It’s also a huge expenditure for the business which, along with higher payroll costs, would be passed on to consumers.
Margins on Matel products have historically been high. Strictly speaking, they could still function as a business if they insourced the manufacturing and materials, paid prevailing wage rates, and assumed their workers would also be their clients. But the impact on profits would be enormous. The degree to which Matel could produce surplus waste and assume administrative overhead would be crimped significantly. What incentive do C-levels and board members have to make this kind of change?
Costs are going to go up weather they move manufacturing here or not so why not take the path of least resistance and just pass on the tariff costs?
The US isn’t the only buyer of Matel products. Why bother insourcing to appease the current US president when they can pivot their sales to international consumer markets instead? Maybe they need to lower their prices to sell into markets into the lower-wage BRICS. But that’s so much easier than moving their entire industrial stateside.
Margins on Matel products have historically been high. Strictly speaking, they could still function as a business if they insourced the manufacturing and materials, paid prevailing wage rates, and assumed their workers would also be their clients. But the impact on profits would be enormous. The degree to which Matel could produce surplus waste and assume administrative overhead would be crimped significantly. What incentive do C-levels and board members have to make this kind of change?
The US isn’t the only buyer of Matel products. Why bother insourcing to appease the current US president when they can pivot their sales to international consumer markets instead? Maybe they need to lower their prices to sell into markets into the lower-wage BRICS. But that’s so much easier than moving their entire industrial stateside.