Chinese Fireworks Manufacturers Struggling to Meet Demand

For the first time, or maybe we should say the worst time in decades, the Chinese fireworks manufacturers are struggling to meet global demands for fireworks supply.  Firework factory numbers in Hunan Province are down by another 200 in 2018 leaving larger orders for the remaining factories to try to fill, in the same amount of time.  Orders for the USA usually need to be loaded and on a cargo ship with a sail date from Shanghai or Beihai no later than May 1st to arrive in time fo the 4th of July retail selling season.  Wholesale sales take place in March through May and those containers must leave before the Chinese Lunar New Year in February each year.

For the fireworks importers and distributors, things in China are not likely to change for the better any time soon.  Brokers and Consolidators have been warnign for several years this day may come, and placing orders in the fall for the following seasons sales would not work any more, it appears that day has come.  Manufacturers recommend fireworks needed for 2019 need to have those orders placed before the 4th of July of 2018.  This can be difficult for distributors, as they do not know how sales will affect inventory levels and can be affected by many things, the least not including the weather.

With the 4th of July on a Wednesday this year, this typically drops sales as much as 15% in the USA versus when the Holiday falls on a weekend.  China manufacturers are urging importers to place orders more than 12 months in advance now, and 18 months is even better.  It is estimated that only 75% of the orders placed for delivery in time for 4th of July in the USA will arrive on time in 2018.   We will keep you up to date on the ever changing industry environment as relevant news becomes available.  Check back with Mad Ox Fireworks often for updates!