Looks like the struggling US economy is having a direct effect on toy manufacturers in China.
Declining U.S. orders already have contributed to the closure of at least 3,600 toy factories since the beginning of 2008, according to the Chinese government, leaving hundreds of thousands of Chinese workers suddenly out of work in this sector alone. Some of the shutdowns have triggered violent protests, a situation that could worsen if the Western recession drags on through 2009, as many economists are predicting.
The volume of Chinese toys passing through eight major U.S. ports was down 5.9 percent in the first nine months of this year, compared to the same period in 2007, according to economic forecaster IHS Global Insight, which tracks the information for the National Federation of Retailers. Toy traffic through the ports of Los Angeles and Long Beach, Calif., which typically handle more than half of Santa’s incoming booty, declined 10.2 percent, as measured by tonnage.
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