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July 2007 | Vol. VI - No. 7

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Made in the USA Toys

How Companies Keep Costs Down While Staying Stateside

By: Julie L. Jones
7/1/2007

“We would not be in business if we went overseas.” — Michael Rainville, Maple Landmark Woodcraft

American toy companies can save 50 percent or more on manufacturing costs by taking production outside U.S. borders. And yet, some refuse to set sail. They like stateside control, they told TDmonthly Magazine, and they’re proud to put “Made in the USA” on display.

Given recent concerns over reports of tainted toothpaste, pet food and other imports from China, including some of RC2's Thomas & Friends toys containing lead paint, it's possible that more manufacturers may think twice before jumping at foreign price cuts.

COST-CUTTING CUTS SALES

Michael Rainville, CEO of Maple Landmark Woodcraft in Middlebury, Vt., said “the cost of production in China is easily more than 75 percent less than in the U.S.,” but noted additional fees related to transportation, inventory and more. These are difficult for smaller companies, he said, and contribute to a plan in which “price is the only driver.”

For Rainville, production isn’t about price; rather, it’s about filling a niche for clientele who demand natural products and have concerns about the environment, safety and American jobs. “We would not be in business if we went overseas,” he stated.

CONTROL PAYS OFF

Logistical considerations, such as the ability to run small batches, are one reason Owner Dean Helfer of Channel Craft and Distribution keeps business here.

“[Overseas], we would have a whole lot less control over getting our customers what they need, when they need it,” he said, since shipments from abroad can take months.

President Mark Carson of Fat Brain Toy Co. told TDmonthly that during a tight production schedule to launch Dado Cubes, his company made numerous visits to its nearby mold maker and injection molder — a task that “would be difficult and time consuming to do overseas.”

Smethport Specialty keeps its footing by building its own machinery and by stocking parts, but not finished pieces. "Cash flow is a lot better,” said President Scott Cavagnaro. “Instead of $10 [on the shelf], I might have $2 worth of premade parts without any labor.”

IT’S A TOSS UP

But even those committed to the U.S. can be tempted to stray.

Teacup Tables, looking to partner with a Texas mill to expand its six-person operation, was enticed by overseas price quotes. Nevertheless, Owner Terri Foxworth assured TDmonthly that her company is first concerned with quality, and she doesn’t support labor conditions abroad.

Quality also played into Ttalf Corporation’s decision to manufacture the Yackle Ball at home. “I had a sample sent to me of what China could do, and it fell apart in less than 20 minutes,” CEO Patricia Littwin said. But when the company tested 60 of the USA-made Yackle Balls with 1,150 middle schoolers for two days, they “did not lose one.”

Nevertheless, Littwin admitted that two upcoming products featuring mold-injected foam will be imported because of high prices related to the use of a certain chemical.

Baker Wood Marionettes recently outsourced some Disney-licensed products, but prefers to manufacturer at home, according to Owner Bob Baker, who feels strongly that the United States is “giving everything away to other countries.”

MONEY IN THE BALANCE

But Baker admitted that U.S. production is challenging: "We don't make as much profit as we should, and we have to keep the stuff competitive.”

Pat Secrist of Secrist Doll Company, citing a procedure that describes in detail how to don safety glasses, said an increase in U.S. regulation might cause him to move production. But, the flexibility of his 15 employees — 12 of whom make the dolls — is a plus. “One employee may know literally 10 different jobs,” he said. “And it allows us to pay them more.”

Dimensions holds down costs for its 75-member workforce at a Northern California manufacturing and shipping facility for Perler Beads because “the labor rates…are a little bit lower,” Sales Manager Ann Shade told TDmonthly.

THE HEART OF PRODUCTION

For many companies, manufacturing at home is about giving products a personal touch. The father-son team that makes Rolli-Rider puts “personal love and attention” into the bicycles produced by the hundreds, Owner Noel Eberhardt said.

But it’s not only the owners who feel loyalty to home-based companies. The average tenure at Maple Landmark Woodcraft is more than 10 years, and some of the 35 skilled craftsmen and women at Channel Craft have been there for 15.

A few retailers have pledged their allegiance, too, telling Owner Bruce Wettland of Uncle’s Puzzles that the “Made in the USA” label on his red, white and blue gift boxes should be bigger.

See U.S. products from these and other companies below:

Jungle Table Set by TEACUP TABLES LLC

Other products from TEACUP TABLES LLC