The Chinese New Year Factory Shutdowns Will Cause Manufacturing Delays

The Chinese New Year (CNY) holiday 2023 on the calendar lasts only 7 days, but the disruption it causes in manufacturing can be up to 40 days.

-CNY in China 2023 will be from January 21st to January 27th

-CNY in Taiwan 2023 will be from January 21st to January 27th

Unfortunately, the CNY factory shut down 2023, in China, will most likely be worse than in previous years, due to rising Covid-19 cases after the lifting of restrictions and mandated lockdowns.

- Last year, the Chinese government regulated industrial energy consumption for a number of months, and it’s difficult to say if that will happen this year or not.

-Many factories operated for 15 days and then shut down for another 15 days, continually.

-Some factories were limited to working four times a week only.

-Rising raw material and shipping costs made it harder for manufacturers to stay open.

These factors could result in many factories in China taking extended CNY holiday breaks in 2023.

If you’re planning on ordering anything for the coming months, you better place orders now, and expect some delays.

HOW WILL THE CNY 2023 HOLIDAY AFFECT MANUFACTURING?

1. All significant businesses in China and Taiwan completely shut down for at least 7 days, including all factories.
2. Some factories may even shut down for up to 3 weeks because CNY will block China’s transportation systems entirely as all employees return from their factory to their hometowns up to 2,000 km away.
3. All manufacturing projects will be on hold.
4. Component manufacturers and distributors also take vacations.
5. No manufacturing components orders ship out of China or Taiwan during CNY.
6. The information flow is cut during the CNY holiday. No one will answer phone calls or emails.
7. You might experience severe production slowdowns 1 or 2 weeks before the CNY holiday because many workers leave factories early to go home – to avoid the peak time rush.
8. Before the CNY holiday, you might experience an increase in quality issues. As factories and suppliers get ready for the big holiday, they rush to finish as many orders as possible before too many workers leave for the holiday and before all businesses in China and Taiwan officially close.
9. After the CNY holiday, you might also experience increased quality issues. This happens because one-third of the factory workers don’t go back to their jobs. As a result, many inexperienced workers are promoted or hired. This phenomenon is not limited to assembly line workers; it can even extend to managers, critical firmware, and design engineers too.

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