My e-mail to Model Expo got a very courteous and informative reply from Mr. Mosko, the president of the company. Since he said it would be ok to share his e-mail with anybody, here it is:
Hello, John.
Thanks so much for your letter.
This is Model Expo's 41st year and it has been 27 years since we acquired Model Shipways from John Shedd and Sam Milone.
Yes, we have some problems but we are at no risk of disappearing.
The problems started over 4 years ago when I decided to retire and dedicate time to having fun doing things other than running a manufacturing business. Business was doing pretty well so I turned the helm over to my best and brightest and made him general manager. Although, he had some good marketing and internet skills he did not like the manufacturing end of the business. He let production run under the management of a person who reached her level of incompetency and started creating disorder
As our business grew with newly designed items the production manager became more and more disorganized to the point that our "fill rate" on kits dropped off severely in spite of a growth in demand.
A year ago I came out retirement as Model Expo had suffered 3 years of falling sales at the rate of over 15% each year. Much of that was the elimination of foreign ship model kits. My general manager chose to find other employment and the production manager was a short time ago. I found a more capable person to run manufacturing. In spite of these production and slow delivery problems sales last year actually increased 10% and demand for some of our products like our airplanes seems to be insatiable.
You are right, we have very few items on the shelf today and website says it all. On the other hand we are having a lot of problems keeping up with demand. Example ... yesterday we made 25 Rattlesnakes, but we had 23 back orders and the other two were snapped up immediately, so there are none available for another 3 to 4 weeks. We still manage to make 30 Constitutions per month but cannot keep them in stock, etc. etc. The situation is getting a bit worse since we have European distributors who are lining up and sending us advance payments for our airplanes. We cannot make enough to satisfy demand. We actually have two brand new kits in the Model Trailways series that are ready to go into production but will not until Sept. because we simply cannot catch up with our older products. This week we hired two more factory workers bringing the total in the production area to 9 people. John and Sam had 3 including themselves.
Solid hull kits ??? My predecessor did not like solid hulls .. I don't know why he announced Kate Cory, Newsboy and R. Taney as I have no immediate intentions to bring them back until we get our current line of products produced in sufficient quantities to meet demand. We are limiting production in solid hulls to Phantom, Sultana, Harriet Lane. Our carver in N.C. is shipping all of these hulls as I write. We have heavy back orders on all.
Bottom line, John. We really are shipping everything but most of it are back orders. Most of our kits are pre-sold and so you don't see them as available. If you have a kit in mind order it and chances are good you will have it within 30 days. We are currently producing and shipping around 60 kits per day and are working hard to get up to 100 kits per day.
Sorry, for being long winded .. but I am trying to give you a sense of what is going on.
Feel free to share this message with anyone you want.
Marc Mosko
President
Model Expo Inc.
3850 N. 29th Terrace, Suite 106
Hollywood, FL
I find this quite reassuring. Looks like the big problem at the moment is back orders - and when they get caught up things should stabilize.