How the Coronavirus Could Lead to Major Shortages for US Vape Companies

China is at a stand still as most residents cannot return to work after the most recent outbreak of the Coronavirus. As reported by CNN Business, as the world’s second biggest economy source, China has been basically shut down for more than three weeks as this viral outbreak sickens thousands unexpectedly lengthening through the Chinese New Year Holiday.

Worker shortages, transportation disruption, lack of medical supplies have all increased due to this taxing virus. The scope of this crisis is truly staggering as the CDC (Center for Disease Control and Prevention) reports since the outbreak over 2,442 have died while more than 78,000 people have fallen ill. This stand still shows that the global economy could be in jeopardy if this manufacturing powerhouse stays shut for longer.

About 90 percent of the world’s vaping and e-cigarette devices are produced in Shenzhen, China with close to 1,000 factories. Chinese officials have still allowed some to resume operations under the promise they have stringent measures to prevent any further spreading of the virus. Companies have been ordered to give out at least two masks a day to employees as well as conducting temperature checks as reported by AP News.

Supply Shortages

Although some factories are doing what they can, most Chinese manufacturers are not rushing to resume operations. The Coronavirus creates a global problem especially for the vape industry as the manufactures they once counted on will not be able to produce or deliver accessories like coils, pods and other hardware utilized in vaping. Dwindling down in frightening numbers and almost no domestic alternatives, there could be a significant delay in shipments turning to eventually a total outage.

In the US the first hit the vape industry felt was the Trump administration deciding to trade war with China and a partial ban on flavored vape products like e-juice. This caused the removal of many vape products from being sold in local and online stores.

So, What Does This Mean?

Now, with the timing of the outbreak, this could significantly affect the industry if the supply from China fails. Wholesale vape suppliers have to wait for the Coronavirus to end before they can even get a steady supply of vaporizer products and accessories. Forcing a delay and retailers who are in limbo to stock up while they can and avoid any issues in the upcoming months.