Instead, she's ramping up Arrowcopter Inc.'s manufacturing operations and getting a record number of orders from retailers in 11 countries. More people are buying the slingshot-like gizmo, which starts at $4 and — as the packaging proudly proclaims — is made in the United States.

As consumers look for alternatives to Chinese-made toys following a series of recalls this year, dozens of small toy companies are struggling to meet surging demand. Some owners report online sales up as much as fivefold from last year. They're hiring extra workers, expanding warehouses and adding extra assembly shifts. ...