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Modelship Dockyard - New Kit [Modelship Dockyard] PoF H.M.S. Enterprize 1774, the 1/48 version!

AllanKP69 said:
Maybe it's time to make more kits in other countries including the US or Canada for the North American markets. Assuming there are no such tarriff increases in other countries I will just work with just US numbers. Did a little research and found the following:

Cost of labor for a ship model kit is from 20% to 35% of the total cost.
Cost of labor in China is from $3.00 to $5.05 per hour. For this example I am using $4.
IF these figures are accurate, (a big IF) for a $500 kit at pre tariff increases, labor costs are anywhere from about $100 to $175 Worst case, 35% X $500 =$175 total labor.
$175/$4 = about 44 hours Using a minimum wage in the US of $15 --- $15 X 44= $660. Non-labor costs remain the same- 65% of $500 = $325. Total cost would be $325+$660 = $985
With a tariff of 125%, the $500 kit would increase $625 to $1125.
Price for kits made "locally" could be less than importing, thus the whole point of the tariffs.

I am curious to know the true hourly wage for kit makers in China to see if this makes sense. Perhaps the wage is on the low end, say $2 or $3. If that is the case, it would still be less expensive to import with the high tariff than making locally.

If skilled labor prices versus minimum wage for the folks making parts come into play, the cost to make kits here would probably not be competitive with China prices even with the tariff.

If anyone has better/more accurate and complete information, that would be great to see.
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That’s a thoughtful effort behind it, Allan. But honestly, making ship model kits in the U.S. is still more of a dream than a practical path right now. With the high cost of labor, design work, precision machining, and premium materials, the price of a locally made kit would skyrocket, far beyond what most hobbyists could justify paying. It’s not just about hourly wages but also overhead, regulations, and economies of scale. Until there's a major shift in demand, affordable production methods, imported kits (not just from China) are still the choice, BTW, tariffs are imposed from other countries like Italy, England, where kits are made.
 
Jim, your points are well taken and if I had to bet money, I would bet you are right. Still would be nice if someone would take a shot but it is as you say, a big investment that most of us would not be willing to make.
Allan
 
AllanKP69 said:
Jim, your points are well taken and if I had to bet money, I would bet you are right. Still would be nice if someone would take a shot but it is as you say, a big investment that most of us would not be willing to make.
Allan
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... We certainly had (?) one kit maker, not too many model varieties, but still made in the USA and not cheap at all. Lately, all his kits have now been sent to be made in the UK. I wonder why?
 
Just finished some online research; apparently as of June 1, import tariff for small packages, formerly $0 for values under $800, is now 90% on ALL packages! My ordering will have to wait for the return of sanity in US-China trade policy!
 
hmcarlin said:
Just finished some online research; apparently as of June 1, import tariff for small packages, formerly $0 for values under $800, is now 90% on ALL packages! My ordering will have to wait for the return of sanity in US-China trade policy!
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I do not understand ,90% of what? The tariff cannot be 90%
 
OMG.. great thread.. Zoly Allan et al, scary for the future of imported kits to US.. I'm holding out right now finishing my OKESA and the Royal Caroline and hoping things calm down and we have an equitable trade policy before I croak(77)
 
AllanKP69 said:
What is their secret? Wish we could get our next generations to keep a tool in their hand instead of a phone every waking hour.
Allan
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I think it's a difference in culture.
The US has become a nation that values efficiency above all else. How quick can this get done and how cheap can it get done.
Where as they still have a large focus on art.
 
In fact, the labor cost of China and the United States is the same. The lower production cost in China is the lower cost of raw material procurement, logistics and equipment, which is only about 40% of that in the United States
Also, there is the design cost. For us, the design cost is almost zero because I design and modify during the gaps in the production process. Regardless of the size and scale of the ship, the design cycle for all products is approximately less than 3 weeks
 
wuxiaomeng said:
In fact, the labor cost of China and the United States is the same.
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That is a surprise for me. I looked a few dozen papers and all of them show over all costs are lower in China but not by as much as I thought before your post. The below chart is indicative of what I have been finding. The chart uses the USA as a base 100 then comparing Germany and China. The US and China are far closer than with other countries such as Germany according to this study.
1749118993556.png
 
The shipping companies in China also say 30% ,they are up to date as that is their daily job and millions of parcels shipped monthly and contact with brokers.
 
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https://freightclear.com/china-usa-tariff-may25/ :

Postal/E-commerce Shipments​

For small packages from China, the EO increases the applicable duty rate to 90% of the value or $75 per package, effective May 2. This will increase again to $150 or 90% on June 1, 2025.
[EO means Executive Order from the President]
 
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N.B.: Shipping companies IN CHINA do not pay the tariff! It falls on the IMporter (customer in our case), regardless of what the White House claims.
 
Hi everyone,
I've been following the recent discussion on tariffs and labor costs with interest. Many of us are passionate about the broader aspects of model shipbuilding, including the economic factors that influence our hobby.

However, I believe it would be beneficial to refocus our conversation on the primary subject of this thread: the Modelship Dockyard POF H.M.S. Enterprize 1774 kit. Sharing experiences, building progress, and insights related to this specific model can provide valuable information for both current and prospective builders.

If there's a strong interest in continuing the discussion on tariffs and manufacturing costs, perhaps we could consider starting a separate thread dedicated to that topic. This way, we can delve deeper into those aspects without diverging from the main focus here.

Looking forward to seeing more updates and shared experiences on the Enterprise build!

Best regards,
 
wuxiaomeng said:
In fact, the labor cost of China and the United States is the same. The lower production cost in China is the lower cost of raw material procurement, logistics and equipment, which is only about 40% of that in the United States
Also, there is the design cost. For us, the design cost is almost zero because I design and modify during the gaps in the production process. Regardless of the size and scale of the ship, the design cycle for all products is approximately less than 3 weeks
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So we can expect a 1/48 Le Fleuron or Prinz Fredericl in three weeks..that's great! hehe...
 
1/48 Le Fleuron has been designed and completed. Four months ago, some Chinese clients started production, and this is their latest progress
Our products are usually first released in the Chinese market, and will only be available in the Western market after 1-2 years when the production documents are stable
1749185798229.jpeg
 
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