The average firework has a life expectancy of 5-10 seconds, but the fireworks supply chain that makes everything sparkle during 4th of July celebrations is much more time consuming. The primary reason is their origin, as around 90% of fireworks purchased in America—around $2.3 billion worth in 2023—comes from China. Let’s take a closer look at the fireworks journey across the entire supply chain and how cutting-edge tech ensures plenty of fireworks arrive in time for this iconic American holiday.
A volatile and labor-intensive manufacturing process
Fireworks have been around for over 2000 years, and like many great inventions, were allegedly discovered by accident. History has it that in about 200 BC, in China, it was discovered that bamboo, when thrown into a fire exploded with a “bang.”
But it took another 1,000 years (around 800 AD) until a Chinese alchemist, looking to discover the secret to eternal life, decided to mix sulfur, charcoal, and potassium nitrate. The concoction caught on fire, and “bang,” gunpowder was born. The first “firework was created by packing this combustible powder into bamboo and paper tubes and setting it on fire. What could go wrong with that?!
Things are much more regulated and controlled in today’s production process. The same compounds used in 800 A.D. (sulfur, charcoal, and potassium nitrate) are mixed, shaped, and packaged into various firework components, including shells, fuses, and aerial effects. Safety is top of mind, and the manual intensive process requires skilled technicians who meticulously measure and assemble each firework to ensure a stunning visual experience.
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The manual labor to obtain materials for fireworks is also in shorter supply. As well as the three main chemical components, manufactures also require various metals that create vibrant colors when they burn. Yet these are supplied through mining operations, and mining companies currently face supply and equipment disruptions.
Logistics that go without a bang
The storage and movement of fireworks require specialized protective containers and packaging to protect the volatile products.
Fireworks must be stored in secure warehouses and facilities designed to reduce the risks of combustion due to their volatile nature. These facilities are equipped with temperature-controlled environments and specialized storage locations to ensure different types of fireworks are separated to prevent accidental combustion.
Due to the sensitive nature of fireworks, transportation must adhere to strict safety protocols to prevent mishaps. Trained professionals handle their transportation, taking precautions to prevent ignition and ensuring compliance with transportation regulations.
Also, due to the volatile nature of fireworks, a federal explosives license needs to be obtained from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in order to engage in the importing, manufacturing or selling of fireworks within the US.
All fireworks headed for the U.S. market arrive via cargo container at one of the biggest ports, then travel overland via multi-modal movement. It’s usually 30 to 45 days from the time it leaves a warehouse in China until it hits a U.S. supplier.
Long Lead Times and Demand Forecasts impacted by Weather Forecasts
AS stated earlier, the majority of fireworks purchased by American consumers are manufactured in China, so many U.S. distributors place orders more than a year in advance of the Fourth of July.
However, actual demand leading up to July 4th is very dependent on the weather. Most actual consumer purchases take place in the week prior, so wet and gloomy forecast can significantly impact actual demand. On the other hand, a specifically dry period leading up to the big day can also have a negative impact as local authorities my put a ban on public displays.
What does the future hold?
Due to the combustible nature of fireworks, safety is always top of mind. This has led some companies to look at alternatives that provide the same visual pleasure with less risk. Drones are being used to create dazzling light shows and arial spectaculars. They can simulate the visual feel of an exploding firework, as well as forming enormous American flags to generate those “oohs and ahhs.” They also have environmental benefits as they generate less emissions, increase material sustainability, and reduce the necessity for mining operations.