Reps, to help advocate for exemptions.
Mike Maloney,
Yulee Fl.
The elephant in the room that nobody wants to talk about is that the biggest detriment with bringing back model railroad manufacturing back to the US is really caused by the modeler themselves. The reasoning is the modeler continues their insatiable demand for Ready-To-Run models vs. kits and countries like China and Vietnam are perfect for having the right labor market to satisfy this demand. The US and Europe can compete if just tooling / molding / packaging were the only requirements. However, the tedious and labor-intensive tasks of painting / assembly (and now even supplying factory-applied weathering makes western countries a complete a non-starter for this industry. In China / Vietnam, you can easily find enough employees to sit around a big table and intricately assemble tiny parts dipping a little needle into a cup of CA all day long. There is no labor market in the US / Europe that can satisfy this constantly growing demand of “Checkbook modeling”. The tariffs may end up bringing back some of the model railroad product manufacturing but the cost may be that the modeler will go back to doing the assembly instead of the factory.
Scott, I agree with you. Assembly, painting and super detailing used to be done by the modeler. In fact for some of us especially in N scale, this was the only alternative. It can be fun, rewarding. But sadly, I fear our get it now culture may not embrace this, but I would love to see this as an option.
Wow,
Stacey is very impressive and facing an erratic challenge (that keeps moving “daily”) very professionally.
I love the way she and the industry are collaborating so positively.
Thank you David and MR for this interview.
Jeff Lee – MMR
Stacey, like her father, grandfather, and great grandfather, has a ton of integrity. And like them, her love for the hobby and the hobbyists is obvious. She sits in a difficult seat right now, but I’m sure her attitude and foresight — along with her team — will get all of us model railroaders through this.
Model Rail hobbyist since I was about 3 years old. Now a retired bank Analyst. US companies knew there were risk in moving manufacturing to China. For the profit margins it offered almost all of the model train manufactures moved to China, accepting the risks. THAT risk has now landed upon them. There has been a lot written about the risks of moving the heart of your business to China so no crying now. I am not unsympathetic, I’ve run a hobby shop, run a hobby manufacturing company and worked in the industry.
I think this will work out in the end. It will be a difficult time. US companies need to also pressure Chian to come to the table and make a deal. Ut’s all one sided right now.
Thanks
The trade imbalance has been looming problem for multiple administrations. And yet, no leader stood up to raise any objections. We were going reach a tipping point sometime. Better to face this problem on our terms rather than suffer as a victim. We will come out of this better for taking measures to reduce the trade deficit now. Cheers
No one is talking about moving production because they are stuck in China. If tooling is cut in China the Chinese are part owner of said tooling. It is VERY close to impossible to get tooling out of China and to another country. Things happen to tooling….accidents and such. If you can get China to release tooling it cost as much as new tooling. This is what we have agreed to. There is a book ‘100 year marathon that goes into more detail. Thanks
It seems like Stacey took three minutes to essentially say what we all know… the majority of the products are manufactured overseas.
There is also no way that Walthers or any other model railroad manufacturer can absorb these tariffs without passing on at least part of the cost to us, the consumer. Unless the current administration alters this course of imposing such high tariffs, I believe many manufacturers won’t survive. Many, many modelers won’t suffer paying $500 for an engine that used to cost $250 a few months ago. Manufacturing of these products in other countries or even domestically will still incur an initial set up cost and will lead to a lack of products during that transition. No way around it.
Fact is… these tariffs will drastically affect all of us, regardless of any political affiliation.
The question no one is asking, is how do we move the means of production back to the US where we maintain control? It is one that must be answered.
That was incredibly informative and my hat goes off to Stacey and Walthers for taking proactive steps to manuver through the “trade winds”. Additionally, I wish I worked for a CEO who is so personable, positive and interested in the respective broader industry.
Keep us informed of any opportunities to speak up and advocate for tarrif exclusions.