Lego Shortage For Holiday Season Expected By The World's Largest Toy Maker

Posted: Oct 23 2015, 2:47am CDT | by , Updated: Oct 23 2015, 2:57am CDT, in News | Latest Business News


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Lego Shortage for Holiday Season Expected by the World's Largest Toy Maker
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Parents could be in trouble this Holiday season finding the Lego set their kids want for Christmas. Lego warns of a shortage due to unexpected demand.

Lego is since 2014 the world's largest toy maker and there is no end in sight for growth. Lego announced earlier this week massive expansions of their plants in Mexico, Hungary and Denmark.

The Mexican Lego plant will be expanded for instance by 190,000m2 starting next month. Lego plans to hire an additional 3,000 works in the factory in Mexico by 2022.

These production capacity increases come to late apparently for this Holiday season. In an interview with Reuters, Lego spokesperson Roar Trangbaek said "We will not be able to deliver all of the orders coming from customers in the remainder of the year."

Trangbaek said that the demand has exceeded the forecasts of Lego and its retail partners. Lego is running its plants at maximum capacity to try to cope with the demand for Lego bricks. Lego did not initially go into the specifics which countries and which Lego products will be in short supply.

In an interview with MarketWatch, Trangbaek said the shortage to only affect select countries in Europe. He added that Lego is not expecting a shortage in the United States. The Legos for the American market is made in the Mexican plant mentioned earlier.

Each year some Lego sets are in short supply and hard to find. We see already several of the new Star Wars: The Force Awakens Lego sets out of stock.

According to the Reuters report Lego's sales grew by 18% in the first half of this year to $2.1 billion. This number sets them ahead of Mattel and Hasbro, with revenues of $1.9 billion and $1.5 billion respectively. Lego is not a public traded company and is owned by the founder's family.

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The Author

<a href="/latest_stories/all/all/2" rel="author">Luigi Lugmayr</a>
Luigi Lugmayr () is the founding chief Editor of I4U News and brings over 15 years experience in the technology field to the ever evolving and exciting world of gadgets. He started I4U News back in 2000 and evolved it into vibrant technology magazine.
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