Bachmann Industries

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Bachmann Industries Ltd
Type	Private
Founded	1833
Headquarters	Hamilton, Bermuda Hong Kong
Key people	Henry Carlisle (founder)
Industry	Model railroading
Revenue	USD $46.87 million
Parent	Kader Industries
Website	Bachmann Trains

Bachmann Industries is a Bermuda registered Chinese owned company, globally head quartered in Hong Kong; specializing in model railroading.

Founded and with its North American headquarters based in Philadelphia, Pennsylvania, Bachmann is today part of the Kader group, who model products are made at a Chinese Government joint-venture plant in Dongguan, China. Bachmann's brand is the largest seller, in terms of volume, of model trains in the world. Bachmann primarily specializes in inexpensive high quality entry-level train sets sold in the mass market. The turnover for Bachmann model trains for the year ended December 31, 2006 was approximately $46.87 million, a slight increase of 3.36% as compared to 2005.^[1]

Contents 1 History 2 Plasticville 3 Plastic models and other toys 4 Trains 5 Kader takeover 6 Big Haulers 7 Spectrum 8 Today and DCC 9 Global expansion 10 Trivia 11 Finance and acquisition 12 References 12.1 Notes 13 External links

[edit] History

Founded in 1833 by Henry Carlisle, the company originally specialized in vanity products such as Spanish Combs made out of ivory horns and tortoiseshell. Its target market was in the American South and Louisiana. After the Civil War it continued to make other type of hair ornaments and also walking canes. In 1899 Carlisle's firm, now run by Henry E. Bachmann, merged with a competing firm being run by Henry E. Bachmann's father, Henry G. Bachmann, and the younger Bachmann's brother, Walter J. Bachmann. The company changed its name to Bachmann Bros. By 1902 it started to use celluloid for its products and by 1912 introduced optical frames that were made from it. In 1929 they became the first American manufacturer of sunglasses. The line, "Solarex" would become very popular and later purchased by the US Army and United States Army Air Force for their personnel during WWII. Other famous products include shooting glasses for Winchester Repeating Arms Company (now the U.S. Repeating Arms), and Stein Eriksen ski goggles.^[2]

[edit] Plasticville

Bachmann's experience in plastics led to a mass-market plastic fence released in 1947. Originally intended for decorating Christmas trees it was adopted by early railway modelers. When Bachmann learned this they began producing other products for this market leading to the Plasticville line of buildings, which are still popular accessories for Lionel and American Flyer trains. Bachmann's Plasticville products, originally in O scale, and later expanded to HO scale, and N scale were originally manufactured by Bachmann in Philadelphia, but have been made in China by plastics molding manufacturer Kader Holdings Company Limited since 1999. The hobby of collecting Plasticville has increased in recent years to the point that the Plasticville Collectors Association was founded in 1999 and incorporated in 2001.

[edit] Plastic models and other toys

During the 1960s Bachmann produced plastic models of animals (Animals of the World series, Birds of the World series, and Dogs of the World series) called Nature Craft Kits. They also produced their own Mini-planes, Slotcars, military models (with Fujimi) that include fighter planes, helicopters, and Tanks; and toy robots called "Toys of Tomorrow" (with Tomy).^[3] Bachmann would drop the toy robots within a couple of years.^[4] The Bachmann-Fujimi models would be dropped during the 1970s. Bachmann dropped Slot Cars and Mini-Planes from its product lines after the Kader takeover (see below) but instead entered the Radio-controlled Model market.^[5] In 1982 they revived their Nature Craft Kits as Birds of the World.^[6] By 1987 they have dropped all other toys and only concentrated on Model Trains and Accessories.^[7] In 1998 Bachmann did try to sell a short lived product, a radio controlled motorcycle.^[8]

[edit] Trains

Because of the sudden popularity of N scale starting in 1966, Bachmann entered the trains market by starting its N scale trains products in June of 1968,^[9] with cars packaged in white jewel cases.^[10] However, problems of initial run led to a retooling the following year.^[11] In 1970 Bachmann entered the HO trains market.^[12] A second retooling occurred around 1973, when trains started to be packaged in black jewel cases.^[11] In 1978 Bachmann changed its logo to the present one.^[13]. Trains began to be packaged in blue jewel cases.

[edit] Kader takeover

In light of falling profits, in 1981 Kader acquired Bachmann. It changed the name to Bachmann Industries^[6] and used the new brand to expand worldwide, such as the European market. It is also part of the strategy to take over other failing companies in Europe and put them under one single name. The packaging changed from plastic jewel cases to white paper boxes with cellophane window.^[6] Starting from 1982 Bachmann began to slowly retool individual product lines one by one. A typical example would be the replacement of metal gears to plastic ones in the Diesel locomotives. By 1992 all cars were manufactured in China.^[14]

[edit] Big Haulers

In 1990 Bachmann started to produce large scale train sets called the Big Haulers.^[15] These G scale models include trains, shays, and also streetcars. Their most famous line is the Emmett Kelly Jr. circus trains, introduced in 1993.^[16]

[edit] Spectrum

In 1988 Bachmann introduced the "Spectrum" line of higher quality equipment, including updated motors, more realistic paint schemes, and better detail.^[17][8] Spectrum was considered a totally different company from the regular Bachmann company. The initial offering was a GE 44 Ton Diesel. Later on, the Spectrum line expanded to include a Pennsylvania Railroad K-4 Pacific, an EMD GP30, and a General Electric Dash 8-40C. In 1998, Bachmann introduced their Spectrum HO scale 2-8-0 Consolidation, which was selected "Model of the Year" by the readers of Model Railroader magazine.^[18] By 2000 Spectrum was no longer considered a separate product and became one of the Bachmann product lines, as Spectrum was finally included in Bachmann's regular catalogs.^[19]

[edit] Today and DCC

In an effort to gap the quality between the Spectrum brand and the regular Bachmann trains, Bachmann introduced a mid ranged "Bachmann plus" series in 1992 when production was moved to China.^[14] Eventually the entire product line would be upgraded to the quality of the plus series which led to the drop of the plus series and the birth of the current silver series in 1997.^[17] Bachmann doubled the MSRP of its products, and cars are now packaged in clear plastic display jewel cases.^[19] In 2001, Bachmann started to produce trains in On30 scale (O scale on HO tracks).^[20]

Since 2006^[21] Bachmann has been concentrating on implementing a Digital Command Control ("DCC") system and products in its product lines, with the help and partnership of the German company, Lenz Elektronik, GmbH. Bachmann is expected to release its Dynamis DCC system in 2007, which would enable Bachmann to catch up with the rest of the other DCC companies technological wise. Currently Bachmann HO Spectrum lines are DCC onboard, while the vast majority of its N Spectrum lines are DCC ready.

[edit] Global expansion

As well as introducing its own brands to North America, Kader, under the Bachmann brand, built itself up as the largest volume seller of model railways by purchasing other failing companies, using the Bachmann name to front a series of purchases in the rest of the world to combat the then poor perceptions of Hong Kong based production quality.

By 1985 Bachmann had established agencies in Corcieux, France, and also in Bologna, Italy.^[5]

In 1989 a European division was set up initially reusing the molds previously used for the Palitoy 'mainline' model railway products to create the Bachmann Branchline models. It took over Palitoy's location and established its European headquarters in Barwell, Leicestershire, England, which continues today as the Bachmann UK headquarters.^[15]

In 1991 Bachmann established a sales office in Ontario, Canada, but had it closed down in 1996.^[14][17]

In 1992 it bought Liliput of Austria, and established its Continental Europe headquarters in Fürth, Germany.^[16] In 1997 it moved to Altdorf bei Nürnberg, Germany, which continues today as the German Liliput headquarters.^[8].

In 2000 it bought Graham Farish.^[1][1] Chinese outline models under the Bachmann China name, opening the world's first Bachmann speciality retail shop in Shanghai in 2005. Bachmann China is based in Shanghai.

Kader's business model for each take over, from its original purchase of Bachmann to the present day, is to buy a perceived quality brand in the target market or country. The company then closes local in-country production facilities. Armed with state of the art manufacturing machines and AutoCAD systems, Bachmann then improves quality by re-engineering the models in Hong Kong, and reduces cost by producing the models in its jointly owned plant in Dongguan, China.^[1]

[edit] Trivia

Bachmann has a Chinese name (百曼) from which Bachmann China derived its Chinese name (百万城, or Million City).^[22]

百万城 is part of 上海静瑞实业有限公司, which has a subsidiary called 静安分公司. The latter company in turn sells anything from computers to construction materials. 百万城 seems to be a joint venture of Kader with 上海静瑞实业有限公司, since the latter is a state owned company.

Kader does not have a Chinese name even though it is based in a Chinese speaking country. Since it was a private company for many years and is registered in Bermuda there is no need of having a Chinese name. Kader currently is working on picking a Chinese name so that it can be publicly traded in Hong Kong and China. A Chinese name is required for all companies that are listed in the stock exchanges of both Hong Kong and China. The expected name is 開達集團有限公司.^[1]

Z scale is the only popular scales which Bachmann does not produce.

[edit] Finance and acquisition

Bachmann Industries USA is currently only engaged in distribution and marketing activities. Its net worth is about $4 million dollars as of 2006.^[1] In March 2007 Kader, via Bachmann, acquired 16.5% share of the Robot Factory (Robot Galaxy) for $1 million, plus an extra infusion of $1 million to that company. No further acquisitions of other companies or investments are planned in the near future.^[1]

[edit] References

• "About Us." Bachmann China. <http://www.bachmannchina.com.cn/aboutus/aboutus.html>.
• Bachmann Brothers Catalogue 1968, 1969, 1970, 1971, 1973, 1978
• Bachmann Industries Catalogue 1982, 1985, 1987, 1990, 1992, 1993, 1997, 1998, 2000, 2001, 2006
• Bachmann Industries European Catalogue 1985
• Bachmann Industries Spectrum Catalogue 1997, 1998, 1999
• Bachmann-Liliput. <http://www.liliput.de>.
• Greenberg's Price Guide to N Scale Trains. 1981.
• Kader Holdings Limited. <http://www.kader.com.hk/>.
• Kader Holdings Limited. 1999 Annual Report.
• Kader Holdings Limited. 2000 Annual Report.
• Model Railroader. June 1968.

[edit] Notes

[edit] External links

• Official Bachmann Trains website
• Kader Industrial Company Limited website (Chinese)