Drop-Side Baby Crib Manufacturers Issued Ultimatum

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With our office currently very attuned to the world of babies (Lisa and Jason welcomed their third boy, Simon, into existence nearly two weeks ago), not to mention their feeding schedules, this little news item certainly set off the baby radar.

The Chicago Tribune reported that the Consumer Product Safety Commission just passed the toughest rules regulating baby cribs in US history. The main target is the “drop-side model, in which the sidepiece that drops down can cause babies to become trapped and hang themselves to death. Beginning this summer, drop-side cribs, and also those with unsafe mattress supports/slats, will be illegal to put or keep on the market. Another historic rule prohibits the sale of almost all second-hand cribs, since most would not pass the new standards.

Source: CPSC via Chicago Tribune

(For the record, Lisa and Jason are not using a drop-side crib. Whew.)

Needless to say, this will have quite an effect on both babies and their parents, and manufacturers.

In terms of baby safety, the rules are reportedly a long time in coming according to the Tribune, between November 2007 and April 2010, at least 35 fatalities attributed to structural crib problems were reported. Since 2007, 11 million cribs have been recalled. Earlier this year, “seven firms, including Million Dollar Baby, Jardine Enterprises and LaJobi Inc., voluntarily recalled more than 2 million drop-side cribs, according to an LA Times article.

On the manufacturing side, will this cause new supply chain disruptions, with new plans for production and distribution having to go into effect pretty soon?

The Juvenile Products Manufacturers Association, a non-profit trade association, doesn’t think so.

“There will be a negligible impact to manufacturers upon passing of the final rule in terms of product being able to meet the new federal standard, the association writes on its Web site.

But JPMA is worried about potential re-testing of already-safe cribs creating hiccups in getting the product to market efficiently.

According to their site: “JPMA does anticipate impact on the cost to be in compliance with the new mandatory rule to the manufacturers from a material standpoint. JPMA estimates the impact to be upwards of approximately 10% due to additional materials being utilized in order to meet some of the new requirements.

Even if companies like Child Craft, the world’s largest crib manufacturer, have to do an about face to adjust to the new regulations, babies around the country will undoubtedly be safer in the long run.

So, anyone want to speculate on future used-crib scrap market trends?

–Taras Berezowsky

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