American Plastic Toys Inc working to make gifts for the holiday season amid supply shortage
Many are concerned that the holiday season will be a little less bright as the toy industry faces ongoing supply issues, but one US company is working hard to “bring more and more toys under the tree for Christmas.”
Granthshala Business’ Lydia Hu acquired American Plastic Toys Inc. Spoke with CEO of John Gessert at his company’s factory in Walled Lake, Michigan.
“We really wish we could have done more. We suffer from a lot of the supply chain issues that other companies have — especially toy companies bringing in toys from overseas,” Gessert said. “But I think to be able to produce it here and not have to deal with some of the supply chain hassles that other companies have – I really wish we could have done more, but we have to get it. Doing the best we can. Many toys under the tree for Christmas.”
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According to Gessert, American Plastic Toys Inc. produces approximately 150 different types of products in the US, which are distributed to nearly every major merchant in North America.
They said they are on the verge of ending production in the fall, which includes toys such as kitchen playsets, basketballs and trucks.
Like all manufacturers, toy companies have been facing supply chain woes since factories temporarily closed in China in early 2020. Then, US stores have temporarily cut or halted production amid the lockdown. The situation has only worsened since spring, as companies are finding it difficult to meet labor shortages coupled with rising demand for all kinds of goods from shoppers re-entering the world.
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For toy makers that rely heavily on holiday sales, a lot is at stake for a nearly US$33 billion industry. It accounted for 70% of annual sales in the fourth quarter. Holiday sales average 20% of the overall retail industry.
Granthshala Business’ Frank Miles contributed to this article.