More than 300 exhibitors were on hand this month at the 24th annual iHobby Expo, the combined trade and consumer show that offers an inside look at the very latest releases in die-cast collectibles, model railroads and aircraft, slot cars, remote control vehicles, rocketry, robotics, military toys, wood/plastic model kits, games and more to many thousands of consumers, retailers and distributors across 200,000 square feet of display space.

The sold-out show—held at the Donald E. Stephens Convention Center in Rosemont, Ill.—is known for its hands-on experiences that appeal to consumers; this year, the Oct. 16-19 show boasted multiple “Make & Take” areas for plastics, airplanes, rocketry and trains plus demonstrations, races and competitions. Other highlights were a State of the Industry panel discussion featuring experts from all the key hobby sectors, numerous manufacturer-sponsored workshops and business seminars and a dealer networking mixer hosted by the National Retail Hobby Stores Association.

But when all is said and done, does a successful industry show, featuring a steady stream of buyers and the enthusiasm of thousands of consumers, signal continued strength for the hobby space? Manufacturers and retailers who spoke with Playthings say, undoubtedly, yes. Despite a flailing economy this year and significantly higher fuel prices—which have combined to dampen collector interest in some key product categories—sales in other areas remain steady, they say.

In part, this is because the hobby business typically is somewhat immune to these kinds of economic issues in a way that's similar to the market for luxury goods, Keith Strickland, a spokesman for Cranbury, N.J.-based Carrera of America, tells Playthings.

Michael Brezette, vice president of marketing for Revell, Elk Grove Village, Ill., agrees. The hobby market “historically is recession proof,” he says. “We're testing that theory a lot now, but [it] is quite strong, especially in model kits.”

Michael Myers, owner of a HobbyTown USA in Murfreesboro, Tenn., also recognizes the trend. “I think on the model side we're seeing a resurgence of interest to some degree. We have adult customers in their thirties and we also have families, parents who come in with their children. But in most of those categories for us, model sales are up. I think a number of the big box stores exiting that market has helped, certainly.”

Brezette says, “In a bad economy generally people who are enthused with the hobby stay home. [Sales] are not going up a lot, but they're strong now. In the fourth quarter, we would expect our sales to hold steady, barring [our economy] falling off a cliff.”

It's a sentiment also shared by Michael Jimenez, creative services manager for Jada Toy, City of Industry, Calif., “The hobby market is good right now,” he tells Playthings, adding that for Jada, “It's a matter of making sure you have enough items that are not too expensive but are also really cool, that won't break the bank. We're creating cooler, smaller toys, really getting into what the kids want—and that are pocket-book friendly—and bringing them to market.”

Strategies like these—developing the right product offerings for those consumers still actively engaged with the category, whether they are kids, new grandparents or regular adult collectors—have been key to keeping business steady. It's all about carving out market share, manufacturers say.

Adds Jimenez, “We're sticking to our guns. Our main thing is die-cast and collectibles and we're confident in what we have. It's a steady business for us.”

This is also true for Russ Burke, owner of Milezone.com, a Michigan City, Ill.-based online store that has specialized in die-cast collectible vehicles for nearly a decade. “I've seen a slight decrease in sales, but generally this has been our best year yet,” Burke says. “Knock on wood, we've been so far hanging on pretty good.” Burke says his site generates 2.5 million hits a month; repeat business accounts for a lot of those hits, and his steady sales rely on these customers, to which he offers services such as the ability to preorder hot items, and a Buy It Later program, which lets customers put items on hold.

As for Revell, “You've got to keep hustling,” Brezette says, noting that the company has been successful recently with its lower-priced items, especially in toy stores that carry a combination of toy and hobby products. In these areas, especially, “Our retail business is very, very strong,” Brezette says. “Anything below the $20 mark is good, so we're emphasizing our snap kits more. We think they attract more kids—and because retailers are reluctant to carry all the glue and paint of more traditional kits, snap kits are more compatible with the way retailers want to go. They're taking the toy department toward a younger audience, and snap kits fit into that more.”

Model railroading is also seeing some strength, according to HobbyTown's Myers. “Our train business is up 50 percent over last year. Model railroading has been doing very well for us,” he says. “I think on the adult side it is retirees who are getting back into a hobby they had years ago or are discovering a new hobby. On the family side, I think it's people who really want to disconnect from the Best Buy [video game] product offerings and get their kids involved with some hands-on activities.”

However, even though foot traffic is up, customers are spending less these days, Myers says. “My transaction count is up significantly, but unfortunately, the dollar amount per transaction is down. We are seeing people spending time looking and shopping, and buying less expensive things.”

Thus, hobby retailers are remaining guarded about the future of their businesses. Going forward, supplies could face numerous issues—new testing requirements, higher shipping and production costs and the possibility of decreased manufacturing capacity in China that could delay or halt production—which present a host of challenges the industry must overcome to keep existing fans and attract new ones.

Adds Myers, “For 2009, I would have a very cautious and guarded outlook. But I wouldn't be negative—and I don't think you can be. I think you just show up every day and do your best.”