Coronavirus could create toy shortage
Toy companies who rely on China manufacturing are watching production closely
As the coronavirus continues to ravage the markets and upset China-dependent production, one industry may feel the direct impact of the relentless outbreak.
The Toy Association CEO Steve Pasierb is closely monitoring the impact of the coronavirus on the toy industry and the threat it poses to production.
“We’re in a window right now where if we don't ramp up production in the next 30 to 60 days… it's going to begin to affect summer toys and… get us into the holiday season,” he told FOX Business’ Lauren Simonetti.
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Pasierb said toy companies are in conversation with suppliers and partners that rely on China about what the future of production will look like. Since coronavirus continues to interrupt foreign trade, he said it’s “pretty uncertain as to when this will break free.”
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The shortage will not impact Easter toy sales, which has become a big toy-giving holiday, but Pasierb said they're watching summer production closely. Some companies are also paying close attention to production ahead of the holiday season which could place big retailers in the line of fire.
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“For some of our companies, the fall set at Walmart or Target is hugely important,” he said, adding that moving manufacturing quickly in this climate isn’t possible.