Employees of Etch-A -Sketch expected the closure to take place. The company had already moved production of toy lines to China, and most employees knew it was just a matter of time before EAS went too.

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Etch-a-Sketch was originally invented in Paris by garage mechanic Arthur Granjean who called it 'L'Ecran Magique', (the Magic Screen). The toy did not need batteries  and did not have loose parts which rendered it a great toy.  He took it to the International Toy Fair in Nuremberg in 1959. The screen did not ignite much interest until The Ohio Art Company took it on and started to manufacture it. Originally made by hand, mass production began in July 1960, and with television advertising, sales soared.

Confronted with sluggish toy sales, the Ohio Art Company lost money for two years running.

In December 2000, it took the strategic decision to outsource production of the Etch-A -Sketch toys to Kin Ki  Industrial, a leading Chinese toy maker, laying off one hundred US workers in the process.

Employees of Etch-A -Sketch expected the closure to take place. The company had already moved production of toy lines to China, and most employees knew it was just a matter of time before EAS went too.

Bryan Ohio a small town of 8,000 residents and also the home of the DUM-DUM hard candy suckers, has taken a cumulative effect of outsourcing to China. The tax base is eroding from a loss of manufacturing and a population decline. The local paper in Bryan, Ohio was full of notices of home foreclosures and auctions.

The rationale for the outsourcing was  coming from pressures to keep then cost of EAS under $10. Big retailers such as Wal-Mart and Toys R Us pressured EAS to reduce operating costs and overhead costs.  Unionized workers making 1500 a month were replaced by Chinese factory workers who made $75 a month.

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Main savings came from lower overhead costs for plan, maintenance, electricity, payroll and the ability to get out from the soaring costs of providing health benefits to US manufacturing employees.

December 2003 The NY Times painted a dismal picture of working conditions at the Kin Ki factory that manufactured the EAS. According to official Kin Ki publications : “ workers at Kinki make a decent salary, rarely work nights or weekends and often hang out along the streets, playing Ping Pong and watching TV. They all have work contracts, pensions and medical benefits.  Canteen offers tasty food and the ...

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