In light of global supply chain challenges facing our industry and our livelihoods, Pop! Promos will be publishing a weekly bulletin highlighting current supply chain issues and their impact on our industry.

Update: A brewing global energy crisis
A surprisingly strong rebound in Asian manufacturing as strong demand for goods from developed countries (think government stimulus and roaring capital markets), coupled with minimal investments in coal production over the past decade have tripled coal prices in the last 12 months. Power plants in China and India, whose rates are set by government panels are either running out of coal or choosing to shut down rather than operate at a loss as their costs skyrocket.

China’s dispute with Australia over its announcement to purchase nuclear powered submarines from the United States has exacerbated the situation. Historically, 40-50% of China’s coal imports came from Australia but those have been cut to zero over the political dispute.

How is this affecting Pop! Promos?
All of Pop! Promos’ factories are currently fully operational and have implemented plans to continue producing at our industry-leading production times despite the energy shortages. After studying the situation in collaboration with our factories and offices across Asia, Pop! Promos has drawn the following conclusions for our business and industry:

  1. All of Pop! Promos’ manufacturing facilities are in industrial parks employing large numbers of people, which are less likely to have power cuts than other areas.
  2. Our factory partners have shown enormous resilience purchasing and installing diesel generators to allow for continuous operations despite power cuts.
  3. Factories are reworking their labor schedules across facilities to operate 24 hours/day when they have power and then rotating staff to other locations when they do not.

More next week.

 

Regards,

Sterling

PS: This twitter feed has a more detailed explanation of the energy issues if you’d like to learn more: https://twitter.com/SahilBloom/status/1444702403308277765

popstar@poppromos.com
www.poppromos.com
267-858-4495

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