Supply chain problems
One of the most anticipated outdoor spectacles of the summer, the Fourth of July fireworks show, is being hampered by supply chain problems. Despite the high demand, many vendors are unable to fulfill customer orders and, as a result, consumers are being hit with higher prices. The fireworks factory industry is one of many sectors suffering from the effects of global supply chain issues.
According to the American Pyrotechnics Association (APA), the fireworks industry has been impacted by supply chain problems for nearly two years now. The APA notes that these issues have had a profound impact on fireworks shows in the United States. In fact, the APA estimates that this year's Fourth of July celebrations will cost $2.3 billion.
In addition to higher prices, many vendors are struggling to fill their shelves. Several cities have already decided to cancel their Fourth of July display fireworks, including Fairfax, Virginia and Ottawa, Kansas.
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COVID-19 pandemic
The COVID-19 pandemic is having an impact on fireworks prices. The pyrotechnic industry has been impacted by inflation, supply chain issues and the effects of the pandemic. The American Pyrotechnics Association says the cost of firework products has increased by 35%.
The American Pyrotechnics Association has warned the fireworks industry of a challenging season. The organization said the cost of importing fireworks into the U.S. has increased by nearly double the overall inflation rate.
During the last two years, the fireworks industry has faced shortages, late shipments and slow shipping from China. This has made it hard for retailers to offer the products that customers want.
In June, Phantom Fireworks, the largest consumer-based retail consumer fireworks company in the U.S., reported "extreme" shortages. This has led the company to increase its inventory from two to eight containers. This is compared to last year when it had no shortage.
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Inflation
Inflation is certainly a thorn in the side of many businesses, but fireworks aren't immune to the rising cost of commodities. The consumer price index doesn't provide much detail on retail fireworks, but the data does suggest that the costs have been rising in recent years.
The American pyrotechnics Association recently published a report on overall costs of the firework industry, revealing that the overall cost of fireworks has increased more than 35 percent. According to the association, the most notable increase has been in the cost of raw materials and supplies, as well as transportation.
The organization also reported that the overall costs of consumer services have increased by 8.6%. This includes the aforementioned supply chain issues, as well as higher insurance premiums and labor costs.
Fourth of July barbecue costs
Fourth of July barbecue costs will go down in 2021, according to the White House. That's according to a new report from the American Farm Bureau Federation.
Food and agribusiness analyst Karol Aure-Flynn wrote the study. The report analyzed price trends in the food industry and determined what Americans should expect to pay on the holiday.
While the cost of the typical Fourth of July barbecue will be about 17% higher than last year, many of the items on your menu will be cheaper. A pound of sliced cheese dropped by 13 percent, for example. And the prices of strawberries have fallen by 16%, too.
But the average person will also have to spend more on beverages. Fresh-squeezed lemonade has gone up 22%. And vanilla ice cream is up 10 percent. Wine is up nearly 6 percent.
