The LEGO Group has been exceeding its sales target and growing for the past years.
With the release of "The Lego Movie" and Lego brick sets linked to iconic film characters, such as the hyped "Star Wars Episode VII: The Force Awakens," it's no wonder that products made by the Danish toy company would have a high demand.
The only trouble is that, in spite of its efforts in opening up new factories to meet the increasing demand, the supply is still lagging behind.
The LEGO Group has experienced an 18 percent increase in global sales growth in the first half of 2015 alone. Steps have been taken to open up new production sites that would supply the company's needs. However, even at full capacity, LEGO admits that it cannot meet the overwhelming demand for its products this Christmas.
"We will not be able to deliver all of the orders coming from customers in the remainder of the year," LEGO spokesperson Roar Trangbaek said.
Trangbaek explained that the product orders placed for the holidays exceeded both the company's and consumer's forecast. Additionally, Trangbaek predicted a shortage affecting some parts of Europe in 2015, after the 2014 brick shortage in Canada and Denmark.
On Oct. 20, LEGO announced that a massive expansion of its Mexico site is set to begin in November. An additional 190,000 square-meter (approx. 2 million square feet) facility is planned for the group's existing site.
"Based on our current expectations, we project an additional 3,000 colleagues in the factory in Mexico by 2022," shared Bali Padda, LEGO's chief operations officer and executive vice president.
LEGO is also set on doubling the capacity of its Hungary facility by 2016 and has invested in updating and modifying its factory in its headquarters in Denmark.
The upgrade of the HQ, Padda explained, aims to "innovate and lift our manufacturing know-how to new levels across the globe."
The company is also building a factory in Jiaxing, China to meet demands in Asia. The said facility is slated to begin its production in 2017.
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