Red, White And Seeing Green

At least part of the U.S. toy industry was feeling patriotic last year after news of the recalls raised concerns about products made overseas. Now that things have quieted down, are manufacturers and retailers still waiving the flag for domestically made products?

The answer appears to be “yes,” particularly among manufacturers and retailers on the specialty side of the business where a “Made in the U.S.A.” bent is already an important part of the business model.

“The trickle down effect driven by consumers to retailers and in turn to manufacturers is definitely still in play these days,” says Jon Hogue, vice president at Charleroi, Pa.-based Channel Craft, which happens to be celebrating its 25th anniversary in 2008. “We saw some immediate impact for holiday '07 and now we're seeing it continue into spring and summer. Retailers are definitely more cognizant of the issue and we have some of our oldest customers telling us they are glad to see we're making our products in the U.S., even though we've been doing so for the past 25 years.”

As consumers have become increasingly interested in a product's country of origin, toymakers are proactively getting the word out with updated information and callouts on their websites. In the case of Buffalo, N.Y.-based Buffalo Games, new packaging on its puzzles and games that more prominently features its Made in America tag is on tap for this year.

“We're proud of our local roots and American-made status. We believe that manufacturing goods in the U.S. is good for the economy and for American workers,” Christopher Thorpe, Buffalo Games' manager of product marketing and public relations, tells Playthings.

Some might question whether this fervor will blow over as the winter winds die down but many in the industry feel it will continue to be a hot issue.

“The demand still exists, and we are still seeing questions from consumers. As long as it as an issue for the U.S. consumer, it will be an issue for retailers. American consumers are among the most sophisticated and discerning consumers in the world. If they have the option of buying an innovative, high quality and cool product that is made here, they do,” says Michael Araten, president and chief operating officer at construction toy maker K'Nex.

For K'Nex, manufacturing both domestically and overseas creates economies of scale for the company. The rods, bricks and connectors for its K'Nex, Kid K'Nex and new Sesame Street sets are made in its headquarters in Hatsfield, Pa., while motors and short-run specialized parts are made overseas. Chinese workers also perform pack-outs for two-thirds of K'Nex's construction sets due to the labor intensive nature of the assembly process.

Similarly, Little Tikes, Hudson, Ohio, also splits its manufacturing. Sixty-seven percent of its products are made in the U.S. and the remainder produced in either Poland or Asia, the company says.

“There has always been a demand for great product made in the U.S. and last year was a wake up call for safety,” says Tom Prichard, Little Tikes' executive vice president. “Now the whole industry is more aware of where a product is manufactured.”

Retailers have reacted to the surge in demand for American-made playthings with efforts of their own. Some major retailers—FAO Schwarz and Toys “R” Us, for example—say they have made efforts to beef up their employees' knowledge of which goods on their shelves are made in America.

To help simplify what can often be a difficult search for non-Chinese made toys, FAO allows its online customers to search for products by country of origin and is using signage in its brick-and-mortar stores as a means of identifying its American- and European-made toy sections.

At G. Willikers, a specialty store in the historic downtown area of Portsmouth, N.H., management is careful to maintain a protocol that it adopted around the time of the first recalls that allows it bring in new toys only after a careful examination of their country of origin,” confides co-owner Jody Breneman.

For the first time in its 30 year history, G. Willikers has created a Made in the U.S. section in the store. “Our goal with the new section is to show our customers the breadth of what we offer and make it easy for them to find products that are made in the U.S., if that's what they're looking for,” said Breneman. Customers can also pick up a pre-printed list that details which toys are made in the U.S. and which are made in other countries. Furthermore, the retailer is supporting a “buy local” initiative in its hometown and is stocking a greater selection of games and toys created by artisans and inventors local to its community. “Our customers love the idea because they can try out quality products and the toymakers have a place to show their things and hear what consumers are thinking,” Breneman says.

At Dancing Bear Toys in Frederick, Md., owner Tom England has stocked the shelves of his store for the past eight years with games and puzzles from companies such as Channel Craft, blocks, plush and educational games from Germany's Habermaas (Haba) and blocks, games and puzzles from Thailand's Plan Toys.

“Consumers are more aware and more informed shoppers these days. It's not necessarily the fact of whether or not something's made in China, but rather if the products go through the same standards as in the U.S. or Europe,” England tells Playthings.

The need to have more domestically available products prompted Kerry and Andrew Menger to launch NMCtoys.com in 2007, largely due to their frustration as parents of two small children at the lack of toys produced anywhere but China. The website launched in November and currently has a wide selection of products sourced from the U.S. and Europe, such as wooden trains and step stools from Holgate Toys, trucks from Bruder Toys and puzzles from Lauri Toys. Despite the enthusiasm, it is still not that easy to find a wide range of items that fit the bill.

“We attended Toy Fair searching for toys made in the U.S. and it was like looking for a needle in a haystack,” says Kerry. “Fortunately, we did find a handful of treasures that we are excited to add to the site.”

Maple Landmark, which is based in and makes all of its toys in Vermont, used this year's Toy Fair to debut Schoolhouse Naturals, a line of wooden toys offered with no finish as “consumers have concerns about chemicals far beyond lead,” says Michael Rainville, president. “We have designed these products to take advantage of the inherent beauty and durability of rock maple, our primary material.”

For American Plastic Toys, based in Walled Lake, Mich., the recent surge in pro-U.S. sentiment boosted the company's spring product shipments with more orders from the majors.

“One major toy retailer came to our booth during Toy Fair and told us they are going to do a Made in America planogram, which is really exciting,” Steve Mellos, national sales manager, tells Playthings.

Business is also strong over at Holgate Toys, based in St. Paul, Minn., with the company experiencing significant gains in 2007 that have continued into 2008, according to Richard Bly, Holgate's president. Continuing favorites for the company include the Rocky Color Cone, My First Block Wagon, Hickory Dickory Dock Clock and wooden toys, all made of 100 percent natural kiln-dried hardwoods and non-toxic paints. “Our customers have always supported us and I see that devotion only growing as time goes by.”