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How Chinese New year may affect us...


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Found this site on doing business in China and came across this which is quite interesting..

Chinese New Year 2024: How will it affect my business?

If your business relies on manufacturers in China or the other countries that celebrate the holiday, the Chinese New Year shutdown will probably affect your business — even if the factory is just one step in your retail supply chain.

Halted production

Chinese New Year is a public holiday in countries where it is celebrated. During the Chinese New Year holiday, all factories close and employees go on holiday for at least two weeks.

As this includes management and production overseers at the factories, you may not be able to get in contact with your suppliers during this time. All production will come to a halt, and you won’t be able to get in touch with the factories until after the holiday ends.

Reduced product quality

When factories reopen after the Chinese holiday, workers may not come back at the same time, and sometimes not at all.

When workers don’t come back, factories must replace them quickly, which leads to lower quality and untrained staff working on production lines. As expected, when new workers are on the line, many products will not be produced properly.

Unfortunately, that doesn’t necessarily mean the factory will re-run your order and, in some cases, they may ship the bad products along with the rest of your order. Ultimately, you may end up paying for a run of lower quality products without much recourse, especially if you need those products immediately.

Source: https://www.shipbob.com/blog/chinese-new-year-shutdown/

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39 minutes ago, varamontelo said:

For 2024 it has happened. 

I think from the following rule of thumb:

  • End of January: Suppliers will begin to stop production. (Before this date in a rush to complete previous orders)
  • Early February: Employees begin leaving the factories.  (Strain on remaining workforce)
  • February 9: All employees have left the factory.
  • February 10: Chinese New Year.
  • Mid-end February: Employees begin arriving back at the factories. (Strain on returning workforce)
  • February 29: Most employees have returned. (Many have left jobs and not returned, this is the traditional time to leave and change jobs)
  • March 8: Operations are almost back to normal. (New production staff need to get up to speed with processes and ability)

Its prudent to get a wheel built after April for better QC prospects by looks of things or early January at latest.

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On 3/13/2024 at 5:13 PM, The Brahan Seer said:

Its prudent to get a wheel built after April for better QC prospects by looks of things or early January at latest.

Agree. People are refreshed and the assembly line is back in its rhythm.

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