LEGO shortage calls for factory expansion
Posted by TheBrickPal,
Probably as a result of yesterday's news, LEGO is calling for a production boost; an increase in both space and workers in their Mexico, Hungary and Denmark factories. The demand for products in the first half of 2015 was apparently higher than expected.
At the same time, LEGO is also going to be updating their moulding facility in Billund, and looking for more sustainable material for their bricks.
Work will begin later this year. For the press release, see here.
“Despite our best efforts, due to the high demand we are experiencing, we will not be in a position to deliver all of the further products that retailers are now requesting for the remainder of 2015 in several countries in Europe,” a LEGO spokeman, Roar Rude Trangbæk, said.
“It is an unfortunate situation, which we truly regret and we are doing everything to manage this unprecedented demand.”
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25 comments on this article
And not their China factories? uh huh.
Just build a factory next to me and save on shipping costs :-)
^^^ what factories in China? They do moulding in Mexico, Hungary and Denmark. They have another plant in Czech Republic (no moulding) and that's it.
@Plymp: If they don't do anything in China, why does the CMF packaging say the components are made in China?
@binaryeye: Good question. What Lego said about China (when announcing the plant that will be opened in 2017 there) was: "The LEGO Group currently does not operate its own manufacturing facility in China". They don't say they don't have a partner there. Though looking at the quality of Lego bricks compared to fakes from China I seriously doubt they do moulding there at the moment.
@CCC @binaryeye @Plymp: As I understand it, the parts LEGO produces in China are produced in a factory the LEGO Group is leasing, not one they built, own, and operate themselves.
LEGO parts ARE manufactured in China, particularly certain specialized elements. The Rock Monsters from Power Miners were produced in China, for instance, as were the specialized Serpentine head molds from the 2012 Ninjago sets. All parts from the blind-packaged LEGO Minifigures are produced in China.
The difference in quality between official LEGO products produced in China and fakes is easily explained — the LEGO Group just has a higher standard of quality than counterfeiters that are just trying to make a quick buck off of brands they don't own. You wouldn't expect a fake iPhone to be the same quality as a real iPhone, even if they are both made in China. Same goes for LEGO.
Perhaps when the LEGO Group opens their own factory in China, the quality of their Chinese-made bricks might improve even further, as they are able to take a more hands-on approach to manufacturing. The LEGO Group has plenty of experience running factories in countries other than where they're headquartered, after all. A lot of people are paranoid about the prospect of LEGO producing parts in China, but the quality of a factory's products depends not on its geographic location, but on the standard of quality of its parent company.
Anyway, good to see LEGO is planning these expansions to their existing factories!
I could be wrong, but I've been under the assumption that any small part packaged in its own "stretchy" plastic bag is produced in China. Salacious Crumb, Gimli's helmet, Elves hair pieces, etc.
Second year running for supply shortages. In 2014 it was Canada and parts of the United States that were affected.
If this is anything like last year, the major retailers, such as Toys R Us, Argos and Wal-Mart, should get their allotments, while the smaller, independent retailers will see their shipments delayed.
I'd recommend grabbing anything that's on a child's holiday wish list if you see it.
They could always come and establish a factory here in the US colony of Puerto Rico because we need the jobs.
@HearitWow , I agree. I think you are going to see a lot of temporarily out of stock and on back-order status lines in many LEGO sets this season. Because people forget they also have to start manufacturing for some '16 sets (if they are not already)
"Sustainable" material means even lower quality bricks. The bricks of today are a worse quality than Megablocks of a few years ago.
^I have some Megablocks from nearly a decade ago and trust me LEGO quality is still WAAAAY better than MB.
@xboxtravis7992: Well, I've heard (and seen) that Mega Bloks quality is a lot better than it used to be back in the 90s and early naughts. But judging from the Mega Bloks SpongeBob SquarePants figure and brick-built catapult I got at a Toys 'R' Us giveaway event last year, it's still not on par with LEGO. Clutch power is a bit all over the place... some parts attach too tight, others attach too loose. LEGO quality is way more consistent.
@ CortezTheKiller.
LEGO hasn't even started producing parts with that program to my knowledge yet, so I think you're jumping to conclusions there. I've gotten Mega Bloks and other clone-brand parts in job lots in recent years, and I can definitively say that no clone brands have come close to comparing to the quality of LEGO bricks. How would they? To make something cheaper (and in a smaller quantity), pretty much the only way is to use cheaper resources and equipment.
^ Good point on the boxes, but not everyone has easy access to online instructions.
We don't know that the new bricks will be inferior- I doubt LEGO would risk losing their high customer satisfaction for it.
About destroying prime food-growing land, I have one word: Ethanol.
^Yes. Say somebody who doesn't have an iPad decides to get a small LEGO set for themselves, and it doesn't come with any instructions? LEGO tried that back in '05 with three microscale Factory sets, and the problem is twofold. One, if you received the set but didn't have internet access to get the instructions, you're screwed. Two, after the instructions got taken down, the set is still available online from bricklink and stuff, but you have to really scour the net to get the instructions.
So long as the LEGO shortage doesn't affect chain stores in the Midwestern United States or the official online shop, that's not a problem for me. Bricks even lower quality then they already are would be a serious problem, though.
Why does it always seem like the only people in the world who don't understand how high of a demand for LEGO there is are the people who work for The LEGO Group?
.....No one finds that a bit strange? As HearItWow stated, this is the second year in a row that a shortage has occurred. As I remember it, it was also plenty difficult to get a hold of the latest sets during the holidays in 2013 in my area as well. So why would TLG not have properly adjusted for this error, and avoid missing out on even more massive sales? At least 4 factories out there, correct? Each of them capable of producing millions of sets per year, I'd imagine?
Pardon my ignorance, if that's what my problem is here, but I don't understand why they haven't learned from the past, or why the currently existing factories aren't enough if they're properly time-managed.
I understand people are afraid of what they don't understand but it's really too early for that.
LEGO is currently made from 'plant based organics' commonly known as 'oil'. There are several existing technologies to make oil that do not involve putting plants into the ground for several million years (or do not involve plants at all). Such methods would be considered 'sustainable' even if the end product is not bio-degradable. Current LEGO is very recyclable though so a sustainable model does not necessarily mean bio-degradable products.
If LEGO does not find a new way of making their bricks then their business model will be unsustainable, i.e.: LEGO will go bankrupt at some point due to availability of their resources. I don't think any of us would want that.
The program that LEGO announced is a 10year research program (iirc) so, again, if you get stressed about it now already you will be in it for the long haul.
Using more sustainable plastics doesn't mean moving away from ABS. There's a bunch of by-products and emissions in the plastic making process, so they are most likely looking for a greener process to get the same result.
^Agreed. LEGO has always delayed on new sets in recent years. My local TRU didn't get S14 minifigs till a full 20 days after the release date.
Pro: Australia is always overstocked anyway so there won't be too many issues.
Cons: Australia already has to wait an extra two to four months to get anything so it may be a longer wait.
Very happy with pursuing sustainable products and maintaining excellent quality, the two are not mutually exclusive. As for the high demand, that's great - more and more people are experiencing the joy of Lego.
It seems to me like Lego itself is adding to the shortage of demand with the increase of new themes and sets.
It's better to have a shortage than to have a saturated market with product jamming the shelves. Less waste and potentially reduced prices at retail, and it artificially over-values your product. Apple does this all the time.
That's nothing new. Shortage in lego sets before christmas ALWAYS existed here in Poland. ||For example you can hardly find any AIRJUTSU sets.