Games Workshop expansion

[sairence]

I doubt this will impact the start of 11th if it's currently planned to open in 2026. Which, going by GWs 3 year cycle would be the year 11th is meant to drop. Since the starter boxes and whatever else they want to release has to be ready to go by then, any production capacity that can't be guaranteed with serious lead time isn't going to be relevant. So even if this new place is ready on time (and let's be honest, who thinks that?)...

 

But for whatever post-11th ed launch releases, this'll be good. :)

[N1SB]

On 6/16/2024 at 7:13 PM, Malakithe said:

Can't wait for more price increases to cover the costs of construction 

 

Thanks for bringing this up, I actually forgot to bring it up when GW warned of price increases last half-year report.

 

GW in the past, historically, traditionally, does NOT increase prices based on equipment.  It raises prices based on RUNNING said equipment.

 

It's in the byzantine accounting format that not only GW, but the world uses.  They look at their Gross Profit Margin.

 

What counts for this?  It includes labour (like the jobs created), materials (plastic, from petroleum), the electricity bill for Factory 4, etc.

 

What doesn't count for this?  Building the factory itself, the plastic mold injection machines, not even the molds.  Why not?  Those are Assets that you can continuously re-use, like even an old mold for a Legends model they'll stuff somewhere to pull out for some Made To Order later on.  They're just accounted for differently.

 

Price increases suck.  But within that suckage, GW has an aberrant code of honour, like the Punisher or The Professional (either the Jean Reno version or the John Woo version).  You probably don't agree with their code, but GW sticks by it, they're like "no women no keeds."  It's like how Mafia hitmen are really nice to their mums.

 

The best tell for when GW increases its prices?  Our Brothers who drive in the UK can tell better than Wall Street: see when petrol prices increase in the UK.

 

UPDATE/CORRECTION - forget what I said about petrol prices; it's just the electric bills.  I talked to my friend Timperial Guard who actually worked in a plastic mold injection company.  Not only did they keep their machines running 24/7, it's the constant heating plastic to 200 to 400 degrees C to pour into the molds.  It's summer now, you know how you're kinda thinking about your electric bill for air conditioning?  Like should I just turn it on at night to save money?  Imagine the reverse of that, heating plastic constantly, and you have no choice.

Edited July 2 by N1SB

[darkhorse0607]

I wonder how much, if at all, the timeline of the new plant is meant to coincide with whatever show Amazon is producing. I can't imagine they haven't seen the current production/inventory shortages and not forward thought to the influx of new customers thanks to whatever show ends up coming out.

 

I don't think that will help build a strong increase in profits if the mass of people trying to get into the hobby cannot buy anything

Edited June 16 by darkhorse0607

[Captain Idaho]

7 hours ago, N1SB said:

The best tell for when GW increases its prices?  Our Brothers who drive in the UK can tell better than Wall Street: see when petrol prices increase in the UK.

 

I'm a little out of my depth regarding the construction costs and which elements GW chooses to base their prices on, but I can confirm the fuel/diesel prices have been stable and even came down the past 3 months and beyond, yet GW upped their prices.

 

So I must confess to being slightly confused but wanting more information, if you'll indulge my questions.

 

What is the pattern of GW price increases relating to construction of products? Is there a pattern? Profit margin is attached keeping share holders happy right, but that's been going up steadily so is it even related to construction costs?

 

Surely a factory construction is perhaps the reason for the price rises we've seen? They haven't BLAMED it on said plans for new factory, but that seems the logical accrument of capitol prior to construction and fits?

 

(And I apologise if this subject is dry to some!)

Edited June 16 by Captain Idaho

[N1SB]

I'll answer the questions 1st.

 

On 6/17/2024 at 5:40 AM, Captain Idaho said:

What is the pattern of GW price increases relating to construction of products? Is there a pattern? Profit margin is attached keeping share holders happy right, but that's been going up steadily so is it even related to construction costs?

 

Surely a factory construction is perhaps the reason for the price rises we've seen? They haven't BLAMED it on said plans for new factory, but that seems the logical accrument of capitol prior to construction and fits?

 

(And I apologise if this subject is dry to some!)

 

 

GW's factories are in their annual reports as "Property, plant and equipment."  Since AoS General's Handbook, they've been building up gradually.

 

 

Gross Profit Margin is like how much profit they make on their average good.  GW wants it at 70%, which is high, but it just fluctuates around there.

 

There's no pattern as they're 2 separate things.  GW isn't passing on the costs of new factories by selling minis for more, but by selling more minis.

 

It's not a dry question, it's a philosophical one.  CAPITALism isn't about free trade or working by the sweat of your brow, as those things existed before it, it's about CAPITAL investments...like a factory.  Capitalism was like an arrangement from the Industrial Revolution where factories could make things that were unfeasible before.

 

The factory is as expensive thing, so an entrepreneur will go to a capitalist to front him the huge amount of money, of capital, to build it.  That capitalist owns a part, or a share, of that factory, in exchange for a cut of whatever that factory makes from then on.  It is by this arrangement the capitalist has any right to the value it generates.

 

So the capitalist would say to you, "This is MY factory.  YOU do NOT pay for this, because if you did, it'd be YOUR factory.  This is MY stake."

 

I see where you're coming from.  You see money, money from goods, money for factories.  It's not actually about money.  It's about ownership.

 

(The best argument against capitalism I heard came from an ultra-capitalist, the ex-chairman of a major world stock exchange, who pointed out it's not about factories anymore, it's about some smart kid with a cheap computer who'll write an Abominable Intelligence to take over the world.  His brain is the factory, only he owns that.)

 

On 6/17/2024 at 5:40 AM, Captain Idaho said:

 

I'm a little out of my depth regarding the construction costs and which elements GW chooses to base their prices on, but I can confirm the fuel/diesel prices have been stable and even came down the past 3 months and beyond, yet GW upped their prices.

 

So I must confess to being slightly confused but wanting more information, if you'll indulge my questions.

 

I think you're right, energy costs have stabalised recently from the energy crisis around Liz Truss's time, but I read forecasts of a surge starting in autumn.

 

It's not just about heating costs, it's about continued wars in regions that sell a lot of energy.  Petrol prices are like the canary in the coal mine, that's all.

 

When I read about GW's pricing update, it lined up with other things I've been seeing, that's why I didn't comment.  Thankfully it's not about the factories.

(Y'know what.  I don't complain about prices, because whenever I'm about to, my mind goes to these wars.  Minis seem a small thing compared to that.)

Edited June 18 by N1SB

[Craig]

Resurrecting a dead thread as there's another article with a bit more info for anyone that's interested. https://www-nottinghampost-com.cdn.ampproject.org/v/s/www.nottinghampost.com/news/nottingham-news/games-workshop-spend-9m-brand-9460973.amp?amp_gsa=1&amp_js_v=a9&usqp=mq331AQGsAEggAID#amp_tf=From %1%24s&aoh=17229408961140&csi=0&referrer=https%3A%2F%2Fwww.google.com&ampshare=https%3A%2F%2Fwww.nottinghampost.com%2Fnews%2Fnottingham-news%2Fgames-workshop-spend-9m-brand-9460973

[DarkMark]

Aiming for spring of 2026? That's a long way off, and I've binned most of my idea projects as the constant out of stock situation is absurd. 

[brother_b]

3 minutes ago, DarkMark said:

Aiming for spring of 2026? That's a long way off, and I've binned most of my idea projects as the constant out of stock situation is absurd. 

I’ve been looking for a couple of Bretonnian models that are never available really a downer when I’ve got ideas for any army.

For 40K I’ve got enough right now but know the feeling about trying to finish or start a project with key minis missing.

[Joe]

12 minutes ago, DarkMark said:

Aiming for spring of 2026? That's a long way off, and I've binned most of my idea projects as the constant out of stock situation is absurd. 

 

At the rate construction goes in the UK it'll probably be closer to 2030. 

[The Praetorian of Inwit]

Honestly I'd be surprised if they got it sorted for 2026. Given how things work in the UK I'd have said 2027/28. 

 

I'm still expecting the Council to be obstinate about it as well. 

 

So the bad stock situation is with us for a good few years yet it seems. 

[Xenith]

On 8/6/2024 at 3:46 PM, DarkMark said:

Aiming for spring of 2026? That's a long way off, and I've binned most of my idea projects as the constant out of stock situation is absurd. 

 

It's really not. Spring 2026 is 19 months away. Leviathan was launched 15 months ago, and it seems like yesterday. In business, 18 months pass by in the blink of an eye. 

*not that it helps with current issues. Maybe write to the council saying you wish to give GW money which the council is preventing?

[DarkMark]

Writing a strong-worded letter of complaint would be very old skool. .

 

I dip in and out of the hobby these days, and treat GW like an old flaky friend. Its best for my sanity and wallet, tbh.  

[Craig]

Another article regarding the site of the expansion and timeline. https://www-nottinghampost-com.cdn.ampproject.org/v/s/www.nottinghampost.com/news/nottingham-news/new-warhammer-factory-next-step-9482003.amp?amp_gsa=1&amp_js_v=a9&usqp=mq331AQGsAEggAID#amp_tf=From %1%24s&aoh=17238383302561&csi=0&referrer=https%3A%2F%2Fwww.google.com&ampshare=https%3A%2F%2Fwww.nottinghampost.com%2Fnews%2Fnottingham-news%2Fnew-warhammer-factory-next-step-9482003

[Craig]

https://www.nottinghampost.com/news/nottingham-news/warhammer-firm-games-workshop-reveals-9636117?int_source=amp_continue_reading&int_medium=amp&int_campaign=continue_reading_button#amp-readmore-target 

Looks like plans for another factory expansion, this time for a paint factory, have been submitted.

[phandaal]

21 minutes ago, Craig said:

https://www.nottinghampost.com/news/nottingham-news/warhammer-firm-games-workshop-reveals-9636117?int_source=amp_continue_reading&int_medium=amp&int_campaign=continue_reading_button#amp-readmore-target 

Looks like plans for another factory expansion, this time for a paint factory, have been submitted.

 

Maybe the source of those rumored Citadel dropper bottle paints?

[Stitch5000]

Good old Nottingham Post website, rendered unreadable by pop-ups and MPU ad positions! (Makes all of GW’s websites look positively fantastic.) 

 

Going back a few steps, GW will not increase product costs based on the cost of investment in assets because assets themselves are profitable (otherwise they wouldn’t invest in them).

 

They will increase prices if the cost of operating those assets profitably increases. 

Edited October 18 by Stitch5000

[Craig]

https://www.nottinghampost.com/news/business/warhammer-maker-games-workshop-reveals-9779842?int_source=amp_continue_reading&int_medium=amp&int_campaign=continue_reading_button#amp-readmore-target

 

GW has applied for permission to build extra car parking. Not greatly interesting but is further investment in their Nottingham factory and facilities.

[N1SB]

Brother Craig, thanks for keeping an eye on this.

 

It's very relevant.  They employed a bunch more people already like for the design teams, and I know this because they mentioned it in an annual report to explain why their operating expenses have gone up (just more salaries to pay), but yes, there's another reason about GW's overall expansion.

 

It's because we were joking about how they might have to use their parking lot for a new factory.  It's right by their existing 3 factories, just add a new wing, you guys can park on the grass or something.  I thought that was hilarious.

 

But more than that, it's like GW is working towards the future.  Before 8th ed, GW was like in a very "managed decline", these continued expansions says, "we're growing."

[templargdt]

Any talk of a gw factory not in the UK?  Energy costs there have to absurd compared to places like the Southern US.

[FoursCompany]

44 minutes ago, templargdt said:

Any talk of a gw factory not in the UK?  Energy costs there have to absurd compared to places like the Southern US.

I don’t have the evidence to back this, but I’m fairly certain I read somewhere that GW will never offshore their production of minis. 

[sairence]

9 minutes ago, templargdt said:

Any talk of a gw factory not in the UK?  Energy costs there have to absurd compared to places like the Southern US.

I would imagine the initial cost would be pretty high. Not just for the actual facilities, but duplicating all the molds. Which I imagine is a massive project by itself.

[Dark Shepherd]

18 hours ago, templargdt said:

Any talk of a gw factory not in the UK?  Energy costs there have to absurd compared to places like the Southern US.

Theyre the highest in (geographic) Europe

 

They are very protective/proud of their manufacturing quality so I think it would be a very long time before theyd consider another factory site, and even then itd be near Nottingham probably. And probably just do the simpler stuff eg paint pots, bases, maybe terrain (again)

[Firedrake Cordova]

On 12/13/2024 at 4:25 PM, templargdt said:

Any talk of a gw factory not in the UK? 

I seem to remember hearing that they did set up a factory in the US for the American market for a bit, but that it was quite an expensive venture, with one of the moulds getting wrecked in transit - that might have put them off?

Edited December 16 by Firedrake Cordova

[Robbienw]

They used to have a factory in Memphis where their US distribution hub and HQ still is.  Can't remember exactly when it closed. 

 

I assume they stopped manufacturing there because of the move to plastic and not wanting to pay to duplicate every plastic mold they make to produce there.

[Joe]

It was explained to me in passing by a mutual that the issues they ran into with the US factory were related to culture clashes (UK management vs. US management), where the latter were repeatedly over-producing stock and clogging up the warehouses with products that weren't shifting.