Does outsourcing to China still pay?

Fisher-Price recalling 1.5 million toys

NEW YORK (Reuters) - Mattel Inc. is recalling 1.5 million Chinese-made toys worldwide because their paint may contain too much lead -- the latest in a deluge of product safety scares that have tainted the "made in China" brand.

The recalled toys made for Mattel's Fisher-Price unit include popular preschool characters like Elmo and Big Bird along with dozens of other items.

They were made by a contract manufacturer in China using a non-approved paint pigment containing lead, Mattel said on Wednesday.

There are hidden costs to outsourcing and I have seen many of them. When a manufacturer outsources a product they lose control of the final product. When it's outsourced overseas even more control is lost. How much money was saved and then how much money will be lost by Mattel as a result of this. And it's more than scraping some toys - it is a PR nightmare. Made in China is rapidly becoming a liability regardless of cost.