Games Workshop unveiled plans for a possible new factory to help meet the demand for their miniatures and rulebooks.
If you’ve been following the hobby recently and trying to get new releases, you may have seen some issues. Basically, everything sells out immediately. So, if you want a new release, you better be near the computer within the first few hours when the pre-order goes live or get to your local store early and hope you can get in on their allocated numbers.
Plus with the recent changes to ordering, stores might not even know 100% how much stock they are getting.
Games Workshop Unveils New Factory Plans
If nothing else, it seems like GW understands the issues, as they talk of another factory opening up. But… GW’s CEO said they would continue to sell out of everything not that long ago, but maybe this is a change of heart. Let’s break down the possible new factory and how it could help with recent product issues.
The information comes from the 2023-24 half-year annual report.
Manufacturing
We continue to manufacture all of our core products at our three factories in Nottingham. Work on improving efficiencies has negated the need for the purchase of any additional manufacturing equipment during the period and allowed numerous manufacturing output records to be broken. As part of our longer term capacity planning, we are exploring options for Factory 4 on the site next to Factory 2.
Games Workshop had pretty wild profits in the first half of the 2023-24 fiscal year, going up from £83.6m to £95.2 and dividends going up by 14p. The launch of Warhammer 40k 10th edition in June 2023 set a new standard for single-month sales, contributing significantly to the company’s remarkable financial performance.
Despite the increases, Games Workshop has struggled to meet the demand from consumers eager for new releases. A prime example (and probably very recent in everyone’s minds) happened when Warhammer: The Old World launch boxes and other products quickly sold out on the first day of their pre-order window (the Bretonnians sold out in no time).
So many people were trying to get products even led to the temporary crash of the Games Workshop webstore. This was also unfortunate because so many products were exclusives, meaning you had nowhere else to get them.
Don’t Expect the Factory Right Away
While hobbyists eagerly await expanded production capabilities to alleviate product shortages, Games Workshop remains cautious. They basically said they would do it, just not sure when.
Current Manufacturing Landscape
Image From Hikrobotics
Games Workshop currently manufactures all its “core products” at three factories located in Nottingham. The company’s half-year report highlights the successful implementation of efficiency improvements, breaking numerous manufacturing output records. The three factories collectively employ 361 people, with a payroll of $7.5 million (£6 million) for the six months ending June 2023. Notably, some of these costs are attributed to temporary staff expenses.
Beyond production challenges, Games Workshop faces obstacles associated with legacy IT systems (which they said are now 2o years old). These hurdles impact launch-day sales and the fulfillment of orders to third-party retailers. As the company looks to enhance its operational efficiency, addressing these legacy systems will be critical to streamline processes and meet the escalating demand for its popular products.
We’ve seen the issues in America with the robots (that they implemented back in 2021) and all the issues that have been created. Speaking of robots, more are on the way in their Memphis, Tennessee, distribution hub.
North America
Additional robotics have been purchased (increasing from 45 to 70 robots) to further increase pick capacity. IT systems
here are less complex than those at EMG (although both warehouses are using the same technology and robotics
solutions), and they are meeting agreed KPIs and milestones.
So, it’s no surprise they need to update legacy systems.
Games Workshop Expansion Plans
Games Workshop has unveiled ambitious plans to expand its manufacturing capabilities in response to the ongoing demand. Recognizing the need for increased production capacity, the company aims to create new facilities to supplement its existing operations in Nottingham.
By investing in state-of-the-art technology and modern facilities, Games Workshop aims to ensure a steady supply of its products, mitigating the risk of shortages and disappointments for eager hobbyists.
As we said, they did not give a time frame just because another factory is planned, which could hopefully help get more products into hobbyists’ hands.
What do you think about the possibility of a new Games Workshop factory?
Let us know in the comments of our Facebook Hobby Group and our Discord server. Make sure you enter the latest monthly giveaway for FREE today!
Click Here To Follow Us On Google News
Get ad-free access to our hobby videos and a monthly drop of miniatures. Plus, support some of the best creators out there for as little as $6 a month on Patreon!
Click Here For All the Hobby Products & Tools We Swear By
About the Author: Rob Baer
