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Model Railroad Business Riding Out Pandemic

Published February 21, 2021

While many small businesses were derailed by the COVID-19 pandemic, Paul Pasowicz, owner of EngineHouse Services of Green Bay, says his business is getting back on track.

'The 10-week shutdown almost killed us,' Pasowicz said. 'Because we were considered nonessential, no one was allowed to work other than me. We had a couple of people working at home trying to survive, but it was a challenge on our cash flow. We're doing well now; sales are increasing every day.'

And, he says, once a person walks in and starts investigating model railroading, they'll be hooked for life.

'This is something I am passionate about,' he said. 'It gives people enjoyment and it is challenging. This is a very diverse hobby and it is never boring because of all the disciplines involved. It is also a very social hobby for those who want it to be.'

Although many of the social aspects, such as train shows and educational clinics, are on hold, enthusiasts get together on social media and share their progress in developing layouts. There is a wide range of motivations for participating.

Pasowicz says some customers love the artistic challenges of 3-dimensional art. Others love the historical, engineering, electronics, or operations aspects.

'I can go on and on as to all of the different aspects that are involved with the hobby, but helping individuals find what they love and enjoy is our niche,' he said. 'We are providing quality items that match their interests, and creating something for them that is not available in the marketplace.'

As the reputation of EngineHouse Services has grown, so has the number of customers. The business was started as a hobby in 1995, but after being laid off from a managerial job, Pasowicz was encouraged by his wife to make it a full-time pursuit. She was watching a business segment on a local news outlet when she saw a feature on Urban Hope, located in Green Bay.

Founded by Packers legend Reggie White and his wife Sara, Urban Hope offered courses to encourage entrepreneurship.

Pasowicz recalled: 'My wife asked the right questions to motivate me to take it further. I had the pleasure of meeting Reggie, and I bet you don't know he also was a model train guy. He took a tiny layout in a suitcase when the team traveled. He wanted me to build him a layout, but unfortunately, he passed away too soon.'

Pasowicz enrolled in the program and said he was coached to become a successful business owner. He did extensive research, developed a business plan, and received detailed training.

Research showed him that EngineHouse would be a destination for a specific target audience and he didn't need to be in a mall or high-traffic area. About 70% of his business comes from more than 30 miles away, so he chose a location with easy highway access. He opened in 2002, and the business evolved from there.

'When I initially started, it was more service and custom work than retail, which is why the name EngineHouse Services,' Pasowicz said. 'At the time, there were few products available, which is why I was custom building and painting models. Other modelers saw my work and asked if I could make something unique for them.'

The initial services expanded to include decoder services (upgrading of model equipment and accessories to current technology), kitbashing (producing a specific model of a prototype that isn't available commercially), locomotive repair, custom painting, track planning, structure building, and layout construction.

His love for the hobby began with a layout that he says provides a lesson.

'When Santa brought a train for our 8-year-old son (now 36), it was evident how much I enjoyed model railroading and was actually quite good at custom detail and painting,' Pasowicz said. 'The moral of this little story is you never know when you may use what you learned in your past.'

Now, years later, he says he has designed and built about 20 layouts for himself, has designed a similar number for customers, and has finished layouts for a number of others. Most layouts, however, are never finished as changes and enhancements are made.

Similarly, Pasowicz does not consider his business to be done growing and changing. He has learned it isn't wise to try to do everything himself, and that by adding employees, the business has grown. The addition of eCommerce and redesign of his website led to further growth and was instrumental in helping him survive the shutdown.

Those taking up the hobby also benefited as many found it to be a welcome reprieve from pandemic stress.

'There is a reason why this has been called, 'The World's Greatest Hobby,'' he said. 'You build something, you create something, and you can get totally immersed in it.'

Tina Dettman-Bielefeldt is co-owner of DB Commercial Real Estate in Green Bay and past district director for SCORE, Wisconsin. 

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Green Bay Press-Gazette

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