Victory Fireworks

[JoSlicknuts]

I read on the Victory website that their prices are only good up until the 4th of July then will be increasing "due to multiple factors in China." Anyone know anymore about this like how substantial the increases will be and what the "multiple factors" are?

[MtnViewPyro]

From what I understand, this is industry wide. Most companies are trying to keep prices low, but I think we will all see increases. The multiple factors would be the closing of factories, rising wages, and increased regulations. I’m sure there is more factors, but those three are probably the most likely culprits.

[Hartman]

Could simply be a marketing tactic to get you to spend your cash

[NWA_Fireworks]

I heard the same thing from all my wholesalers this year. There are a few things going on.

1) The Chinese government is trying to reduce pollution in China, so several cities in China have banned the use of fireworks - over 400 cities were added to the list in the last year alone. This has obviously hurt demand, and there isn't enough business to go around. 3 years ago there were about 950 factories in Liuyang, but that number is down to closer to 450 now.

2) I've heard (but not confirmed) the Chinese government is requiring that the manufacturers who are still in business make payments to the smaller factories that were forced to close.

3) Transportation costs in North America have sky rocketed (pun anyone?) this year due to a driver shortage, increased government regulations on commercial trucking companies (Electronic Log Devices), and record breaking demand thanks to a growing economy.

Further complicating issues for 2018, the production window in China was narrowed this year due to extended visits to Liuyang from Chinese government VIPs. Apparently whenever government officials are traveling through this area (where the fireworks are produced), all fireworks production is shut down for safety reasons until they are out of the area. These multiple and extended visits put a real damper on 2018 production, leading to delays and shortages of many items. Many wholesalers will unfortunately be receiving overdue containers of fireworks the first few days of July and even after the 4th - all of which are too late to distribute and sell until New Year's or 2019.

[Rocketshooter]

Let's open up some factories in North Korea, plenty of cheap labor!

[Icooclast]

Let's open up some factories in North Korea, plenty of cheap labor!

watch out with them sort of jokes, they might cancel your hit show. lol :)

[Rick_In_Tampa]

Let's open up some factories in North Korea, plenty of cheap labor!

Don't think for a minute that Trump hasn't already pitched similar ideas to little Kim. If you wanted to reduce the trade deficit with China and eliminate the nuke threat from North Korea, what better way than to leverage the 25M prisoners.... I mean people of North Korea to make cheap, Wal Mart quality "stuff" for Americans?

[Mauro]

Maybe it’s time for wholesalers to diversify and start looking for alternatives to China, like Italy, Mexico etc?

[Kenny East]

Many factories are looking at New locations, Myanmar, India, Thailand, Vietnam, Laos, and a few others... But most lack the necessary infrastructure to make for a suitable replacement.

Government forces shutdowns, changes in manufacturing process and materials used are also driving up the price. There is a monopoly on cardboard in China and they raised their prices last year as well as for regulation passed that prevents using recycled cardboard for fireworks.

[jknepp1954]

Industry has went thru a 3% to 8% increase this PAST year. Projections are more increases on the way this year too - never heard how much though.
Most do to raw matertials...

[Backyardboom]

Could simply be a marketing tactic to get you to spend your cash

Victory is a big reputable company that I've done 1.4 and 1.3 business with for along time, trust me its no marketing ploy.