The Chinese New Year celebrations are currently in full swing. While workers enjoy their well-deserved time off, it may lead to production delays for US importers. This is especially true for those who rely on the China manufacturing sector. The major challenge with managing production supply channels during this time is China’s holidays. Many of them to not coincide with the Western holidays.
For example, in 2020, the Chinese New Year started on January 25. Next year, it’ll shift to February 12 and in 2022, it falls on February 1. US importers and buyers need to understand the impacts Chinese holidays will have on their operations.
The Impact of the Chinese New Year on China Manufacturing
Although Chinese New Year isn’t the only disruptive holiday US importers face every year it is the longest. During this period, factories will ramp down operations beginning about two weeks prior to the official CNY date and then begin to reopen about two weeks after. The impact of this timing can be felt for up to two months so it’s wise to be in close contact with your China supplier to learn their unique schedule.
Other holidays to keep in mind include:
- Tomb Sweeping Festival – April 4 to April 6.
- International Labor Day – May 1 to May 5.
- Dragon Festival – June 25 to June 27.
US importers who rely on China manufacturing must prepare for these situations if they hope to continue with minimal disruption. A delay in new inventory can lead to reputational damage, lost revenue, and soured business relationships. ITI Manufacturing manages these situations for US offshore manufacturers and helps them plan around these disruptions to limit the impact of China’s holidays on their supply chains.
What US Offshore Manufacturers can do to Limit China Manufacturing Shutdowns
When working with ITI Manufacturing US companies can avoid the pitfalls that other importers regularly face during this period. With 45 years of experience in the offshore manufacturing sector, ITI knows the culture, capabilities, and challenges facing the region.
ITI Manufacturing can help importers to:
- Plan for and remind customers of disruptions and avoid a gap in their supply chains.
- Avoid increased costs as a result of not planning properly.
- Communicate effectively with suppliers early and often to understand their expected downtimes and what can be done to mitigate resulting disruptions.
- Establish effective quality management systems to prevent drops in production standards.
- Negotiate in advance to limit disruption and ensure inventory levels according to forecasts.
Partnering with ITI Manufacturing for an Improved Offshore Supply Chain
ITI Manufacturing has extensive expertise in offshoring production to Asia. For companies who didn’t prepare for the slow-down in production, it’s not too early to be proactive now and adjust strategies for the coming China manufacturing industry cycle. ITI has a team of dedicated professionals both in the US and China to assist companies to develop a continuous supply chain. As China celebrates its New Year, ITI Manufacturing can help US importers remain productive.
To discuss your China manufacturing requirements and develop a sustainable strategy for the year, contact us online. Also, freely give us a call at 281-242-7030 for additional and immediate assistance. Ask us about our customizable Offshore Management Service (OMS). This is for companies that have established relationships with Chinese manufacturers. It’s also for those in need of assistance with managing those relationships.