Thanks for your responses. Around 1970, when I was building lots of models, I think kits were approx $2-3, a small jar of Testors paint 15 cents, and I could afford a model every 2wks on my allowance. I remember lots of "3 in 1" cars that provided fun build options, and resulted in lots of spare engines, tires and other parts lined up in boxes in my Lab. As time went by and my skill improved, I started pulling early efforts off the shelf and back to the Lab for reincarnation with lots of mods and customization using the spare parts. That was lots of fun and saved some allowance!
I haven't read a response that changed my impression that, unfortunately, modeling is on a steep decline caused by rising cost of the hobby and by a change in culture. A perspective was offered that adult modelers will continue in strong enough numbers to sustain the hobby. I suspect that for nearly all adult modelers, the "seed" was planted in their youth and they are continuing or returning to the modeling hobby as a result of that. Today's youth don't build models, and therefore won't as adults either IMHO.
Every generation generally considers their "good old days" as superior to "improved" modern times, and I suppose that for me this topic is another example. The argument can be made that the gaming and computer technology-driven hobbies of today's youth make them quick-thinking tremendous multitaskers. I can only speak from my own experience. The valuable skills and traits that I acquired building models helped define who I became as an adult. As we know, models never lie. If you did a rushed, slipshod job then your final product clearly reflected that. If you worked carefully, with proper planning and attention to detail, the result was a model you were very proud of and landed in the Place Of Honor on your display shelf.
I assume many of you also see this correlation between modeling and a successful career and adult life? Modeling taught me to be a meticulous planner, and that skill has served me very well in my career and making big life decisions. Modeling taught me the joy of using your imagination to visualize a final product, and the excitement of working toward that goal. Modeling taught me the importance of attention to detail, which has also defined me at work and minimized mistakes in general. Modeling taught me problem-solving. The many challenges provided by modeling, as well as the many ways a model can be botched by both a novice and a veteran, provided many opportunities to learn the value of maintaining calm and thinking outside the box to find a way to accomplish a goal. Modeling taught me that if you take pride in your work and put in time and effort, the result will give you pride and satisfaction. Modeling taught me to work with my hands. Modeling gave me perspective and patience. I remember receiving about 5 models for my birthday once. Instead of taking the time to build each one properly, in my rush of excitement I attacked them and some beautiful kits ended up sloppy junk that I was ashamed of. Never happened again.
Maybe some new hobbies provide a lot of these lessons, but I'd have to be convinced. I've done a lot of successful large renovations to my home with little previous experience, and restored a vintage snowmobile with no previous experience. Much of the ability to study, learn, plan, and accomplish these things was acquired from modeling. It seems that far fewer youth interested in working with their hands and therefore unable to accomplish stuff like this and enjoy the satisfaction of doing so. The focus now is more instant gratification than long-term projects. I'm not bashing on today's youth, and I know there remain brilliant young minds out there. It just seems unfortunate to me that a unique tool like modeling, which develops those minds and shows them what they are capable of, is apparently being lost.
Regarding today's youth: Attention Deficit Disorder is often discussed. Most youth now spend countless hours on video games, computers, iPhones, etc, and become accustomed to the rapid pace turn on/turn off control of their world. This does not appear to create students who can focus and absorb material presented by a teacher over a 40" class period. A young person involved in modeling is more likely to develop the ability to stay focused and therefore more likely to be productive in the classroom.
I'm not by any means brilliant or a huge success story, but do know that modeling played a large role providing the foundation for many positive things I've accomplished in my career and life.
I hope that companies depending on the modeling hobby find a way to salvage or renew interest by youth. As discussed in many of the replies, the first hurdle is to make modeling affordable for a parent who wants to share modeling by introducing the hobby to their child. If the modeling manufacturers and retailers recognize that their future possibly depends on meeting this challenge, they need to address this now before the next generation of parents are not interested.
Sorry for the long post, but I guess that covers my perspective.