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K’NEX CEO Michael Araten on the company’s effort to return production and jobs back to America.
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Made in the US that it's not really something we hear a lot especially.
At a -- places the toy industry where many of the toys sold in the US are produced overseas but one toy maker connects.
Has been bringing most of its manufacturing back here that the US something the big guys like Hasbro Mattel are not doing.
Joining me now at a first stop Fox Business interview with -- CEO president.
Michael -- to talk about this and -- Michael specifically first how many jobs have you brought back and why here in the US.
-- -- it's a good to -- would do well why here in the US -- first is because.
It's clear that -- clear to us about three or four years ago that American consumers are really were looking for things made the USA.
And so we want to be able to do that we also wanted to be able to strengthen our own company and her own community by.
Bring production back and then we knew if we did that would also be able to create jobs so as a CEO of the business owner.
Part of my responsibility is to my people to my community my country and so because of that reason we said if we bring all these production back love to have more jobs -- -- does Europe businessman though right -- -- may in the end it.
If it's if it's more financially responsible like gas for -- -- your company to do something overseas and he would do it so what is it about.
Having things done here in the US that really makes its -- Sure well with some of patriotic capitalists is what I -- so and so yes we have we have to have we have to have a profit motive and we have to be able to make a profit but what we able to figure out.
Is that when you on break the entire supply chain and look at the total supply chain costs.
There's actually trying to handicap of somewhere between fifteen and 30% depending on the industry where let's say let's say these parts here and I'm looking at the we made our -- United States.
Might look like they're 5% or 10% cheaper in China but once you factor in shipping and double management and extra labor over there.
You those savings are quickly eaten up.
Especially when that what are your big markets is here if one of your biggest markets -- North America -- markets a huge advantage tremendous factor there is totally that if this.
Read about wanna get to that because this picture is if house for a comes up with the idea we've got them on the show great company but if -- collect the -- idea.
Because we know how fickle children are that of one minute they want this on the next its Angry Birds.
They can't turn as quickly on a dime to get it all made and then shipped all the way across overseas vs what you guys could do correct.
Were you part of the reason Hasbro picked us to do tinker toys -- realized tinker toys last year for the first time in five decades in this country.
Is exactly for that reason so we set for the Christmas season about August September for back to school.
And were able to reload the shelves.
Because of exactly what you said we're making the -- on demand here in our factory in a turnaround time -- a matter of weeks as opposed to a matter of months from coming from overseas were.
Showing Angry Birds now let's talk about that because that is -- one area where you've had to keep that in China for example that the head of these angry bird toys because of what a rubberized.
-- -- -- -- -- -- -- -- -- was done a better it's about more touches so are you touched on this -- their advantage.
And so it could injection molding a single color molding and were expert at that -- highly automated we've got robots and all and were operating point 47.
That item as you can save Crowley has 456 different colors on other requires more touches.
We're working though we're about 95% of the parts -- in the US now up from under 50% for years ago and we'll get to a 100% over the next two or three years.
So at what I would say the business owners is once you make a decision.
That it should be made -- for all the reasons I touched on yet then you look at your supply chain and find vendors that can do it can -- vendors.
They can do it.
OK so but let's not forget one could launch that is an iconic toys -- every kid should have you guys make them here in America.
Hatfield Pennsylvania the president has visited your manufacturing area.
Look at one of the things we know is that all you need is one super hot -- You have what and that's -- 30000 dollar robot that we wanted to show people because it does charitable -- really quickly but.
How do you get that one hot -- that suddenly every kid says I've got to happen.
You know we call is building worlds kids alone we focus on what kids really love.
Would you every search and that's why we we launched and rebirth last year while we launched marry -- -- the year before that.
What we'll be watching other things that kids are really into that you know when I'm at liberty to talk about to -- -- -- you first fearless analysts.
It is those are exactly the kinds of things that we focus on is building -- kids love -- when you do that everybody wants it.
We will show it proudly for you Michael please come back to us for some Fox Business when you ready to make that announcement thank you so much.
Surely is great so -- real -- and won't be first in line right David because you know native Americas -- great that we're not -- -- -- -- -- that is why not -- you see the face on that -- by the way how does.
-- they put a face on the robot are.
