are likely to absorb some of the shift, but there are also signs that production in the U.S. could be on the upswing. Cra-Z-Art recently opened a new facility in Florida to produce a significantly larger number of its arts and crafts supplies domestically. “In response to our recent growth, the facility will allow us to more effectively and efficiently get our products to market for consumers to enjoy,” says CraZ-Art Chairman Lawrence Rosen. “We plan to increase our production of quality goods that are made right here in the U.S., which will ultimately contribute to the economy of the Jacksonville region and beyond,” he says. Fueled by the recent shutdown of Imperial Toy, Sunny Days Entertainment stepped up to fill a market for bubble solution and accessories that has been booming with kids staying at home. In April, the company began shipping 24-ounce bottles of bubble solution from a factory in the U.S. “We have been successful in doing this for 2020 as an emergency stop-gap to help some of our retail partners,” says Melvin Wells, president and CEO of Sunny Days Entertainment. “The bubble business has been strong during the shutdown and the exodus of Imperial has left a major gap in the market. We are working on a strategy for 2021 that will include a made-in-the-U.S. bulk bubble solution.” The oil market is also being watched closely. Following historic lows during a crash that sent prices into negative territory
thanks to a lack of demand for crude oil and a price war between companies in the U.S., Russia, and Saudi Arabia, the market has been on the rebound. It’s a long-term possibility that looks unlikely, but should oil prices ever hold firm on the low end, it is possible that the cost for plastics might come down, prompting more to consider a production move. The biggest challenges with moving business away from China remain the established business relationships with individual factories — some of which are decades-old — and the costs associated with moving or reproducing tooling in other countries, not to mention potential labor issues. These are all hot topics that were discussed at length amid the previous tariff threats last year.
Puzzles and video games took off. Parents became teachers. Adult bicycles started selling out as parents started to join the kids. CELEBRATING EVERYDAY HEROES Following the early rush by toymakers to pivot their business to the production of personal protective equipment (PPE) and providing digital resources for families spending time together at home, the pandemic started a shift toward celebrating the real-life heroes working to keep the world safe and healthy. MGA
Entertainment (MGAE) began taking orders for its L.O.L. Surprise! x MGAE Cares Frontline Hero doll. The limited-edition doll comes with an exclusive face mask accessory and MGAE Cares heart sticker. $1 from each doll sold will benefit Operation: Pac-Man, MGAE’s nonprofit effort started to provide PPE to hospitals and other facilities. Mattel expanded its #ThankYouHeroes initiative to include limited-edition toys and collectibles. A collection of 16 action figures and a set of Fisher-Price Little People honoring essential workers was followed by #ThankYouHeroes offerings from Matchbox, UNO, and Mega Construx. The toys and vehicles celebrated the work of doctors, nurses, EMTs, delivery drivers, grocery store workers, police officers, firefighters, and more. Preorders for the entire line sold out. THE FUTURE OUTLOOK In June, many states had begun the phased processes of reopening businesses. Even with retail sales remaining surprisingly strong, the impact of COVID-19 continues to be felt. In a June 3 Form 8-K filing with the U.S. Securities and Exchange Commission (SEC), Funko revealed that it expects to incur approximately $1 million in charges related to certain termination benefits as the company’s furloughs became permanent layoffs for 25% of its global workforce. The ripple effect is expected to continue, but the outlook is fluid as there is no real way to predict if or when consumers will begin spending at pre-pandemic levels. On June 8, new data emerged from the Global Port Tracker report issued by the National Retail Federation (NRF) and Hackett Associates indicating that retail imports continue to be less than last year, but are slightly better than what was forecast in May. “It may still be too soon to say, but we’ll take that as a sign that the situation could be slowly starting to improve,” says NRF Vice President for Supply Chain and Customs Policy Jonathan Gold. “Consumers want to get back to shopping, and as more people get back to work, retailers want to be sure their shelves are stocked.”»
Mattel’s Mega Construx #ThankYouHeroes building sets quickly sold out.
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