The Chinese government appears to be ordering all fireworks factories to shut down for 75 days! Ouch! As the shortage of fireworks in America continues to linger on, the Chinese government will order all fireworks manufacturers to close their factories down for 75 straight days. What is the purpose of this move? Unknown to importers of why a government would order its people in the fireworks manufacturing business to take a leave to work for such a long period of time. The bigger questions are why? Well, we seen how the shortages drive the prices up. Is this another plan to gouge the fireworks consumers in the wallet? So if the Chinese intentionally limit the supply, like everything else that becomes limited, the prices and profits to the Chinese soar. Prices for the 2021 fireworks season have already seen record increases for such a short period of time. Importers have seen a 60% increase in their cost to purchase the goods and get them shipped to America. The only retailers who have not followed suit in the serious prices increases, are the ones that probably won't be able to replace what inventory they sell out of this season. Or those who like working for nothing and get zero returns on their investments. Like all businesses, those who fail to respond to the trends and time in the business environment, usually don't stay in business long. Imagine, selling gasoline for 99 cents a gallon when it cost you 98 cents per gallon to buy. I guess you get the point. One cannot survive in business at a 1 cent profit margin.
Looking down the long road to the fireworks store. One must become better prepared to participate in the fireworks excitement under the current circumstances. Expect shortages for New Years as well as the 2022 season until importers and the manufacturers get on the same page. Expect much, much higher pricing in the things that go boom or things you light with fire that are made in China.
