Thursday, October 7, 2021

Meanwhile In China, Candle Factories Can't Meet Demand

Reminiscent of an old joke, I think it was Soviet so we'll use them:

"What did the communists use for lighting before candles?"

"Electricity"

From the South China Morning Post via Yahoo Finance, September 28:

China power crisis hammers SMEs as firms upend production, workers ‘dozing off’

China’s army of small and medium-sized manufacturers (SMEs) have been hit hard by the nationwide power crisis, with outputs slashed and sweltering working conditions taking their toll, while panic buying of raw materials and goods is becoming commonplace over fears prices are set to soar.

Some producers are stockpiling inventory or buying equipment that uses less power, with Chinese media reporting on Tuesday that at least 20 out of 31 provincial jurisdictions have rolled out electricity-rationing measures in recent weeks, crippling businesses and households.

Candle factories are among those rushing to meet orders as demand soars, but most factories and manufacturers are facing slowing production, rising costs and lower profits as the crisis which has escalated over the past month worsens.

“Our output is down by at least a third, and we can only work from midnight to 8am. Workers are dozing off, and their efficiency is much lower than during the day,” said Wang Jie, a footwear manufacturer in Dongguan, Guangdong province.

“Many export orders in Dongguan will be affected, and we may have to delay shipping orders. We have to reject new orders, including those relocated from Vietnam.”

We SMEs have already suffered too much this year – soaring costs of raw materials and shipping fees, logistics disruptions and slower payments....

....MUCH MORE