The Colorado Springs Gazette final

Supply chain problems hit charities’ holiday gifts for kids

Granting wishes to children in need faces biggest challenge in years

BY HALELUYA HADERO

With less than four weeks to go until Christmas, Kristyn Begari has been rushing to find enough doll styling heads to give to kids in need.

But, the purchasing coordinator for the California-based nonprofit Family Giving Tree says it’s been difficult to find them, or racially diverse Barbies or Disney princess dolls. Other charities that give to kids during the holidays say they’re also facing challenges finding enough gaming consoles, laptops and other electronic items amid the global shortage of chips used in cars, phones and other devices.

“I’ve never seen something like this,” Begari said. “Our biggest fear is we’re not going to get the quality of gifts that we want, or we’re not going to have enough in general.”

Attempting to grant thousands of holiday wish requests has always been challenging for Begari. But it’s been downright miserable this year as the global supply chain bottlenecks create shortages on many items, making it difficult to grant many holiday wishes for the 34,000 children and adults the organization expects to aid in the Bay Area this holiday season.

Some wholesale vendors have already informed her that purchases will not arrive — giving her the option of getting a refund, or buying another item. If a child doesn’t get their preferred gift, she said the organization will attempt to grant their “second wish,” or find another replacement item.

Similar worries are being felt across the country as Covid-related supply chain snafus — produced by clogged U.S. ports, a lack of workers to move the cargo and skyrocketing shipping costs — lead to empty store shelves and higher prices on some products.

The supply chain slowdown is one of the main reasons why donations of new toys to The Toy Foundation have declined by nearly 80% in dollar value this year compared to 2019, said Pamela Mastrota, the executive director of the group, which was formed by a toy industry trade association to act as an industrywide charitable collective for manufacturers.

The lack of trade shows due to the COVID-19 pandemic also put a wrench in their collection efforts for the second year in a row, straining their ability to get gifts for sick, impoverished or other vulnerable children who are in need.

Mastrota’s only hope now is if more toys are donated quickly. But such donations might further stress the profit margins of manufacturers who are facing high shipping costs and pressure to pass on increased costs to consumers.

Jim Silver, CEO of Toys, Tots, Pets & More, a toy industry review website, says charities are bound to see less toy donations from manufacturers this holiday season because many containers holding their products are stuck at U.S. ports, which have been experiencing record volumes of shipping containers as the economy recovers from the pandemic.

“There is going to be a shortage. Without a doubt.”

Silver notes small and midsize manufacturers who largely produce toys in countries like China are feeling squeezed by the supply chain problems more than larger ones. However, the disruption is also being felt at MGA Entertainment, the American toy giant which makes Bratz! and L.O.L. Surprise! Dolls.

Isaac Larian, the company’s CEO, says they’ve only been able to meet 70% of the demand for items because the company is waiting for hundreds of containers full of toys to clear the California ports.

BUSINESS

en-us

2021-12-01T08:00:00.0000000Z

2021-12-01T08:00:00.0000000Z

https://daily.gazette.com/article/281921661325956

The Gazette, Colorado Springs