Built to last

Across the board, hobby manufacturers say they're holding their own and many are even seeing increases in sales revenue, as is the case with tabletop war gaming company, Games Workshop's 19% revenue jump in the last year alone.

Kathleen Racine, the executive director of RCHTA (Remote Control Hobby Trade Association) says, "The market is excellent right now. It's a very good time in the RC industry," and her sentiments are echoed by manufacturers in other categories.

Alson Smith, president of model airplane manufacturer, Guillow, says, "We usually do better in a recession. When the economy is hot, people are running around throwing money at all kinds of things, whereas in a recession, they become more reserved in how they spend their hard-earned cash; they want quality and good value. While hobbies can be expensive, they're cheap compared to a $5000 family vacation."

"The growing variety and improving quality of ready-to-fly planes are sparking new interest in RC planes," says Larry King, vice president of marketing at plane company Sig, who has seen increases in sales over the last year.

Similarly, LGB COO Alan Hess reports that the model railroad manufacturer is up 5 percent from last year. "Six years ago we only had two competitors," he says. "Now we have nine in our scale!"

Mike Bergman, a spokesperson for die-cast manufacturer Maisto says, "Overall our sales have been very good and our newly introduced die-cast kits have been doing phenomenally, mainly because people remain passionate about their hobbies, no matter what the market is doing."

The hobby market usually splits itself between kids and adults, although there is some crossover. So, while LGB makes sturdy trains for the little ones, the company's authentic scale models with details like 24-carat gold window trim and hand rails that can sell for anywhere between $160 and $5000 are, unsurprisingly, catered more towards adults.

Likewise, RC planes and cars selling in Toys R Us for $20 and up are intended for kids to bash around, but you'll only find the "serious" RC vehicles in specialty hobby stores, starting at around $100 to $500.

Märklin's president, Fred Gates, says that while the model train industry sees tremendous sales in kid's ranges and wooden train lines such as Thomas the Tank Engine and Brio, those sales don't usually translate into the electric trains, where the core market is adult hobbyists between the ages of 45 and 65. "We usually lose those kids when they hit adolescence and only get them back in adulthood."

Jeremy Vetock, promotions manager for Games Workshop, agrees, "Like model trains, wargames are eye-catching and exciting, and we draw in a lot of kids. Then they get involved in cars and the opposite sex and other things that get you into trouble, only to return in their mid-twenties."

In some ways, this can work out rather well as it lends certain hobbies a nostalgic factor which may lure adults back. "The heyday of electric trains was in the '50s," Gates says, "And it's been a trickle-down type of hobby across the generations since then. Nostalgia is a big influence in bringing people into this, especially when grandparents buy presents for kids who are more driven by what's on TV."

So what's the appeal? Many manufacturers believe that people start collecting die-cast cars or flying airplanes to live vicariously through their hobby. So while they may not be able to afford a Ferrari or are unable to get their hands on a real steam engine, they can play with a replica. As Kathleen Racine says, "It appeals to the dreamer in all of us."

Larry King says, "Personally, I believe we're selling a fantasy. We're giving the modeler control of a high-tech nitro-powered airplane with which they can perform aerobatics and stunts and just fly, experiencing all the thrill without spending $100,000 on a full size airplane."

Mike Bergman believes the appeal of Maisto's die-cast collectibles lies "simply in the love of cars and Americana, the sense of freedom and wanting to have those vehicles you really can't afford or the ones you feel a sense of nostalgia for."

And hobbies can be addictive. Gates says, "People who get into model railroading statistically stay in it for 15 to 20 years," while Bburago's U.S. representative Mike Obraitis believes that the die-cast hobby feeds itself. "Once you start, it's difficult to stop. I'd compare it to people who get their first tattoo, who immediately want another one."

On the RC-side, Kent Clausen, director of marketing at HPI Racing, says, "RC cars are not just something you buy and use for three months. Studies have shown that people who get involved tend to stay with it for several years."

At least part of the reason is that hobbies become more absorbing as you become more involved. "There's really no room to get bored," King says. "The great thing about planes is that you can start with something very simple to learn the basics of flight and then move up into more sophisticated models in all categories, whether freeflight, control line or remote control." Likewise, Clausen says beginners who stay in RC cars graduate to playing around with vehicle dynamics and customizing their vehicles to perform exactly the way they want them to.

While ready-to-runs, those vehicles that are good-to-go straight out of the box, are increasing in popularity, according to RHCTA, the high-end race cars have to be built from scratch in order to stand a chance in competition. The process of building can be rewarding in itself, however.

Kathleen Racine says, "The building process involves manual dexterity and provides a very definite reward. There is tremendous pleasure in constructing something successfully and then seeing it perform well whether driving or flying or sailing. It's fun and exciting."

That flexing of creative muscle and the sense of accomplishment go a way towards explaining the popularity of model-building, even when you don't get to play with the finished product. In the die-cast market, several manufacturers have started making kits of their collectibles. Mike Obraitis says, "This is the first year Bburago has done kits under our own branding and we've been surprised at the results. We're struggling just to meet demand! Collectors get excited about anything new and they're responding really well to the kits, I think because die cast has a richer feel than plastic."

Mike Bergman believes that plastic also requires more skill, something people don't have the patience for in our "quick-fix" society. "Die-cast provides almost instant gratification and the kits have more value once they're completed as collectibles with moving parts—which plastic can't sustain. At the same time, you still get the benefit of the feeling of accomplishment in having built something yourself."

For those who don't have the option of building their hobby, there's always customization. In model railroads it's called kit bashing, where people redo the paint jobs, perhaps to feature the family name instead of the brand; die-cast kits and ready-to-run RCs come with decals and wargaming miniatures are converted by enthusiastic players who sometimes surprise the developers with their ingenuity.

"Some people really get into it; painting models, building crazy detailed scenes set in the Arctic or based on jungle Aztec designs," Vetock says. "Our best players come up with stuff that impresses the designers, whether its orcs painted up like Zulus or wild conversions where someone has rebuilt a space marine's head or sculpted a tentacle to replace an arm. Some people go all out and build remote control tanks with detailed interiors. They're enthusiastically, fantastically nutty. We love it."

Of course, the other reason hobbies are drawing more people into the fold is because they're social occasions, whether it's the family laying out a gorgeous brass garden railway system, kids reconstructing naval battles with paintball in the pool or high flyers joining a national club of like-minded enthusiasts.

"It's not a solo activity," explains Marsha Cannonie, spokeswoman for Nikko, an RC car, boat and submarine company. "You get off your rear end and out of the house, fooling around with friends, relating to other kids and having fun."

Manufacturers and retailers are not slow to take advantage of that social aspect either. Specialist clubs are ready-made marketing opportunities that tap right into core customers and many manufacturers will not only rely on club members for feedback about product but also organize special events in conjunction with clubs. Games Workshop, for example runs a couple of elaborate national Grand Tournaments a year, but also relies on so-called Rogue Trader tournaments hosted by clubs and specialty stores to keep interest in the hobby spreading.

Similarly, while LGB runs advertisements in high-profile magazines from in-flight publications to Forbes, the company also relies on train shows and occasionally sends out discount coupons to all its customers who have sent in warranty cards. Alan Hess says, "The last time we did that, for Father's Day, we had dozens of retailers phoning us to say thank you for all the additional customers it brought in." Fellow model train company MTH tours with a special 50-foot trailer that folds out to reveal an intricate train set-up that draws in both kids and adults alike.

H & R Trains, a 10,000-square-foot specialty store in the Tampa-St Petersburg-Clearwater area, makes use of heavy advertising and special mailings as well as train shows throughout spring and fall, where collectors bring in their sets and set them up under tents. Alice Morris, one of the owners says, "Manufacturers come in to show off new products and we hold classes, too. It's really helped to make the business less seasonal and more of a year-round affair."

It's the hobby social scene that also generates the buzz about new products, and, as Fred Gates of Märklin says, "New items drive the market." On the toy side of the hobby spectrum, retailers are excited about Bowen Hill's remote control flying saucer, the air-pressure-powered Stomp-Rocket from D & L Co., Spin Master's kid-friendly RC E-Charger planes and Nikko's Bass boat and trailer that comes with either a F150 Harley Davidson truck, a Hummer H2 or a Jeep Monster, each with individual controls.

On the more upscale and expensive hobby side, new products that manufacturers predict will be hot for fall include LGB's new high-tech Makaido locomotive. "It's the largest engine we've built with the most technological advances including digital controls, digital sounds, a circuit board and a multi-train system which looks like a mousepad with a dial on it that allows you to manipulate up to eight trains on one track and can be hooked into your computer for additional control."

Licenses are expected to do well, too, whether it's Lord of the Rings miniatures from Games Workshop to Bburago's new Mercedes Benz 1928 SSK and 1931 SSKL die-cast kits that have already proved popular as collectibles. Then there are one-of-a-kinds such as Racing Champions/ ERTL's Ala Kart pick-up truck, designed by George Barris, most famous for TV vehicles like the Batmobile and the Munsters' Koach.

New technology constantly pushes the limits of the hobby industry, making products better, faster and easier to use and assemble, drawing new enthusiasts to the market like flies to sugar.

HPI's Kent Clausen says, "The strength of the RC industry is not only that there is a lot of healthy competition between racers, but among manufacturers too, which drives us all to excel." His words hold true for the rest of the hobby industry, too.

While the initial outlay may seem expensive for some, the long term benefits of being involved in a hobby people are passionate about—and usually end up staying in for the long term—far outweigh the initial price tag. Hobbies are on the up and up, or, as Jean Seaborg, manager of specialty store, Gator Games & Hobbies in San Mateo, Calif., says, "Everything looks bright and hopeful."