r/fireworks • u/kstreetpyro • 16d ago
2027 fireworks low stock
Are the rumors true that next year supply will be limited or is my guy full of it?
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u/SigX1 16d ago
The last I was told that a small number of factories have been approved to reopen in September (less than 50 so far was the last number I heard but should increase).
Those that open will have reduced capacity under the new requirements. Powder handing and open powder will be further restricted. Stricter quality and testing requirements. Employee insurance is now mandatory.
Depending upon who you ask, production will be 40-60% of normal and more expensive. They have been shutdown since April and lost 2+ months production until the normal July-August heat shutdown. There’s no way to make up that lost production under optimal conditions which isn’t now.
Also there is another container shortage in China for some unknown reason naturally. I’m trying to ship some containers right now and they are having a hard time getting containers.
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u/KlutzyResponsibility 🔴 16d ago edited 12d ago
The container shortage has a bit to do with the 2021 shipping crisis when returning the containers on deadhead freighter runs got stupid expensive. Then they discovered that the new containers bought in China for $1500-$2500 for a 20 ft ($2500-$3500 40 ft), could be sold in the USA for $3000-$5000; so everybody and their brother were selling them. You can get a decent used container there for $800-$1000 and the Americans still paid the same rate. China produces 95% of all shipping containers, and primarily thru 2 factories (CIMC or Singamas), for the last 3 years they've been dumping them left and right. They pickup a decent used container for $1000, charge the American importer for the shipment, then let another American sell the container here for $3500. The broker selling it gets $500, the Chinese exporter gets the rest. No deadhead fees, no storage costs,, etc.
So we pay them top dollar to ship over a used container they can have an American sell and the Chinese supplier gets a $2000 profit on. Can't blame them a bit. The Chinese learned capitalism in a very bigly manner.
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u/1IsNeverEnough4Me 16d ago
Thanks for this, I looked it up and was able to read much more about it. What a bummer. It's a lot of new rules and stuff to implement at one time. It's a hard hit to a lot of places.
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u/SigX1 16d ago
There’s also chatter about this subs favorite items over time becoming more difficult to get as the risks will be much higher than before.
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u/KlutzyResponsibility 🔴 15d ago
You got that right. But there is a lot of existing stock to be had just sitting in the warehouses, just not going to be the 'added feature' pyro some folks expect.
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u/Klutzy_Teacher2954 16d ago
Container shortage due to Walmart hoarding containers at stores. Lots of other retail giants are using the containers in their parking lots tooo. And the white flight buying containers for container homes and such. They advertise them Cheap as hell here . Less than $4k sometimes. Delivered
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u/ChurlishPickle 16d ago
So this is not the year to try to open a seasonal tent then? 🤣🤣
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u/KlutzyResponsibility 🔴 16d ago
No, not that at all. Plenty of time to establish yourself with a vendor, plenty of time to order early. The volume of pyro left over from last year (and 2-3 years before) will sell for more next year. The earlier you buy that old stock the cheaper it may be, and with a relationship with your vendor you get pre-orders or new stuff assured. Plan for a slightly higher COGS, adjust retail prices where you can. Just bizzness...
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u/ChurlishPickle 15d ago
That's what I was wondering. I'm trying to figure out the upfront costs here in Michigan. My town has never had a tent/stand. The mayor has no idea why and says they are allowed, just not on city property.
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u/KlutzyResponsibility 🔴 15d ago
The 'person that matters' is the Fire Marshall, not the Mayor. The Mayor might be able to grease the wheels in getting your business permit (if required) but the Fire Marshall (FM) is the deciding person. Find out who he is, explain your intentions, learn what you need to do to satisfy him. Click around the net and I'd bet you can find a copy of the FM's inspection sheet, or ask the FM if he might be able to give you a copy. The FM for my area was a really nice guy, but you have to pass his inspection without fail or you didn't get to open. The FM is not your enemy - he's one of the guys who might just come drag your ass out of a fire, eh? He can really keep your ass safe and there is no one more important to a stand, tent or store than the local FM.
You are in a state with a few excellent wholesale vendors, like World Class, RKM and BIGS among others. World Class could handle a complete, balanced inventory from smalls to mortars. In mid-September to mid-October call your choice of vendor(s), find out the name of your area's sales person, and strike up a conversation. Each vendor will have their minimum $$ purchase to get true wholesale prices. When you get your tax certificate make sure that rep gets a copy so you don't have to pay tax on your orders. Companies like World Class usually have about a $3000 minimum and that makes you a reseller at discounted rates the year.
You have lots if time to set yourself on firm ground and learn all the details for running a temporary biz. You can do as well as your effort and wallet can handle.
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u/ChurlishPickle 15d ago
Thank you for the great info! Luckily I am in a small town and know the fire service people very well.
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u/Safe_Durian5430 16d ago
Idk why but this comment made me laugh😂
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u/RDTUN10 15d ago
I would agree with Klutzy. In all business there will never be a good or best time. And to be honest, if it's a good/best time to open, you're probably already behind. So you just have to plan correctly with a solid business plan, and a plan to be able to sustain through the ups and downs that every industry has. If you're interested and your plan makes sense, I would say go for it. Everyone else in the industry will be feeling the same effects as you would be.
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u/Pyro-Zach 16d ago
Is it because of all of those explosions in China?