Advances in wood-cutting machinery and lean manufacturing techniques in the production process have enabled cost and waste to be squeezed out of the wood toy industry and increased overall productivity for those firms investing wisely in technology.

Firms are continually experimenting with new materials (e.g. plastics, composites, etc.) and searching for ways to provide toys in a more safe, inexpensive, and durable fashion through advances in material science.  These types of materials pose yet another means of competition for the wood toy market.  Current and future material substitution could easily dampen wood toy profits and erode the wood toy industry’s market share.  The losses would be even more pronounced for firms who specialize only in wood materials.  However, the nostalgic nature of wood toys set them apart from the ever-growing list of toys constructed with cheaper, man-made materials.  According to the research, wood toys are still in demand.  By focusing on traditional and simple products that are well-suited to the medium of wood, W4K believes it can retain a competitive advantage.