OM in the News: The Fireworks Supply Chain

Last week, all across the U.S. people enjoyed the dazzling displays of Independence Day. Fireworks are pyrotechnic marvels: the heart-stopping booms, the cascade of dazzling colors, the incredible finales. Supply Chain Management Now (July 7, 2024) examines the supply chain needed to create these events:

  1. Manufacturing fireworks is quite labor-intensiveProduction requires a delicate mix of sulfur, charcoal and potassium nitrate, packed into various components including shells, fuses and aerial effects. Skilled technicians must meticulously assemble each firework to ensure a visually stunning experience while prioritizing safety and quality control.
  2. Many fireworks include extra elements to create unique sounds. Layers of an organic salt, combined with an oxidizer, burn one at a time to slowly release gas and create whistling sounds. Aluminum or iron flakes create hissing and sizzling sparkles, and titanium powder gives us those super-loud blasts. Colors too, are attributed to particular materials.
  3. Transporting and storing fireworks is a delicate process. For obvious reasons, fireworks can’t just be carried by any shipping company to the average warehouse. Fireworks-storage facilities are equipped with temperature-controlled environments and specialized storage locations to ensure different types of fireworks are separated to prevent accidental combustion. There are strict rules about transportation, and trained professionals must take precautions to prevent ignition and ensure compliance with multiple regulations.
  4. Weather plays a prominent role in fireworks demand. About 90% of fireworks in the U.S. are manufactured in China, meaning orders are placed well in advance of the 4th. But consumers tend to purchase fireworks just before the holiday, so excessive rain or drought can put a serious damper on sales.
  5. Today’s fireworks are more futuristic than ever. Drones are now commonly used to create dazzling light shows, as more and more cities are retiring colorful fireworks displays in favor of “swarms of illuminated drones.” Drone shows are safer and much more environmentally friendly, as they generate fewer emissions, increase material sustainability and reduce the need for mining operations. The market size for global drone light shows was valued at $1.3 billion in 2021 and is projected to reach $2.2 billion by 2031.

Classroom discussion questions:

  1.  Is the fireworks supply chain unique?
  2. Can the manufacturing process be automated?