Hasbro announced that it will manufacture Play-Doh, one of its most iconic products, in the United states starting in 2018—14 years after it last rolled off the assembly line here.
The kid-friendly molding clay is currently made in China and Turkey. Those countries will continue to produce some of the supply.
The move comes as businesses see increased pressure from President Donald Trump’s administration to halt overseas production and bring it back to American soil, although the company has said the move has nothing to do with Trump. Instead, the company said it is ramping up production to meet an average annual sales increase of 20 percent.
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Moving Play-Doh production to the U.S. certainly bucks the trend in toy manufacturing. An estimate from the research firm IBISWorld puts offshore toy production at 98 percent.
Another reason Hasbro may be outperforming Mattel: Nostalgia.
Hasbro’s latest line of Star Wars action figures is going old school. Expect to see throwback figures of Princess Leia, Luke Skywalker, Han Solo, Darth Vader, R2-D2, Chewbacca and more later this year, decked in retro packaging.
Hasbro stock has jumped 20 percent since its most recent earnings call. Rival Mattel seems to be struggling, as its stock plummeted by 20 percent at the end of January.
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