Mattel CEO says toy manufacturing won't come to America, but price hikes will

Why does Mike Johnson always look so evil in every picture he's in?

Especially when the US Government changes its mind about tariffs every few minutes. No one can plan major infrastructure changes around that.

And it's not just the assembly factories that are the problem. Why the hell would you create a factory here when your entire supply chain is going to be hit by tariffs anyway. Not only are you still having to increase prices, now you're less competitive than offshore factories due to labor, input, and real estate costs. And why would you move supply chain factories here only for them to have to deal with both the above problems and retaliatory tariffs. The US market isn't worth that for a whole lot of things.

Also, why invest in moving your entire manufacturing side to the US when you can be reasonably sure that the tariff fad will be over in 4 years at minimum, 10 years max?

But guuuuuys, everybody's supposed to lie and make less money and become slaves :( if you don't do that, what's this last 50 years of political gamesmanship and duplicity and propaganda been for??

It’s also a huge expenditure for the business which, along with higher payroll costs, would be passed on to consumers.

Margins on Matel products have historically been high. Strictly speaking, they could still function as a business if they insourced the manufacturing and materials, paid prevailing wage rates, and assumed their workers would also be their clients. But the impact on profits would be enormous. The degree to which Matel could produce surplus waste and assume administrative overhead would be crimped significantly. What incentive do C-levels and board members have to make this kind of change?

Costs are going to go up weather they move manufacturing here or not so why not take the path of least resistance and just pass on the tariff costs?

The US isn't the only buyer of Matel products. Why bother insourcing to appease the current US president when they can pivot their sales to international consumer markets instead? Maybe they need to lower their prices to sell into markets into the lower-wage BRICS. But that's so much easier than moving their entire industrial stateside.

it’ll. never. happen.

why? because profit is why the corps exist.

Yes it's impossible

I realize it's a joke, but donvict and his shitstain crew have managed to now politicize not only nearly every other fucking thing, but now they have managed it for toys, too.

I mean, they managed to politicize the fucking weather, and that's on top of fact-based reporting, science, medicine, vaccines, social distancing measures, etc....

It’s such a crazy out of touch statement to make… mind boggling

he has been obsessed recently with explaining how "beautiful little girls" can just live with fewer dolls :-/

He is going to tariff Mattel because that's all he knows how to do.

I wonder if he has bothered to figure out what the word tariff means yet.

Easy: just set up labor camps and put any ”undesirables” there.

This is largely untrue. I have worked in manufacturing my entire adult life and in my experience people are very eager to do manual labor type jobs if those jobs pay well and provide stability. The problem is that most of them don't. It would make everything more expensive to pay everyone doing these jobs better but it would be worth it longer term by making a society that doesn't just rely on there being a constant supply of an artificial second class of people that can be underpaid and exploited with impunity. When people say "nobody wants to work manual jobs..." the implied rest of that sentence is "...to make the same amount of money as someone working retail."

I hate Trump and his idiotic tariffs, but this argument that we need immigrants to do all the jobs Americans don't want to do is based on the racist idea that Americans are too good to do these jobs- the reality is, they are simply not desperate enough to take them for the amount of pay that is being offered. It's a blatantly false narrative and it only serves to harm anyone left of Mussolini.

And the oligarchs want to both reduce immigration and re-industrialize?

No, the oligarchs want to bring in even more cheap labor from 3rd world countries to maximize profits.

Americans mostly don’t even want to do the manual labor jobs which have always been available in the US, like residential construction or picking crops.

Capitalism 101: When you don't have enough workers, you need to raise wages. Not demand a government bailout via the immigration system.

you will probably needs to get one ifs dyed rat hair first.

Ironically, the only toy that will be made in the USA.

Only 2 or 3 or 4!

The robots in China are cheaper, especially when there are tariffs to import them.