Chinese Manufactured Toys on the Decline

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A report by China Daily suggests that the salad days for off-shore toy manufacturing in China are over. A toy industry insider suggested that “over half” of the manufacturing plants will close their doors in the next two years.

From the article in ToyNews: it is predicted than

companies with good financials and their own brands are more likely to survive, while others, such as those dependent on OEM (original equipment manufacturing), will find it more difficult.
According to figures from the association, since 2006, the total cost of producing toys has risen by about 60 per cent, while contract prices have gone up by an average of just 10 per cent.

Why the doom and gloom?

This analysis came after the closure of the Smart Union toy factory in Dongguan last week. The economic slow-down is due to a menagerie of reasons, starting with the global market collapse.  With the weakening US dollar, as well as the quickly rising cost of supplies, the future of cheap toy outsourcing is looking grim.

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