Regional toy firms are fending off the supply-chain Grinch
The supply-chain crisis is toying with most industries – including the toy industry. That is not good, for there are a lot of kids anticipating a lot of gifts on Christmas morning, a mere six weeks away.
Pandemic-related factory shutdowns, insufficient shipping and workforce issues have fueled supply disruptions that are fostering concerns this holiday season. Manufacturers, distributors, retailers, mall managers and parents are wary of possible shortages of toys, action figures and hobby items. Less merchandise can lead to diminished revenue.
Hasbro Inc., a global toy company, has been hit hard by this phenomenon, according to a report in Reuters. Hasbro told the news agency in late October that chain issues resulted in a loss of $100 million in toy orders during the third quarter.
Yet not all analysts are forecasting a dreary retail season. The business-related website businessinsider.com reported recently that Wall Street insiders “aren’t as alarmed” about supplies of toys, and that larger toy companies began preparing up to a year ago for anticipated delays and/or shortages.
Toy- and hobby-related merchants in the region, contacted for this story, likewise have followed the Boy Scout motto of “Be Prepared.”
“We have no shortage here,” said Dean Helfer Jr., founder and president of Channel Craft & Distribution, a toy manufacturer in North Charleroi. “We’ve invested for a year-and-a-half in workers and materials. I don’t believe we’re lacking anything in raw materials for our toys, games and puzzles.”
Or the distinctive kazoos, whistles and boomerangs it produces.
He acknowledged that Channel Craft did have a “lean” holiday season in 2020, when the pandemic was having a more profound effect pre-vaccine. The company rebounded by building up inventory late last year and in early 2021. Helfer said all of the stock was gone by Easter, when Channel Craft started the process again.
“I’ve been doing this for 38 years, and it’s an uphill climb around Christmas, but we’re trying to satisfy customers who have been true to us for 30 years.”
And at a time when thousands of employers have complained about a lack of job applicants, Helfer has gotten a boost from young workers. Channel Craft, which has brought college students on board through internships in recent years, approached counselors at seven area high schools this year in an effort to recruit workers. “We got students 16 to 18 in our assembly shop,” Helfer said.
His company has had supply challenges, but continues to endure.
“A lot of plastic and metal components were held up,” he said. A truckload of maple being processed in Oregon was supposed to be delivered to the firm’s complex during the summer, but did not arrive until late September. “It took four months to do what normally takes a month.”
Trevor Waligura has a slightly different concept in downtown Uniontown: a hobby shop.
“No traditional toy stores are left in the world,” quipped the owner of Get A Hobby, in Uniontown Shopping Center.
He relocated the business from West Main Street in the city two weeks before the pandemic struck Southwestern Pennsylvania. The new space encompasses 9,000 square feet and includes an indoor racetrack.
Waligura said his business not only survived 2020, it thrived. “This is a hobby store, and with people on lockdown, not taking vacations, and getting financial assistance from the government, they had a lot of time and money on their hands. We did well.
“We did have an issue with supply and demand, and (higher) shipping costs are passed on to us. But you learn to adjust, get alternate products in and do the best you can do.”
Like Helfer at Channel Craft, Waligura strives to be well stocked. “I’m carrying a lot more inventory than before, but I need inventory,” he said.
Waligura agrees there are supply-and-demand challenges, but pointed out that “we were creating a supply problem by filling our shelves. We’ve been stocking up since June.
“I hope nothing goes wrong with the economy because all of my money is tied up in the store.”
It’s a small world at Lilliput Play Homes, which designs and builds luxury residential and commercial playhouses for children. Supply challenges have not been big there, either, but have created issues.
“We’ve had delays on manufactured products – lumber and PVC (a synthetic plastic polymer),” said Caryn Chernicky, director of special operations for the Finleyville-based manufacturer.
“We’ve also seen highly increased prices. We’re very busy, but our lead time is 18 to 20 weeks for new orders. There are not as many trucks available, so the price of shipping has gone up.”
She added, however, that “the materials issue has not been as great as the COVID issues.”
The company has a play center for children, called Lilliput Towne Center, on Washington Road in Peters Township. “We do style toys there for resale,” Chernicky said.
The supply crisis has not wrought havoc with these three businesses, and may not prove to be a Grinch that ultimately steals Christmas across the globe. But navigating the issue, to be sure, is not child’s play for anyone connected to the toy industry.