Micro Engineering is Sold

[rodsup9000]

 Just got a email form them.

Ron Rands and Jack, Reece, Caleb & Jon Dwiggins are pleased to announce the purchase of the assets, intellectual property, and inventory of Micro Engineering Inc. by Warbonnet Enterprises L.L.C. of Macon Mo. 
 
 The company will operate under the name of Micro Engineering Company and will continue to offer the complete line of Micro Engineering products. New products will be added to the company catalogue in the near future.
 
 Jack Dwiggins, Operations Manager, said “We look forward to continuing to offer high quality, American Made, track and turnout products as well as bridge and building kits to our model railroad clients and business partners.”
 
 Ron Rands said, “My Daughter Donna and myself could not be more pleased with the purchase by the Dwiggins family. In our dealings with Jon and his family over the last several months, it has become obvious they possess the energy and ability to continue Micro’s success. I know Micro Engineering customers will find them very friendly and easy to work with. My father, Bob Rands, would be delighted that the Dwiggins family is purchasing the company he started in 1964 and Donna and I are thrilled to see my father’s legacy continue. We would like to thank all of our customers and friends over the last 58 years for your business and friendship.”
 
 The company address, phone numbers and website will remain unchanged.
 
 Micro Engineering Company
 1120 Eagle Road, Fenton, MO 63026
 Voice: 636-349-1112
 Fax: 636-349-1180
 www.microengineering.com
 info@microengineering.com

[Tristan Ashcroft]

Well this seems to be about the best possible outcome.  So far, so good.

[C855B]

This is conflicting information, which concerns me greatly. As documented in a post from early this morning, "Warbonnet Enterprises" made a proposal to the city council in their home town of Macon, MO, for a $150K loan (low-cost? forgivable?), which was approved, all based on their relocating the business there, 170 miles away from ME's current location. Yet here they're saying they're not moving the business.

As a former city commissioner, I've seen this sort of BS manipulation of small-town governments before. They need to get their story straight. Which is it?

[Rivet Miscounter]

I'm thinking that just because they bought the business and got the loan, that doesn't mean they're moving this weekend.

Likely need time to build a new structure if Macon is just a "wide spot in the road".   And I'm guessing moving a manufacturing plant isn't easy or cheap or instantaneous.

So yeah, address will stay the same for the near future.

[oakcreekco]

https://www.centralmoinfo.com/warbonnet-enterprises-receives-loan-approval-from-macon-city-council/

[C855B]

I'm thinking that just because they bought the business and got the loan, that doesn't mean they're moving this weekend. ...

OK, granted. But they're not building anything in Macon, that's for sure. Like all small-region commerce centers here in Flyover, I know firsthand there are numerous empty buildings in the town, having been through there two months ago. That said, $150K is in the ballpark of what it takes to clean up and update long-vacant small industrial structures in these settings. So, you're right, the new owners are likely to operate in situ in Fenton until the new-to-them facility is ready to receive equipment or whatever.

But that brings-up concerns in my own (dismissed) consideration of possibly buying ME to do a similar thing in our own little rural city - the time to make the transition chewing through cash reserves. Paying for duplicate staff, and then the fraught situation of soon-to-lose-their-jobs staffers training the noobs. That's a formula for pushing out cutover dates into failure territory. On the plus side, a light-industrial biz like ME will definitely find a more favorable wage environment in a small rural community versus the big-city overhead that ME had to meet to run the business.

Since I am a big user of ME products I am certainly hoping for the best for all involved, and beyond that hope, wishing dearly for enough reserves to grow the product lines. However, there are, to me as an investor with specific knowledge of the operating environments, multiple red flags that leave me gritting my teeth about the long term.

[rodsup9000]

  One of our local modelers (very reliable source) knows the family that bought ME. Talking to him today, he was told that they will be moving all the equipment and remaining stock to Macon Mo, hopefully by the end of the year. They have already ordered several new machines for making new products and all the present products faster and more automated. They also want to expand their turnout line across all the scales they make track for. They will be adding new products as soon as they get all the present and back-orders filled. He really didn't expand on what the new products will be though.


 Now with that being said, I would have to guess that "expanding their turnout line" would mean that maybe that they will be making more for N scale than just the #6's they now have.
 
 

[Tristan Ashcroft]

  They also want to expand their turnout line across all the scales they make track for. They will be adding new products as soon as they get all the present and back-orders filled.

Did you happen to get a sense that the new ME folks will consider reasonable suggestions for new products?  Or if there would be a preferred method to convey those suggestions?  (asking for me...  I want curvable #8 turnouts to replace those wonderful Shinohara switches of days of yore.  )

[nkalanaga]

I work in a factory that has multiple injection molding machines, for making auto parts, from the size of an HO tankcar body, to intake manifolds.  Moving an IM machine is NOT easy, as those things are very heavy, even with the tool removed.  Ours are the size of a fair-sized RV, and probably heavier.  They were "floated" in on air cushions, and all of the cracks, joints, bolt holes, and any other gaps in the (old) concrete floors had to be sealed.  Otherwise the air leaks out!

[mu26aeh]

Bringing back an old thread, got an email from Mainline Hobby today that included the following at the bottom regarding ME

" Talked with the new owner of this outstanding company yesterday, and things sound like they are starting to turn around on supply of their products. We have #6 turnouts, assorted flex track , and bridge kits that we have been out of for a little while, on the way to us. Hopefully by the first of November these items will be IN STOCK HERE!
Ladder turnouts are hopefully to be restocked in December. If you are looking for any of these items, please let us know and we will be sure you receive them as soon as available.
No word on N scale items,, but I'm sure they are not far behind. "

[mike_lawyer]

Bringing back an old thread, got an email from Mainline Hobby today that included the following at the bottom regarding ME

" Talked with the new owner of this outstanding company yesterday, and things sound like they are starting to turn around on supply of their products. We have #6 turnouts, assorted flex track , and bridge kits that we have been out of for a little while, on the way to us. Hopefully by the first of November these items will be IN STOCK HERE!
Ladder turnouts are hopefully to be restocked in December. If you are looking for any of these items, please let us know and we will be sure you receive them as soon as available.
No word on N scale items,, but I'm sure they are not far behind. "

I am in dire need of an ME 80 foot deck girder bridge kit.  Let me know when Mainline gets them in stock and I will order from them.

Mike

[OldEastRR]

Bringing back an old thread, got an email from Mainline Hobby today that included the following at the bottom regarding ME

" Talked with the new owner of this outstanding company yesterday, and things sound like they are starting to turn around on supply of their products. We have #6 turnouts, assorted flex track , and bridge kits that we have been out of for a little while, on the way to us. Hopefully by the first of November these items will be IN STOCK HERE!
Ladder turnouts are hopefully to be restocked in December. If you are looking for any of these items, please let us know and we will be sure you receive them as soon as available.
No word on N scale items,, but I'm sure they are not far behind. "

Or we'll never see any N scale stuff.

[wazzou]

I bet you're fun at parties.   

[mu26aeh]

The shop owner models in HO, and like the rest of the industry much of our business is HO, so that is first and foremost on his mind.  I'm sure he didn't have a lot of time scheduled out to play 50 questions with them, nor did ME have time to do the same.  Let's give em a break and see what pans out.... 

[reinhardtjh]

Of course HO comes first, it's their bread and butter.  The N scale will come as I'm sure it's a non-trivial amount of sales.  I just hope they fix the tapering in the tie strips - the 36" long flex uses 3 12" tie strips and a lot of what I've bought in the last 5 years has a noticeable taper from one end to the other on each strip which shows up in a patter on the full piece.  Sanding them lightly tends to fix it, but not having it at all would be nice.