Yiwu Factories Are Asking for Longer Lead Time Due to Lack of Labor and Power

Oct.05, 2010.

-by Yiwu-martket-guide.com

Yiwu Christmas items and toys nowadays have stimulated the production peak of the previous orders from overseas buyers.

These companies can usually grant 20-30 days delivery, 10-20 days the fastest. Currently, under the influence of multiple factors, the production cycle was extended to 50-60 days.

Many Yiwu companies are worrying about the timely delivery. Toys and Christmas production efficiency is reducing due to lack of labor and power supply.

In China, it's so hard to recruit cheap and skillful factory workers. A few years ago, this has never been a problem. And for power supply, the China government is taking a very harsh approach to force the factories consuming less power, esp. electricity. The government wants factories upgrade their production line to meet certain environmental requirements. But most factories are slow in action, so government simply cut off power supply for all factories in some areas.

On the other hand, overseas buyers are increasing quality requirements. These factors result in prolonged delivery for 20 days, and now while negotiating with the buyers, these factories not only need to raise prices, but also need to ask for longer lead time. Rush orders has to be refused, otherwise, the meager profits is far less than delivery delay penalty.

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