This could have devastating consequences for cities like Duluth, Minnesota, which has a yearly fireworks display that attracts about 500,000 visitors.
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Duluth's city fireworks show avoided a shortage
Despite the apocalypse that is the firework shortage, Duluth's city fireworks show is going on as planned. The display will be managed by Pyrotechnic Display, the same company that has been managing the show for several years. The show is financed by tourism tax revenues. The budget is roughly $50,000.
Arrowhead Fireworks of Duluth also has a seasonal tent located in the Burger King parking lot. An employee there noticed an increase in the price of some items.
The Duluth Fourth Fest is the city's largest annual fireworks display. The event consists of a Fireworks extravaganza, an arts and crafts fair and live music. During the night of July 4, 100,000 to 300,000 boxes of fireworks are fired off for six hours.
Phoenix canceled its three major Independence Day displays because it couldn't obtain professional-grade fireworks
During a recent tour of a warehouse lined with a $1,199-stack of fireworks, Orlando Ornelas of Orlando, Florida, told his mother, "I'm ready to have a good time with my kids this year!" Ornelas, who's been buying fireworks for five years, said he's got more than a few pyrotechnics to show off.
The aforementioned warehouse isn't the only place where fireworks can be found. Last year, Red Hot Fireworks had 21 locations in the Valley. The company's tents carry Black Cat fireworks brand. It also carries an impressive phalanx of sparklers for $2.50.
But it's not just the cost of fireworks that has increased over the past few years. The American Pyrotechnics Association reported that nationwide prices have risen by an average of 35%, and that the industry will face some challenges in the future.
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Inflation has driven up costs for firework companies by over 35%
Increasing inflation is driving up costs for fireworks companies across the country by more than 35 percent, according to the American Pyrotechnics Association. The national association said in a statement that rising prices are a result of higher insurance, labor, supplies, and shipping expenses.
While a number of fireworks retailers expect the Fourth of July holiday to be a successful one, they also note that the cost of fireworks is on the rise. Despite the rising prices, some local stands say business is still very good.
The American Pyrotechnics Association estimates that consumers will spend about 2.3 billion dollars on fireworks this year. That's a lot of money, and the organization says it's up from last year's $1 billion. APA Executive Director Julie Heckman says the increase is due to the cost of raw materials, labor, and shipping.
Demand for fireworks is so high that it's almost a perfect storm
Whether you're into fireworks or not, you've probably heard about the supply chain bottlenecks that plague the industry. The problem is primarily related to congested US ports. As a result, the price of fireworks has skyrocketed.
A recent study by the American Pyrotechnics Association estimates that the cost of importing consumer-grade fireworks has risen by as much as 45 percent in the last year. The industry also has to contend with the fact that wholesalers and retailers have become reluctant to stockpile pyrotechnic products. In fact, some companies have chartered a dozen ships carrying fireworks to other ports.
The cost of shipping consumer fireworks from China has also increased substantially. In fact, the cost of importing a single shipping container has risen by as much as $45,000 in the last three years.
China is responsible for the vast majority of fireworks imports to the United States
Approximately 95% of all firework material imported into the United States originate in China. This is despite the fact that the U.S. has banned the import of goods made by forced labor. Fortunately, the Chinese government has implemented stricter safety requirements for its factories and has also stepped up inspections to make the industry safer.
In 2001, an explosion in eastern China's Fanglin village killed 42 people. This accident was caused by an unlicensed factory that produced non-compliant 1.4G fireworks. This factory was operated by a man who was sentenced to six years in prison for criminal negligence.
A few months later, a blast in the southern province of Guangxi killed 12 primary school children. The Chinese government swung into action to investigate the cause. After a quick investigation, it was determined that the blast was caused by illegal fireworks.
The labor shortage is changing the American economy
Creating good jobs in the US is a major business challenge. It is a challenge that businesses in virtually every industry face. But it also presents an opportunity for change. It will require a partnership between the government and the private sector to address the problem.
To create good jobs, employers must offer workers better pay and benefits. Some companies may also outsource some jobs to free up staff. A growing labor pool can lead to more production and consumption.
The government should also enact policies to tighten the labor market and set meaningful job quality standards. It should also encourage legal immigration and reduce illegal migration.
