American-made toys gain in popularity for now

HOLLISTER, Calif. -- Deborah Evanoff thought she'd traded her frantic Silicon Valley career for a lazier pace when she took over the low-tech toy company her parents founded in the late 1960s.

Instead, she's ramping up Arrowcopter Inc.'s manufacturing operations and getting a record number of orders from retailers in 11 countries. More people are buying the slingshot-like gizmo, which starts at $4 and — as the packaging proudly proclaims — is made in the United States.

As consumers look for alternatives to Chinese-made toys following a series of recalls this year, dozens of small toy companies are struggling to meet surging demand. Some owners report online sales up as much as fivefold from last year. They're hiring extra workers, expanding warehouses and adding extra assembly shifts.

"Every time there'd be a new recall this summer, we'd get a huge new order," Evanoff said as she watched contract manufacturers stuffing neon-colored copters, rubber bands and wooden sticks into plastic packages. "We didn't stop all summer long."

Experts say the boutique American toy boom won't last beyond the recalls, which started this summer. So far, more than 21 million toys made in China — from Baby Einstein Discover & Play Color Blocks from Kids II Inc., to Thomas & Friends Wooden Railway by RC2 Corp. — have been found to contain excessive levels of lead paint, tiny magnets that could be swallowed or other potentially serious problems.

Retailers such as FAO Schwartz Inc. and Toys "R" Us Inc. downplay the recalls, saying they aren't likely to dent holiday sales or significantly change their orders. About 80% of toys sold in the United States are made in China.

Executives at Mattel Inc. — which has had 20 million toys recalled — are touting improved manufacturing standards. Safety experts say American toys aren't necessarily safer than those made in China; Europe has the highest standards, but even there quality varies from factory to factory.

Experts say even if Americans produce several hundred thousand more U.S.-made Little Tykes, K'Nex or Rainbow Creatures, China will retain manufacturing dominance in the $22.3 billion toy industry.