US toy company battles supply chain crunch to save Christmas

American toy company battles supply chain crunch to save Christmas

FOX Business’ Lydia Hu speaks with the CEO of American Plastic Toys Inc. about U.S. production and supply chain issues around the globe. 

Many are worried that the holiday season will be a little less bright as the toy industry faces ongoing supply issues, but one American company is working hard "to get as many toys under the tree for Christmas."

FOX Business’ Lydia Hu spoke with American Plastic Toys Inc. CEO John Gessert at his company’s factory in Walled Lake, Michigan. 

"We really wish we could have done more. We've suffering from a lot of the supply chain issues that other companies have — especially the toy companies bringing toys in from overseas," Gessert said. "But I think being able to produce it here and not have to contend with some of the supply chain snarls that the other companies have — I really wish we could have done more, but we're doing the best we can to get as many toys under the tree for Christmas."

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The number of ships waiting to enter the Port of Los Angeles and Port of Long Beach hit a record on Monday as labor shortages wreak havoc on the global supply chain. (Photo by Qian Weizhong/VCG via Getty Images / Getty Images)

American Plastic Toys Inc. produces approximately 150 different types of products in the U.S., which are distributed to virtually every mass merchant in North America, according to Gessert. 

He said they’re on the verge of concluding fall production, which includes toys like kitchen playsets, basketballs and trucks. 

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Like all manufacturers, toy companies have been facing supply chain woes since the pandemic temporarily closed factories in China in early 2020. Then, U.S. stores temporarily cut back or halted production amid lockdowns. The situation has only worsened since the spring, with companies having a hard time meeting surging demand for all sorts of goods from shoppers re-entering the world, as well as labor shortages.

Empty shelves are seen at an IKEA store on October 15, 2021 (Photo by Michael M. Santiago/Getty Images) (Michael M. Santiago/Getty Images / Getty Images)

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For toymakers that heavily rely on holiday sales, there’s a lot at stake for the nearly $33 billion U.S. industry. The fourth-quarter accounts for 70% of its annual sales. On average, holiday sales account for 20% of the overall retail industry. 

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FOX Business’ Frank Miles contributed to this article. 

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