Page 7 - TPM Issue4
P. 7

Summer 2020




                Klaas de Vries, Managing Director, Mahler + Partner GmbH

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                        The production at Diecast Masters / USK Scalemodels has ramped up since the end of March. After an eight-week
                        period during which it was impossible to produce anything we slowly started again. Using models which were on
                        hand the producer was able to fill a container that was in the factory and send it on its way. This container reached
                        us at the beginning of April.
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                2     There are a variety of delays. The first new items produced at the middle of April were shipped out immediately; we
                        expect to receive the Cat 330 and Cat D11 shortly. The development of a few models, like the Cat 6060 in 1:87
                        scale, will probably be postponed for a few months, therefore, we cannot expect this model before 2021.
                 3
                          would really like to have a reliable crystal ball. It is not only for us here in Europe or in the US but also for our
                     I
                        producers in China who are under massive pressure. The makers had calculated that after the re-start, they would need
                        to satisfy the demands for the export markets. But just as they were able to deliver again, everything here came to a
                        full stop. We all know that collectors’ items are not things that are crucial for survival, at least not for the majority.
                        How long it will take for the economic situation to reach a point that will allow our customers to purchase models
                        again? It is impossible to foresee; however, we definitely expect that our customers in the Caterpillar business will
                        still require promotional models.



                Mike Lawson, Sales Manager, Tekno

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                        We are very fortunate to have reached good production volume again. To reach this stage, Tekno worked very hard
                        internally and we hope that from now on, production will remain stable.
                 2
                        Because we did not announce any new items at the Toy Fair, this current situation has not impacted us greatly. Our new
                        releases flow year-round into our sales catalogue.
                 3
                        The whole market while very critical is also exciting to watch. Naturally, there will be changes in the collecting scene
                        due to reduced hours of work or even layoffs! There will also be changes in the industry and in the transportation
                        business. We can only hope that the crisis will pass without causing us major damage, but the main thing is that our
                        customers and collectors remain healthy.



                 Arthur van Ulft, Managing Director, AT Collections

                       We are continuing with production which is possible because customers appreciate our products and continue buying
                 1
                       them, resulting in good sales. All items that were in production are now finished and on transport.
                 2
                       In the 1st quarter after Chinese New Year, the production stopped because of Covid- 19 virus. Once the factory re
                       opened, there were fewer workers than normal so it slowed down a lot. At this moment, the factories are now running
                       ok so there is a minimum delay of 3-4 months. We are also experiencing delays from OEM reviews and comments lists
                       for models that are in development.
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                       We still believe in our products and our customers and are cautious with risky projects (when there is no OEM order)
                       but they are pre selling in good numbers so it should be OK. We can’t see in the future, but using the pre-selling method
                       gives us a good overview per product on how many to produce. We are cautious but still producing the items we
                       announced.



                 Gary Peterson, Sales Manager, CCM

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                       Yes, we are working remotely from the office to the greatest extent possible. We are also consolidating shipping days
                       to limit our time in the warehouse. In addition, we are following recommendations from the CDC for sanitizing and
                       maintaining distancing.
                 2
                       The virus shut down put our manufacturers behind schedule on completion
                       of models but they are now back to near normal production levels. The unknown at this time is how much of a back-up
                       there will be for container space.
                 3
                       It’s impossible at this time to make predictions for anything more than the very short term. Changes in the industry are
                       happening every day but it’s only speculative guessing as to what their cumulative effects will be over the long term.





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