Lego breaks ground on first US manufacturing facility
manufacturingdive.com
manufacturingdive.com
> The first LEGO factory in Enfield opens in 1975 – a packing facility for LEGO DUPLO® bricks. The elements to be packed arrive from factories in Billund, Denmark, and Baar, Switzerland – transported to the US in container ships.
> The Enfield factory is constructed as a “conversion ready” building with open steel structures which can quickly be converted from warehouse to packing, packing to production.
> In 1980, LEGO Systems Inc. sets up its own molding shop in Enfield, starting with 10 molding machines. The factory is equipped with state‑of‑the‑art technology. One of the features is an air‑drying system for plastic granulate, which must contain no moisture when it enters the molding machine, as the finished bricks would otherwise fail to meet the LEGO Group’s high-quality standard.
> In November 2000, the LEGO Group announces its decision to close the molding plant in Enfield and in future mold LEGO bricks only in Europe. Shutting down the molding facility is a step in the LEGO Group’s plan to improve its financial results in the years ahead – preliminary accounting figures for 2000 are negative.
Before that, there was a licensing agreement with Samsonite.
[1] https://www.lego.com/en-us/history/articles/e-production-of-...
Large companies don't care about employees one way or another, if you're lucky you're a row in a spreadsheet somewhere and woe to you if your row, the column where you're totalled or the entire sheet ends up in the red.
They had no way of knowing Bionicle was going to save the company.
https://www.popularmechanics.com/culture/gaming/a31152877/le...
How did I miss that?
I hate to say it, but Lego is probably right here. CT and MA are very similar from a cost-of-living perspective and, all other things things being equal, Boston has a larger and more diverse talent pool, and is a more attractive place to live for retaining that talent. I suppose you could extrapolate that to state policies, that the state isn't doing enough to make CT an exciting place to live but that might be a bit too uncharitable. I say this as someone who grew up there; my mom even worked at the Lego plant for a brief period in her 20s, and liked it there. As a Lego-loving kid, I always took pride in the fact that all that magic happened so close to home.
[0]https://abcnews.go.com/US/wireStory/lego-move-north-american...
What does that refer to? Honest question, never lived in the USA. Thanks for explanations!
- Lego operates multiple $1B+ factories around the world - they are not just a design and marketing company
- 1400 manufacturing jobs in Virginia expected - not just an automated thing. Anyone know what changed economically to justify the high US labor costs? Particularly compared to MX
- 100% Carbon neutral via on-site Solar in Virginia (not particularly sunny). No offsets shenanigans. Oil prices might be too high today if this is about to happen to most new factories in the world.
I work with solar, not directly but we turn investor money into solar plants, and part of that is getting the most money out of them as possible. The amount of sun obviously matters, but the temperature matters more. The hotter it gets the less efficient the solarpanels become at generating electricty.
The efficiency starts dropping by around 0.5% for every degree celcius above 25 degrees celcius. In hotter climates, you can build solarplants differently, similarly to the one in that james bond movie I believe, not too sure as we don't do that, and I'm obviously not into the engineering part. I mean, I've read the manual of some solarinverters, but that was to get data out of them. Aside from that, solarplanes do actually generate power on cloudy days, not as much, but the only thing that really stop them is snow. The coolest thing about solar, is that it's very predictable. We can basically forecast our budgets for decades to come, because we know exactly how much energy we're going to be producing each month, and with the advances in storage, you'll soon be capable of storing excess power for nights.
Anyway, areas with 10-35 degree celcius are often better suited for solar power than hotter areas with more sun. That's not to say you shouldn't build solar in hot areas, but if you're planning where to put your solar powered factory down, you're likely going to take that into account. Along with a range of other things. I'd wager that logistics and taxes were more important for Lego.
https://www.guinnessworldrecords.com/world-records/100909-la...
It's a paid ad for LEGO, not a serious record.
Guiness has always been a half-commercial silly enterprise. It's literally founded by a beer brand to resolve pub trivia arguments.
No it is, in actuality, a marketing organization. They make all their money selling records. Their business is contracting with companies to come up with a marketable record, and then "observing" the client breaking that record, and then publishing that record. It's no different than those "award" companies that exist only to make up new awards to give companies.
It's the same as when JD power gave Chevy an award for "Highest Initial Quality", as if there is any customer value to a car that starts the best and immediately degrades.
Oh, those are the same Guinness! I always wondered.
My understanding is the US:
1. Is more politically, economically, and frankly physically secure than Mexico.
2. Has cheaper energy
3. Has a better-trained manufacturing workforce for the kinds of machine Lego is gonna use.
I mean look at the millennium falcon.
https://www.lego.com/en-us/product/millennium-falcon-75192
https://i.imgur.com/vsxVnSJ.png
ages 16+
When I think of fancy lego, I think of something like this https://www.lego.com/en-us/product/lego-medium-creative-bric... because it has wheels and stuff, not just bricks.
I would have imagined "regular" lego was just different sizes of bricks, not even a sloped "roof" brick or wheels.
Also I think "made in USA" might help sales in the US and at the very least calms investors?
LEGO Group A/S remains privately held by the family that started it in Denmark.
* Does the cheaper energy come into play with such a large onsite solar system?
* (From the point of view of a manufacturing company opening operations in the us) Does the US currently have a surplus of well trained manufacturing workers? I hear a lot of factory management/executives still complaining that the skilled labor they need just doesn't exist.
2. That's probably true, but the US labour market is simultaneously huge, flexible, and well-educated. That gives it an advantage over most competitors.
Legos are made out of petroleum
If the question was "what are Lego made of?" then this answer would at least make sense, but that's not what the question was.
For what it's worth, Lego has used a lot of different materials over the years, and not all of them have been petroleum based. To be fair, the majority of their new products are made from petroleum based plastics, including ABS (Acrylonitrile Butadiene Styrene), polypropylene, MABS (Methyl Methacrylate-Acrylonitrile-Butadiene-Styrene), PA (Polyamide, aka, nylon), POM (Polyoxymethylene), PE (Polyethylene), MTPO (Metallocene Thermoplastic Polyolefin), SEBS (Styrene-Ethylene-Butylene-Styrene, the material used for "rubber" tires and similar), and PET (Polyethylene Terephthalate).
There are efforts being made towards replacing ABS with recycled PET. Some kits may already use recycled PET.
In Mexico you would be lucky to make $5/hour.
If this lets them source much of the plastic locally, it will save on millions of boxes being shipped across the ocean. That’s a huge reduction in carbon, even if the local manufacturing costs a bit more.
Based on prices I've seen shopping for my nephews they seem to be a luxury brand now that can afford to. Lots of elaborate and expensive sets sold for $50-200. In my day they were closer to plain bricks.
I think there were jet packs in the 1970s, too. But I never knew anyone who owned one.
But that's still 30 years ago so Lego has been fancy pieces and custom kits for a couple generations of kids now.
You can get a 790 piece big box of Lego brand plastic building blocks on Amazon for $35. These types of collections tend to end up in yard sells, or passed around extended families because they last longer than a single childhood. The none-fancy Lego branded blocks still exist, and are still a common part of childhood in America. Lego just doesn't have to market them as hard, and the sale volume is naturally lower.
This [1] from LEGO Movie specifically plays on the 1980's space sets, for example, and I personally had quite a few of these [2] sets in the early 80's.
[1] https://www.lego.com/en-gb/product/benny-s-space-squad-70841
[2] http://www.doubledumbassonyou.com/2016/02/19/lets-enjoy-a-lo...
> If there’s one big gripe common among brickheads, it’s that the prices of LEGO sets are quite lofty (plus maybe not enough spaceships). But two disparate people interested in the plastique fantastique eschewed conjecture in favor of hard data, and found that LEGO prices scale linearly with piece count, and that on average, prices of sets have actually remained constant over the last couple of decades.
https://nerdist.com/article/notoriously-expensive-lego-price...
But LEGO has always favoured pieces that even when they look very specific usually have a significant level of reusability in other contexts. Hence "pointless" pieces that aren't actually pointless because their appearance is sufficiently generic.
E.g. you can still buy loose bricks from LEGO, so can make it as simple as you like. If you want basic stuff packaged up, the LEGO Classic line has sets starting very small that consists of a batch of bricks and a small set of themed special parts. On the UK site at least they also have more than 500 sets under 20 GBP/25 USD (you can search by price) including a number under 10 GBP / $12, but the majority of these sets will be full of special parts simply because there's little point in packaging up the same small selection of basic bricks in umpteen different sets.
Overall, the price per piece of LEGO varies greatly by set (average per category of set varies from less than 20 cents to nearly 2 dollars per piece) because of different weighting of types of pieces, but the inflation adjusted cost of the basic/cheapest pieces have remained consistently stable [1]
I don't know much about solar panels, but just looking up sunshine hours it seems Virginia has a similar amount as Texas? And more than double as Billund.
I don't imagine this will have much impact on oil as the solar is offsetting electricity from coal/gas/nuclear/etc.
I appreciate no offset shenanigans but did they factor in the fact that their product is made out of petroleum?
Not breaking down in landfill doesn't really matter as long as it doesn't leech pollutants into the water table or somesuch.
While Legoland still exists, it's now a license and the parks owned by a separate company
They've had their ups and downs over the years but the value add on 1 KG of ABS to sell for >> $200 is such that the plastic bit is almost an afterthought. Without the StarWars franchise and discovering adults rather than kids as a market Lego would be in an entirely different position today.
No mention of exporting kWh during the summer days and importing during winter nights?
Still good as every kWh of solar is a kWh of gas not burnt.
Almost certainly a great deal of this.
But
> > No offsets shenanigans.
Means they're not entering some shady arrangement with someone else that is doing green things and doing accounting magic to claim it's about the same. It's much harder to play games when you're talking about netting zero on-site.
> Still good as every kWh of solar is a kWh of gas not burnt.
This is becoming much less true in many places with a lot of solar, e.g. California.
The lowest I see in thee last week was 3.1GW of natural gas for CISO. Similar amount to the lowest gas usage last June and July (2.7GW I think on June 19)
https://www.eia.gov/electricity/gridmonitor/dashboard/electr...
Because the grid is, fundamentally, still storage-starved (though that's been improving in recent years), even with export the CA energy companies run into grid over-saturation problems on clear, sunny days. Eventually losses catch up with you pushing the power geographically far enough; they couldn't, for example, power the entire United States off of enough California solar.
So I naively suspect the issue is either exporting just saturates the adjacent grids too or other power companies are loathe to crash their prices by letting their grids saturate and therefore use whatever restrictions are allowed against exporting to keep CA's surplus off their grids.
https://www.virginiamercury.com/2023/01/12/youngkin-halted-f...
https://www.virginiabusiness.com/article/democrats-call-out-...
He said that supporting China's venture was not in the best interests of the U.S. in terms of security.
When the Lego factory was announced,
https://richmond.com/business/local/1-billion-lego-factory-i...
there wasn't a word anywhere about that proposed battery factory.
For too long US builders have been subject to the geopolitical risks of Denmark, the Czech Republic, Hungary, China, and Mexico.
This is a strategic raw material, without which trains, helicopters, fire engines, pirate ships, and hospitals cannot be built. To say nothing of the dependence that US media IP has on continued fresh brick availability.
It's good to see US manufacturing coming back!
As soon as they finalize the phrasing of the declaration and approve it through committee, probably in the next few centuries, all hell is going to break loose.
You can't sell a $600 display model(which is a ridiculous price in the first place) with very visible gate locations from the molding process and uneven colors. These are purely caused by cheap molds and plastic mixes - it didn't used to be this way, but somehow they decided that they had to start jeopardizing their good reputation for some cheap gains.
I am in my 30s and I had never seen a LEGO defect, and I have seen quite a few bricks. In the past year, I have seen several in-person among the toys I've bought for my kids, and several more anecdotally around the internet.
Now I even see it here on HN.
the LEGO brand had an unassailable, invincible reputation for quality, and now, for what seems like the first time, that is being called into question?
I find this fascinating and worrying. Are all good things destined to cheapen and collapse in search of short-term profits eventually?
I am however, not sure that it’s entirely a cost saving measure as LEGO sent me a replacement kit no questions asked in both situations. It seems more like they are switching manufacturing techniques and working out the kinks, or I would have expected needing to provide some sort of proof of the issue
It's so easy to open a plant in the US and then let them run it like a US company instead of a good company.
(And sure, Lego has has its fair share of employer scandal, but nothing on the level of US worker exploitation. So far)
What is your salary? Salary transparency empowers us all.
>Current: Labor activism.
lmao
Most software engineers get marginal pay and benefits - nothing like FANG or whatever it is now get.
Back in the 60s/70s the company Samsonite had a license from LEGO to make (or at least package up) LEGO sets right here in US facilities. I know this for a fact because when I was a kid my father worked for Samsonite. He would often bring home bags of loose LEGO that he got free at work. Excess, floor spilled, perhaps flawed beyond tolerances, test batches, or simply perks for employees, etc.
We did buy a few sets here and there, retail. But the vast majority of my childhood LEGO collection was built up from these endless bags of loose unsorted LEGO my father brought home at the end of his work shifts.
Proof: https://www.google.com/search?q=did+Samsonite+make+LEGO%3F&o... https://www.lego.com/en-us/history/articles/e-production-of-....
LegoLand California has a molding machine slowly making bricks, which I guess technically is a factory.
But some pieces were truly made in the Samsonite factory in Denver, using molds provided by LEGO corporate. I imagine the pieces that LEGO felt were most IP sensitive or tolerance critical were shipped in.
Welcome to the club.
I don't like having to check all the pieces in a themed set are present when putting them back in the box after my child's finished with it. It's difficult to reuse the pieces for other ideas because I can't just commingle them with other sets because finding the pieces again to build that themed set would be more difficult.
Just following instructions has limited value anyway.
Lego occupies the high-end market nowadays, where you pay $1,000-$2,000 for a franchise set (Harry Potter, Star Wars) that you can display in a glass showcase. You'll get robotics and some smart app functionality, along with a devoted following.
If you just want plastic toy bricks to let your kids' imagination run wild, there are alternatives.
I guess received gifts would be a problem, but it seems presumptuous that your way of doing lego is the right way.
You can never have enough Lego. :)
And then later, the lego piece waits for nightfall, and crawls out from the dark nook to the middle of the most inconvenient walkway for its moment to strike.
I had far too many LEGOs as a kid, and left them around my room like a minefield. Did I step on one? Oh, no. I was jumping on my bed and jumped off when told to stop by my parents and unfortunately one ankle landed on the corner of a LEGO building I had made. A structure build like a little plastic brick shithouse, apparently. The corner gouged a nice right angle cleft out of my ankle a couple inches long. Hurt like the dickens!
Three (anecdotal) things i've seen with Lego:
> Its a toy that old and young can play with together which is semi-intelligent/challenging. Parents and Grandparents seem to be the driver of sales for the physical product rather than the kids.
> They have brand deals with other popular IP which extends to Movies and video games, this is where you get your age 0-16 sales via brand recognition.
> The 30 year old man child demographic seem to bloody love this stuff. Think of it similar to lightsabers, Funco pops and novelty t-shirts.
There were some threads on HN if you are interested.
Kind of make sense because a lot people who played with LEGO in their childhood in the 80's / 90's are now at the age where they are more likely to have disposable income and get back into the hobby.
So they are offsetting all emissions by using solar power? Or is the solar a tangible bone to gnaw on while they make the typical meaningless moves like sponsoring a forest somewhere?
Why do you think forests are meaningless? They lock up some carbon, and produce some oxygen, and also usually lower the air temperature around.
I didn’t say this and don’t think it.
There are other brands that are just fine, but you will occasionally get missing pieces, poor fitment, poor/strange construction etc... With LEGO you'll not get any of those (except the occasional strange construction).
I used to buy ~50/50 LEGO/Clone, and despite improvements in clones, it's 95/5 now. The LEGO experience is simply disproportionately better relative to the cost.
It's simply worth it.
signed, Owner of A LOT of of LEGO kits/bricks _and_ clones.
Also, even if the unit cost of injection molding plastic might not be super high, the cost of making the molds is. I've heard discarded molds are used in the concrete for new buildings as a way to know where they are and ensure they're not suddenly in the wrong hands (although that might be a rumor)
Re: strange construction, I would actually posit that you will not get any strange construction because _they have laws against it_[1].
1. https://gameofbricks.eu/blogs/news/illegal-lego-building-tec...
The free market is clearly failing here.
Raw material cost is not a good proxy for end user value of finished goods.
Well, sure. But you aren’t including shipping costs, storage costs, training costs, labor costs, marketing costs, office costs, employee costs, research and development costs, legal costs, patent licensing costs, wasted material costs, environmental costs, electricity costs, packaging costs, margins for resellers, distribution costs…
The price of the iphone is a good example. All the costs that you name exist, but they are completely irrelevant. Apple sells the iPhone for a thousand dollars because enough people still buy them at that price.
Office costs? Those are going to the office owners, who pay themselves. Patent licensing costs? Those are going to the patent owners, who pay themselves. Wasted material costs? Those are going to the material producers, who pay themselves? Electricity costs? Even those are going to the power utilities, who pay themselves. Power utilities pay workers to maintain the power network and buy equipment from manufacturers. Those manufacturers pay themselves. Packaging costs? Those are going to the packaging manufacturers, who pay themselves.
Even the costs of extracting raw materials from the ground? Those are going to the mining companies, who pay their employees to extract the materials, and to the companies selling them mining equipment, who pay their employees to produce the equipment.
There's also something to be said for having such a dominant, established brand. Lego is a cultural icon, beloved by multiple generations. Picking up a knockoff kit is sort of like taking your kid to a random local theme park instead Disney World. While in theory the two options have similar features (rides! characters running around in costume!) they are of course not the same.
This is the real genius beyond the manufacturing (which other comments are correctly praising). Lego was/is the only brand that gets to make, e.g. both Mikey Mouse and Bugs Bunny, both Marvel and DC, etc. By making Lego versions of those properties, they've convinced those enormous IP holders that this does not compete with other products; Disney can't make Lego Star Wars themselves.
Lego's corporate accomplishment is to have elevated themselves to the status of a platform. And doing so while their product isn't software or hardware is pretty unique.
Fortnite does this too. They have DC and Marvel, Naruto and DBZ etc.
The plastic parts are more than just generic shapes; many of them are custom and designed for the specific kit. The plastic itself has a good feel and is durable.
The kits are unique and must have required numerous hours of research and development, prototyping and user testing.
The documentation is extensive, high-quality and complete. In addition to the instructions, there is nicely researched and presented material about the subject of the model.
If anyone is reasonably able to come up with a process to compete with the sum total of all of these elements, I wish them luck. I would also like to invest!
With Lego, it's surprising how often the parts are NOT designed for a specific kit.
You can look through the parts list at the end of the instruction manual. You'd be surprised how often they've re-used parts you'd think are specific to a kit. With Saturn V in particular, I was SURE the fairing must be a part specific for that kit. Turns out it's the spire from a Hogwarts castle kit. Okay, so that's the only other kit it was used, but still..
If you look at clone kits, they often have more kit-specific parts. I think this is counter-intuitively a part of a strategy based on low-cost. They spend less on extremely precise plastic molds, and designing a kit-specific part can make it easier for designers. They don't have to spend a lot of time thinking of creative ways to re-use existing parts. They don't need to have knowledge of obscure parts they could re-use either.
> The documentation is extensive, high-quality and complete.
And it's easy to find them online if you've lost them, and you can easily find missing parts of bricklink. So you can dump all your Lego in a box, save it for your kids, and be sure that they can still be used, and that you can rebuild the sets if you want.
I saved my Lego from my childhood. I recently took them out to play with my kids and they're still perfectly good. The only thing that doesn't match with modern Lego is the electric stuff.
OK, that is interesting.
I wonder if and or what the software used by kit designers looks like? Does Lego have a custom CAD system that references the catalog of existings parts? Are they any Lego employees here that are able to comment?
Mildly famously, frogs have been used for all sorts of things:
The other brands also don't have the same brand deals, I can't get an X-Wing set from Mega Bloks, for example. Though notably you can only get Pokemon sets from Nanoblock, and the experience of assembling one will make you appreciate the work LEGO puts into their instructions and manufacturing precision.
I remember trying to play with my friends megablocks as a kid and they just wouldn’t stay together well
There are also some Chinese companies making decent compatible bricks now
Those patents only recently expired, which is one of the reasons they pushed so hard into licensing to distinguish their brand.
Where the FUCK are they all? microplastic in the environment, no. it wast towed outside the environment to another environment where there are just fish, birds, sea and lego...
anyway... as much as I love lego, they need to curb their roll on the plastics they put into the environment. No, not that one. The one where the lego doesnt fall off.
Seeing as they're expensive and the individual pieces have tons of value, people often resell them or donate them. Or even for those who toss them in the garbage, they are buried in a landfill. But it's hard to think of any kind of plastic that actually gets reused more than Legos are. My nephews are now playing with the same Legos I played with 40 years ago, together with some new sets. Not a lot of toys (or objects generally) you can say that about.
They're not a major concern for polluting the environment. The kinds of plastics that are of concern for pollution tend to be food-related (bags, utensils, lids) which people actively use and lose and discard outdoors (and blow away from trash cans etc.) and plastic commercial fishing equipment which is similarly used, lost and discarded in the ocean.
Get some Alibaba bricks and you'll see right away.
So sure the plastic pieces are easily reproduced but clearly Lego does great work on architecting some really cool designs. (I have no affiliation with Lego company to be clear)
Consider Andrea's Theater School as well (https://www.lego.com/en-us/product/andrea-s-theatre-school-4...) though it's a little pricier ($100)
I didn't downvote your comment but there does seem to be competitors unless I'm misunderstanding this list: https://en.wikipedia.org/wiki/Lego_clone#Brands
It's just that the LEGO is the most well-known. Probably due to the quality plastics, licensing deals (Star Wars, Marvel movies themed kits, etc), famous advertising campaigns, and so on.
I guess Lego has that Optimus prime set now, so maybe not exclusive to transformers anymore.
Others can copy lego (with less quality) but the licensing deals protect them. Very wise.
Star Wars' Kenobi TV show had this sleek black ship to transport the Imperial Inquisitors. Lego made a set of it. No other toy manufacturer has, so if you want to play with your own Inquisitor shuttle, Lego is the only choice. Why, I wonder? There are Star Wars toys that are not Lego, so why are those toy makers not jumping on the opportunity? I honestly don't get it. Unless Lego has a deal with Disney to be the only ones authorized to make toys of certain vehicles/scenes/characters.
I think that engineering like Lego is gorgeous in and of itself. Like a Swiss watch at scale.
2) Leader in terms of quality
3) Good product design and successful branding deals
4) Difficulty of starting a dedicated competitor includes high startup costs (mold making is veeeery expensive)
5) There are competitors, but since startup costs are high even they aren't super cheap, and some have quality control problems, not as much piece variety, etc.
I've been playing with them for thirty years. Same set thirty years ago has the same quality and matches perfectly to the identical pieces purchased today.
Despite different types and audiences the quality remains.
(That said, you're probably better off buying second-hand, Legos don't really spoil with age.)
Btw Aliexpress has countless chinese fakes.
There is Mould King, Cada, Bluebrixx which also have more decent sets but you need to do your own research and specific sets. Newer sets are generally higher quality than older ones as Lego competition as drastically improved in recent years.
The quality of off-brand is way up in the last 20 years but it’s still not the same; they run the molds way too long.
It's not great for adults -- although my first time there was when I was 23 and childless and I loved it.
However, it's fantastic for my 6 and 8 year old, and as their parent I get extreme joy watching them have so much fun, and it's entertaining enough for me to not get bored.
Though compared to say, Disneyland it’s certainly less built out.
A lot of parks closed rides and such during COVID. I wonder if LL did that too.
It’s not even close to Disneyland, but if your kid likes legos and they’re of that age group they’ll have a good time.
That and the long forgotten characters of 100 years ago.
Just looking at the world they build for hours.
I mean the idea that anything good comes from US and only US, rather than mankind overall and that >95% of human race doesnt live within US borders. A bit if humility and critical thinking also about ourselves goes a long way, especially long term.
that being said, I did enjoy my legos
I wonder what the "half-life" is for various types and brands of toys. I would be surprised if it doesn't vary wildly.
Do you post same question on every Tesla or Apple thread? The added value between creation and landfill is what defines utility, and I'd say Lego is one of the better uses of it. The last thing I want to see is Lego forced to use some more eco-friendly material that lasts a fraction of plastics longevity, for higher costs, and questionable ecological impact down the line.