Changes Loom for Lincoln Logs Production
Lincoln Logs, a beloved classic toy made from American wood, might soon face a significant shift. Pride Manufacturing, a factory in Maine that produces these iconic toys, is set to close in April. This closure follows the loss of its largest contract and the decision to pivot to making cigar tips for another company.
As a result, Basic Fun, the toy company behind Lincoln Logs, is racing against time to find a new manufacturer. Founded by Frank Lloyd Wright’s son, John, Lincoln Logs have been a staple in households for generations. Unfortunately, production of the brand, which has a market value of $10 million, is likely heading overseas, leading to anticipated price increases of about 10%, according to Basic Fun’s CEO, Jay Foreman.
Foreman expressed his concerns, stating, “We are desperately looking for vendors to manufacture custom wood parts here.” He hopes that someone will step in to buy the factory and its equipment, though the outlook for that happening within the year seems bleak.
This situation arises as many toy manufacturers are actively trying to bring production back to the U.S., considering the bulk of toys are still produced in China.
Demand for Lincoln Logs began to wane after the bankruptcy of Toys R Us in 2017, which shook the toy industry to its core. Foreman noted that prior to that disruption, annual sales were around $14 million and had been recovering until last year, when broader economic pressures began to take a toll.
The price range for Lincoln Logs is typically between $50 and $70 for a set of 120 pieces, which is quite a bit for some families. With the impending tariff increases on Chinese imports, the costs are projected to rise by an additional $5 to $7 this year.
Basic Fun, known for other classic toys like Lite Brites and Tonka Trucks, has started a 45-day search for a U.S. supplier but is also making contingency plans with Chinese manufacturers to ensure they meet holiday demands. The plastic components included in the Lincoln Log sets are currently sourced from China and packed in the U.S., using materials made by Pride Manufacturing. This factory has been producing the sets since 2014.
Interestingly, Lincoln Logs, for much of their history, were produced domestically, but production shifted to China in the 1990s to capitalize on lower manufacturing costs, with plastic parts being integrated around that time.
The impending closure will leave around 115 factory workers without jobs. Pride Manufacturing is owned by Center Partners Management, a private equity firm based in New York City. They stated that the shift in customer needs led to the decision to cease operations, noting, “this change in customer status necessitates the conclusion of this operation.”
That customer, reportedly, is John Middleton, a subsidiary of the Altria Company that produces premium cigars. Despite inquiries, Altria has not commented on the reasons behind withdrawing business from Pride Manufacturing, which was the only U.S. cigar chip operation. The chips they made, sourced from birch wood, are used in John Middleton’s Black & Mild Cigars, along with FDA-approved flavored wood chips.
