We ran the “2022 Looking Forward Survey” because we wanted to know what was on your mind for the coming year. 225 of you filled out the survey, the biggest response in our years of conducting surveys. Here is what we learned.
Question 1: What are your top 5 concerns about 2022?
Respondents listed the top 5 concerns in this order:
Supply Chain (76.4%)
Freight Rates (71.1%)
While Coronavirus is a concern for more than half of you, it was nowhere as worrying as the supply chain, freight rates, and inflation.
What didn’t concern respondents? Here is a list of the bottom five concerns:
Global Warming (15.6%)
What I found a bit worrying is the small percentage of respondents that were concerned about green issues like plastic in the ocean and the carbon footprint. What has me concerned about the low response is that it indicates that we are out of touch with children and their parents, who are very much concerned. A petition in the UK, started by school-age girls, forced Burger King and McDonald’s to change their positions on the use of plastics in children’s meals. We need to get in sync with our end-users and make our impact on the environment more top of mind.
Question 2: How much do you predict your cost of goods will increase in 2022?
56% of respondents projected that their costs will increase 10% in 2022, while 23% anticipated them to increase by 15%.
Question 3: How do you predict the toy industry will fare in 2022?
50% anticipate that toy industry revenue will increase in single digits. Another 28% predict the year to be flat. Only 7.6% expect a double-digit increase this year. Considering that the same survey respondents anticipate prices increasing 10%, the anticipated net results for 2022, once you factor out inflation, do not look very robust.
Question 4: How do you predict the toy industry will fare in 2022?
Respondents were moderately more optimistic about their anticipated results than they were about the industry as a whole. 22% expected to finish the year in double digits, while 45% anticipate finishing up single digits.
Question 5: Will container prices increase in 2022?
58% of respondents believe the worst is over, and container rates will remain where they are. Another 23% expect them to continue to move up. Only 17.8% expect them to decline.
Question 6: Are you optimistic or pessimistic about 2022?
We are a very optimistic industry but 52% of those who responded say they are neither optimistic nor pessimistic. 32.4% are optimistic while 15.6% are pessimistic.