As many of you know China has been hit with a large outbreak of the Coronavirus and had a major accident at a fireworks factory in early December. With the Government halting all fireworks production and the emergency situation in China, fireworks production and shipping is at a standstill and is expected to remain that way for some time.
My recommendation is for those wanting fireworks displays to contract early this year and expect prices to rise with the current situation. With over 49000 people infected and 1500 deaths already, the Coronavirus outbreak is making the supply of fireworks a large question mark for the US fourth of July celebrations and beyond.
Many in the industry are waiting to see just how bad the backlog will be for import. Here's what we currently know for sure:
1. Fireworks prices will go up at least temporarily as demand depletes existing stock
2. Even when factories reopen, a substantial backlog of orders and shipping will take place
3. New regulations will further increase the backlog due to the Chinese government changing rules on storage in China
4. While US stock is somewhat stable currently, the next few months may impact product availability and cost
5. Once again this year there is a shortage of qualified shooters in many locations
We wanted to put out the recommendation to book your events early and make sure you have your contracts locked in.
Until next time! Be safe out there!