There was an interesting article in the Detroit Free Press today from Associated Press with the above caption. Here are just a few points in that article :

-- The nation's toy makers are faced with soaring
energy & raw material prices & rising labor costs
in China.
-- Consumers could face 10% price increases.
-- We will see more $7.99 toys at the bottom instead
of $2.99 ( Code3 $42.99 - 47.99 )
-- The falling U.S. dollar against the Chinese Yuan.
-- U.S. Toy industry imports 80% of its products
from China.
-- Soaring wages in China - 20% increase in coastal
areas and labor shortges (???).
-- A new Chinese worker rights law enacted in Jan.
pushese more costs on the employer.
I can understand pay raises but labor shortages ? then again it does take some skill to assemble these toys - guess you can't take people out of the fields to make toys - or maybe that's where Code3's quality problems are coming from.
Jim L.

Location: Southgate, MI

The only thing I agree with that article is that the chinese workers deserve far better wages and living conditions than what they are getting. Good for them finally.

Labor shortage??? Are you kidding me?? How many billion people in China and there is a labor shortage. I doubt that very much. And this is not what I would really call "skilled" labor. Put this piece on top of this, screw this piece, put a decal on this piece. Nearly anyone can do that job with minimal training. Its more a common sense thing. Given a picture, a set of basic instructions, and a bag of parts, it doesn't take a rocket scientist to assemble toys...or Code 3s for that matter.

One good thing, will be that 5 years down the road we may see a partial return of some of these industries to the US, if the dollar strengthens, and with equalization of labor costs.

Again, I think US consumers are nearing the point where they are fed up with price increases. All that will do is force them to spend less and make more decisions based on quality.

Location: Right Here

From and article in USA Today:

"DONGGUAN, China — The unthinkable is happening in China: This country of 1.3 billion can no longer find enough people willing to work long hours for low wages churning out cheap consumer goods for the export market.

Sounds like they are adopting the American way of life.

I have heard about the labor shortage from several manufacturers that I deal with. It seems that a lot of the lower wage workers are moving from toy companies to heavy industrial, washing machines, air conditioners and such, for better wages. It is interesting the disparity at some of the toy companies that I have seen pictures of, on one hand I have seen pictures of a barefoot worker cleaning up metal castings on the floor, people painting without respirators and such, on the other hand there is a video online of the CMC factory, everyone dressed in a company uniform, clean and well lighted workplace making amazing models. Also remember that there are only a few companies in China that make toys for many companies at the same time.