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AMA Takes Aim At FCC Regulations
On Foreign Components

The Academy of Model Aeronautics (AMA) is working with the Federal Communications Commission (FCC) to clarify the impact on the hobby industry of a regulation that adds all uncrewed aircraft systems (UAS), and UAS components produced by foreign entities, to the list of items banned for posing an “unacceptable risk to the national security of the United States or the security and safety of United States persons.”

It appears that this prohibition does not affect existing UAS or UAS components that were authorized prior to Dec. 21, or outlaw their use, the AMA noted in a blog post. It should also not affect models that have already received FAA authorization.

However, because virtually all model components are manufactured abroad, this security restriction would have huge implications for both the hobbyist and commercial airspace industries moving forward, according to Tyler Dobbs,
executive director of the AMA.

It should be noted that this determination was made on Dec. 21 and released to the public on Dec. 22, leaving airspace industry stakeholders without any warning. The AMA had previously submitted public comments to the Bureau of Industry and Security in early March related to this topic, offering multiple recommendations to ease restrictions on the hobbyist community.

However, the FCC and the Public Safety and Homeland
Security Bureau (PSHSB) have made this determination through pre-existing mechanics in the 2025 National Defense Authorization Act, side-stepping the typical public comment period and advance notice that stakeholders would usually receive.

The AMA is engaging with the FCC and congressional offices to address this issue, alongside other industry stakeholders who have fought against broad component bans and advocated for definition changes to the generic use of “UAS” to give relief to recreational modelers from similar security enforcements and regulations.

In Memoriam: Ray Miller, HobbyTown Owne

Raymond Elebert Miller, Jr., 67, of Ashland, Kentucky, passed away on Jan. 2 following a sudden illness. Ray was born Sept. 11, 1958, in Hazard, Kentucky, a son of the late Raymond Elbert and Janice Lee Cox Miller. Surviving, in addition to his loving wife, include two sons: Rayme Miller of Ashland, Kentucky, and Nathaniel Harris and his wife Heather of South Shore, Kentucky; and a daughter, Heather French, and her husband David of Wurtland, Kentucky. Ray and his brother, Brian, owned HobbyTown stores in Cincinnati; Columbus; South Point, Ohio; Mentor, Ohio; and Lexington, Kentucky.

Shipping Delays Hurt Christmas Cheer

During the holiday season, delays at the U.S. Postal Service derailed shipments and left storeowners and customers disappointed.

Anita Embry, owner of Trains in the Attic in La Grange, Kentucky, told WHAS-TV that more than 1,000 shipments were stuck at a local postal facility. According to USPS tracking, many packages sat for days without movement.

Frustrated customers asked for refunds, further complicating the situation. The Postal Service acknowledged delays due to weather and high volumes.

Embry monitored packages on a daily basis to keep customers updated, but there was little she could do to overcome the delays. Embry estimated refunds could cost the store thousands of dollars.

Hitec Signs RC Racer Ryan Cavalieri

Hitec has signed world-renowned driver Ryan Cavalieri to a sponsorship deal. With years of success, including four IFMAR World Championship titles, 30 ROAR National titles, four Reedy Invitational titles, and a Neo Buggy
Championship title, to name a few, Ryan embodies the spirit of innovation and excellence that aligns perfectly with their brand, said Mike Mayberry, Hitec RC sales and team manager.

“His expertise not only reflects his remarkable driving skills but also his deep understanding of the technology that powers competitive racing,” Mayberry said.

For his debut, Ryan showcased his talents and Hitec’s cutting-edge servos at the prestigious Silver State Championships in Las Vegas. Attendees witnessed firsthand how he integrated Hitec servos into his racing strategy, further solidifying his reputation as a leader in the field.

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Global Toy Train Market Forecast Signals Growth

A commercial market research report projects that the global toy trains market will grow at a compound annual growth rate of roughly 5.2%, potentially reaching about $3.8 billion by 2031/2033, depending on the reporting horizon.

The report highlights nostalgia-driven adult collectors, STEM and
educational demand, product innovation, and e-commerce expansion as primary growth drivers for collectors, clubs, retailers, and small manufacturers.

Key factors supporting growth include sustained interest from adult collectors drawn by nostalgia and collectible scale models, an ongoing role for toy trains in STEM and educational play, and continued product innovation.

Manufacturers are expanding beyond traditional electric track sets into battery-powered, smart-connected systems; wooden and magnetic configurations for younger children; and themed or licensed sets that broaden appeal. The report also notes rising e-commerce sales as a major channel enabling niche brands and specialty retailers to reach international buyers.

Prominent industry names remain central to the market landscape. The analysis lists Lionel, Bachmann, Hornby, Märklin, Kato, LEGO, and other established brands as significant players across segments,
including battery-powered toys, electric track sets, wooden trains, diecast and collectible scale models, accessories, and remote-controlled systems. For local clubs and swap-meet organizers, that range of product types means an expanding pool of potential participants and an evolving resale market for both vintage and modern items.

To leverage expected growth, retailers and market vendors should evaluate inventory mixes to include battery- and app-enabled sets, as well as licensed, themed products. Collectors and restorers can anticipate continued aftermarket interest and a market that supports higher-end scale models. Event promoters and train clubs can leverage renewed family interest in educational train toys to expand outreach programs and youth-focused activities.

Fun Time Hobbies Moves To Larger Location

Fun Time Hobbies of Southwest Florida, formerly Caloosa Trains and Hobbies, moved to a new, larger location in Cape Coral. The new store offers a wider selection of RC cars, trucks, planes, and drones, more model kits and detailed builds, and a huge restock of paints, airbrush supplies, and finishing materials, according to President S. Vincent Anthony.

Hornby Faces Cash Crunch

Hornby, the legend behind venerable brands like Scalextric racing cars, Airfix kits, and model railways, has warned of a “severe” cash crunch that could force it to delay paying back substantial loans.

The privately held company announced it may not be able to repay a nearly $17 million loan after seasons of slow sales, rising costs, and disruptions to global trade routes.

The situation is so dire that Hornby has admitted it may need to ask its main backer, Phoenix Asset Management, to hold off on collecting on the loan.

Company officials have discussed a “severe but plausible”
scenario in which they simply won’t have the cash to pay on time.

However, Phoenix has promised to keep the lifeline open if
the toy firm is unable to make good on its obligations.

Retail tycoon Mike Ashley, the man behind Sports Direct, is now lurking in the background to help steer the ship.

Through his Frasers Group, Ashley snapped up an 8.9% stake in the business back in 2024 and is personally advising them on a strategy to slash costs.

Hornby went private last year and delisted from the London Stock Exchange to focus entirely on a massive restructuring program away from the public eye.

It has been a rough ride for the toy group, as it faces headwinds from all sides.

Operations in the United States have already declined as trade tariffs hit products manufactured in China and Vietnam. At the same time, Houthi rebel attacks on ships in the Red Sea have caused chaos by delaying the arrival of stock from Asia.

The U.S. division alone posted a trading loss of $1.3 million as the company closed its West Coast warehouse. In the U.K., the business is struggling with higher bills after rises in the national living minimum wage sent distribution costs soaring.

Despite the gloom, it is not all bad news for toy fans.

There are signs of a turnaround after the company reported a festive surge, with Christmas sales jumping by 23% in December.

Hornby chief executive Olly Raeburn admitted the firm is
undergoing seismic change across multiple fronts.

In a statement, he said: “Although the group is making strategic progress, this is against a challenging economic backdrop, and there is still much to do, as the financial results for the year demonstrate.