The coronavirus outbreak has spread throughout China killing hundreds and infecting over 24,000 people. In attempt to control the spread of the virus, over 24 regions in China have shutdown their factories and businesses. As a result, Chinese factories will be temporarily restricting their supply of products.
The Washington Post reported, The extended shutdown of Chinese factories from the coronavirus outbreak is upsetting supply chains as manufacturers feel the pinch from shortages of material and travel restrictions on staff.
This shutdown is impacting American companies that depend on China for their tech products and this includes, vape companies. This has resulted in a shortage which may be a problem for vape companies in America.
Despite the scare over health and safety of vape pens, the demand is still on the rise.
According to NCV Newswire, During December, the fourth month following the onset of the vaping crisis, sales across the six markets totaled $607.6 million, up 3.2% from November due to recovery in the vaping category. Overall sales growth from a year ago among the five Western markets ranged from 5% in California to as high as 38% in Arizona.
Majority of vape producers import their hardware from China. Essentially, every component for vape pens such as the batteries and empty vape carts come from Chinese factories. The cannabis oil is the only part of the vaporizer that comes from America. This may also have a negative impact on both legal and black market producers.
For the time being, this shutdown will continue to be a threat towards vape companies and their steady supply of inventory.