rosafi
Junior Pyro Member
Posts: 82 
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Post by rosafi on Feb 25, 2020 10:14:46 GMT -5
FIREWORKS SHORTAGE FOR 2020
Update on the current fireworks situation in China.
At this time, we would like to give everyone a brief update on the situation in China and how it is currently impacting fireworks in Canada and around the world.
Manufacturing in China this year has been Challenging to say the least.
Factory shutdowns started back in July when factories were forced to close because of high temperatures and this continued right through until after National Day on October 15. Factories were allowed to open at this time, but production was short lived as there was a major explosion at the beginning of December which caused another shutdown and most factories remained closed until today. The Chinese Government reacted very strictly this time because many were not following the regulations and Beijing stepped in to oversee the situation. Most Factories are still closed.
Here is what has changed for the coming year.. It is expected that China Fireworks production will drop permanently as much as 30%.
1. Hours of factory operation are reduced to 7 am – 5 pm and now 6 days a week not 7.
2. Workers over 60 are no longer allowed, this will reduce the workforce for many types of Fireworks to almost 0. Some types of Fireworks have been made for many years by retirees that worked to supplement their retirement. This is no longer allowed.
3. Powder limits for any workshop have been reduced to levels that will make it very difficult to manufacture efficiently.
4. Factories are cutting their customer lists by as much as 50% and only keeping customers with big volumes and great payment terms. There was a time when factories would produce for anyone but that ended with these changes.
5. Shipping from Shanghai (the main port) is still not up and running because there is a dispute amongst the manufacturers and the shippers because of new permit fees, ultimately the cost will be borne by the customer, that is you and I.
What does this mean to YOU?
1. Fireworks will be in short supply for many…order early, many companies are already showing products out of stock.
2. Prices will go up next year because costs will rise. 30% less production with rising costs can only mean 1 thing and that is rising costs.
3. Not every importer will get product in coming years, struggles are already evident with supply shortages. This year will prove to be hard for some, many US importers have reportedly received as little as 15% of their inventory for 2020.
4. Nothing is being produced in China at the moment. Some factories had partially opened and then closed because there are no lift charge or fuse factories running as of today, making it impossible to resume production.
I have been travelling to China for many years with my first trip in 1989. Many of the factory owners are my personal friends and I can tell you that everyone is concerned. I joined a working group of factory owners and we are creating strategies that will keep the Fireworks industry strong and vibrant. The industry changed this year and it will remain changed forever.
This just a short summary and not even close to a comprehensive picture of what is actually going on at the moment.
We haven’t even mentioned the Corona Virus yet..I will post a series of articles to keep you updated and fill you in on the Truth of what is happening in China as it relates to Fireworks..
Rod Cameron |
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rosafi
Junior Pyro Member
Posts: 82
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Post by rosafi on Feb 25, 2020 10:15:05 GMT -5
Interesting times ahead!
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smile
Junior Pyro Member
Posts: 89
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Post by smile on Feb 26, 2020 1:34:20 GMT -5
Wow, this is pretty sad. I feel for those who make their livelihood on fireworks.
I feel bad for consumers as well. With Mystical buying up so many brands over the years, prices for most of the products folks are familiar with will either be out of stock or surge in price.
I wonder if these regulatory efforts by the Chinese government will move business elsewhere. This must be the government’s intent (to some degree at least).
Anyone know where production would go to?
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Post by felix on Feb 26, 2020 9:05:10 GMT -5
Mystical has already built a new factory in Cambodia. They are manufacturing from there and last year shipped product to Canada.
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smile
Junior Pyro Member
Posts: 89
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Post by smile on Feb 26, 2020 12:04:12 GMT -5
Interesting, I wonder how long it will take them to get back to scale...
More food for thought, after consumers get used to the higher prices, do you think Mystical would then go ahead and reduce them?
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Post by londonfan on Feb 27, 2020 6:31:56 GMT -5
Interesting, I wonder how long it will take them to get back to scale... More food for thought, after consumers get used to the higher prices, so you think Mystical would then go ahead and reduce them?You're one funny guy! I was wondering which country operations would switch to. I was also hoping that it would help bring the Brazillian fireworks to Canada. |
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Post by Grisom on Feb 27, 2020 12:07:46 GMT -5
Other countries are being used - American Promotional Events Inc ( TNT fireworks ) use a company in Mexico called Pyrosmart to make their sparklers .
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Post by pyrot on Feb 29, 2020 11:13:21 GMT -5
This is indeed not very good news for the Industry as a whole !!! Yes, there are many other countries out there that produce fireworks, but none even close to the scale of China - especially for 1.4g product. On the plus(and also negative) side, other than consumer products, it may not have much effect on the 1.3g displays in Canada. Not to sure how the rest of the county is faring, but here in Alberta, due to the economy, there are already several communities that are either scaling back, or cancelling all together their traditional Canada day shows.
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Post by Aussie on Mar 1, 2020 22:19:25 GMT -5
Neither 1.3 OR 1.4 is getting out of China right now.
I’ve heard they’re forcing the exporters to load containers at the docks making a one day load into a 2 week ordeal
No more big shells until Mexico is up and running full speed. Maybe it’s time to start up manufacturing in Canada again.
USA only has 25% of its July 4 gear with a slim chance of maybe getting another 25% before then
Remember, pyro is only shipped on the top level of the cargo ship stacks. There’s a massive back log and everybody’s in a scramble.
I’m good for this years supply thankfully, hopefully it works out before next season
Expect prices to rise
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Post by bigtop on Mar 24, 2020 11:50:37 GMT -5
China has mostly overcome the Covid-19 epidemic and fireworks production is up and running. The last of the containers I ordered for this year is being manufactured right now and is expected to arrive about 3 weeks later than expected before Covid-19 happened. This is a container of product that was authorized and ordered last November which is very late to order for delivery before the peak June/July fireworks season. I usually have the last order placed by early September.
I am fully stocked and my storage is very close to legal maximum storage weight/volume. If sales do not recover in time I will have to add a couple of containers to be able to store the last incoming container. I usually ship wholesale shipments from January to April and that volume is down. No one wants to stock up until they know they will have sales. Of course all fireworks shows within the next month are already cancelled.
Pricing remains the same for this year as last year but I am very concerned where exchange rates between the Canadian Dollar and the Chinese Reminbi are going. Right now the CAD has already devalued by about 9% since the beginning of Covid-19. The United States very poor response to Covid-19 could affect the value of our currency for an extended period of time. Also Canada's response although better than what is happening in the USA is far less than what China did quarantining and locking down millions of people. If our dollar continues to be worth less against the Reminbi it will drive up the price of fireworks and everything else we buy from China.
I think it is long overdue to turn Canada into a police state for a while so that we can lock down the morons who are not complying with the directives to stay home and social distance. China has proven it works. Remember this is about saving lives. All the economic concerns are nothing compared to death by Covid-19.
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Post by pyrotechsupply on Apr 20, 2020 11:31:09 GMT -5
China has mostly overcome the Covid-19 epidemic and fireworks production is up and running. The last of the containers I ordered for this year is being manufactured right now and is expected to arrive about 3 weeks later than expected before Covid-19 happened. This is a container of product that was authorized and ordered last November which is very late to order for delivery before the peak June/July fireworks season. I usually have the last order placed by early September. I am fully stocked and my storage is very close to legal maximum storage weight/volume. If sales do not recover in time I will have to add a couple of containers to be able to store the last incoming container. I usually ship wholesale shipments from January to April and that volume is down. No one wants to stock up until they know they will have sales. Of course all fireworks shows within the next month are already cancelled. Pricing remains the same for this year as last year but I am very concerned where exchange rates between the Canadian Dollar and the Chinese Reminbi are going. Right now the CAD has already devalued by about 9% since the beginning of Covid-19. The United States very poor response to Covid-19 could affect the value of our currency for an extended period of time. Also Canada's response although better than what is happening in the USA is far less than what China did quarantining and locking down millions of people. If our dollar continues to be worth less against the Reminbi it will drive up the price of fireworks and everything else we buy from China. I think it is long overdue to turn Canada into a police state for a while so that we can lock down the morons who are not complying with the directives to stay home and social distance. China has proven it works. Remember this is about saving lives. All the economic concerns are nothing compared to death by Covid-19. I would ba happy to look after the 300 shot Crackling cakes for testing purposes..... yeah that's the ticket!!!!! LOL Hopefully the Covidiots smarten up, people are too busy treating this like an incovenience instead of taking it seriously. People need to be reminded this is not a you and I thing this is a whiole planet and everyone kind of thing. Not just the old or people with underlying conditions - I am not going to go into it full on but if you are ok with letting the sick , old or people with underlying health conditons take one for the team because you are too busy in your life to care / selfish then it is you who needs a mental health professional to speak with, to the rest please stay safe and do things by being thoughtful towards others and the safety of all. Stay Safe! |
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Post by bigtop on Apr 21, 2020 22:38:15 GMT -5
This is not a you and me kind of thing this is a whole world and everyone kind of thing.
Yes
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??