The Hidden Costs of the Toy Industry

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The Hidden Costs of the Toy Industry

Postby Tekwych » Wed Apr 27, 2011 12:22 am

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Re: The Hidden Costs of the Toy Industry

Postby Tekwych » Wed Apr 27, 2011 12:32 am

I know that similar issues have caused major disruptions, the ends of lines, and even the ends of companies at Palasades, NECA, Sota, Mezco, and Product Enterprises.
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Re: The Hidden Costs of the Toy Industry

Postby Toygiant » Wed Apr 27, 2011 9:03 pm

This is disgusting! And it's always the smaller toy companies, who do this type of work out of love for the hobby, who get screwed because they have a lot less representation in Asia than the big companies. The whole 'conditioning' thing is reminicent of what the Horsemen delt with on the A9. What a friggin crock!
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Re: The Hidden Costs of the Toy Industry

Postby dayraven » Wed Apr 27, 2011 9:31 pm

you know... chalk this up to one more cost of doing business w/ these foreign companies that lakc accountability to their US patrons... i know there's this idea that costs of moving toy production back to the US would be prohibitive... but at least, if a company tried some starfruit like that, you'd have legal recourse.

i hope the cast-a-way folks come out OK on all this.
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Re: The Hidden Costs of the Toy Industry

Postby Toygiant » Thu Apr 28, 2011 12:52 am

In reality, we're rapidly approaching US plastics production costs being almost eqivilent, when you eliminate the trasnportation needed to get the foreign made products to the US. Meaning, you eliminate the cost to ship the products here by passing that revenue to the production facilities here for a tripple win: Products are made here supporting our economy, the prices of the products don't rise for the consumer to purchase (as the higher cost of local production becomes a wash when eliminating the foreign shipping), and we get the products up to 3 months earlier. We're not quite there yet, but at the rate we're going, it wont be long. Really the only thing holding companies back are the environmental issues. They are nowhere near as stringent there as they are here. Once that kind of production becomes more environmentally friendly, we all win. But building a 'green' plastics production facility from the ground up is probably viewed as a huge financial liability for a company who's always done it the old way.

If I win Powerball, you'll see the first one. 'Toygiant Industries' has a nice ring to it. :sectaur:
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Re: The Hidden Costs of the Toy Industry

Postby dayraven » Thu Apr 28, 2011 7:59 am

Toygiant wrote:In reality, we're rapidly approaching US plastics production costs being almost eqivilent, when you eliminate the trasnportation needed to get the foreign made products to the US. Meaning, you eliminate the cost to ship the products here by passing that revenue to the production facilities here for a tripple win: Products are made here supporting our economy, the prices of the products don't rise for the consumer to purchase (as the higher cost of local production becomes a wash when eliminating the foreign shipping), and we get the products up to 3 months earlier. We're not quite there yet, but at the rate we're going, it wont be long. Really the only thing holding companies back are the environmental issues. They are nowhere near as stringent there as they are here. Once that kind of production becomes more environmentally friendly, we all win. But building a 'green' plastics production facility from the ground up is probably viewed as a huge financial liability for a company who's always done it the old way.

If I win Powerball, you'll see the first one. 'Toygiant Industries' has a nice ring to it. :sectaur:


HA!! you find yourself needing a shift manager at Toygiant Industries, you make sure to give me a holler. [grin]
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Re: The Hidden Costs of the Toy Industry

Postby Tekwych » Thu Apr 28, 2011 8:54 am

The other 'factor' that both Hasbro and Mattel have used in the last year is 'Skilled Labor'. They have both stated that the biggest reason for not looking beyond China is a skilled labor pool that does not cost as much as elsewhere.

I had been pushing for a North American facility, maybe just across the border in northern Mexico. Labor costs will still be low, environmental laws are not as strong and shipping would just be a few miles to the border. You create jobs that are not linked to drugs while encourging Mexicans to stay south of the border with a quality job.

Their answer was it would take a North American factory years of production with other small toy companies before they could ever have the quality that in needed for their (Hasbro or Mattel) needs.
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Re: The Hidden Costs of the Toy Industry

Postby dayraven » Thu Apr 28, 2011 9:59 am

Tekwych wrote:The other 'factor' that both Hasbro and Mattel have used in the last year is 'Skilled Labor'. They have both stated that the biggest reason for not looking beyond China is a skilled labor pool that does not cost as much as elsewhere.

I had been pushing for a North American facility, maybe just across the border in northern Mexico. Labor costs will still be low, environmental laws are not as strong and shipping would just be a few miles to the border. You create jobs that are not linked to drugs while encourging Mexicans to stay south of the border with a quality job.

Their answer was it would take a North American factory years of production with other small toy companies before they could ever have the quality that in needed for their (Hasbro or Mattel) needs.


totally with you... and putting the factory in mexico ALSO means you just solved your customs problems... let's make NAFTA work for us.

i do have to say that while truth is not a big commodity for the corporations talking to we laymen, i completely resist the notion that the chinese are some super-people able to learn impossible toycraft in nano-seconds. when you're poor, and someone is willing to pay you to do a job, you learn fast... it's an extrapolated evolutionary trait deriving from the survival instinct channeled through the hunger response... hungry people learn fast or die. so yeah... move the factory to some other poor nation that still has roads... they'll learn how to assemble your mego-knockoffs just fine.
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Re: The Hidden Costs of the Toy Industry

Postby Tekwych » Thu Apr 28, 2011 2:49 pm

Foxcon, the world's largest assembler of electronics (and another Chinese company), has grown to big for China and is building their next factory town in Brazil.
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Re: The Hidden Costs of the Toy Industry

Postby dayraven » Thu Apr 28, 2011 4:45 pm

Tekwych wrote:Foxcon, the world's largest assembler of electronics (and another Chinese company), has grown to big for China and is building their next factory town in Brazil.



oooh... brazil's a good one. i can't help thinking ecuador is another country ripe for the picking. easy coastal access, a concentrated urban population w/ a slowly emerging white collar sector, and low wages
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