$4th of July
Submitted by Atlas Indicators Investment Advisors on July 1st, 2022Any casual observer knows inflation is rising. Gas prices are frustrating Americans during the summer travel season. Airlines aren’t helping much. Seat restrictions are limiting supply while demand is growing as more and more folks venture away from home, still scarred by the previous couple of years being tethered to one’s abode.
So, what is a person to do? The answer to that question might not be simpler during other times of the year, but this is the Fourth of July Weekend! Fireworks must be the solution! Right? Well, yes, but bring your wallet (after checking local laws of course). The American Pyrotechnics Association told the industry (here) to anticipate a “challenging season.” Rising costs of supplies and raw materials rose nearly 20 percent. In order to maintain a profit along with safety and quality, those added costs need to be passed on the end user. And demand for fireworks has grown as municipalities (forced by covid in 2020) canceled large displays, thus preventing big crowds from gathering.
America seems to be moving past the worst of the pandemic so large shows are coming back. But they are only coming back if professionals are available for the events. Cities across the nation have had to bump festivities to as early as today or as late as Tuesday the 5th of July as licensed staff is in short supply.
Municipalities lucky enough to have a show are also facing rising insurance costs. Firms have had to deal with major catastrophes around the nation, so they’ve been pushing up premiums on all their coverages. Right? It’s not just me who had an increase in auto policies, is it?
After the fireworks are assembled and liabilities are covered, the pyrotechnics need to be shipped. The industry has been saddled with accelerating costs here as well. Once again, these inputs impact the final price, so end users are absorbing that increase also.
No matter what day you see fireworks (gas prices are probably keeping some from seeing shows on consecutive days), enjoy the show. If fireworks aren’t your thing, my dog Penny Lane isn’t a big fan either, think of all the money you’re saving by not purchasing them. Atlas is open today but will be closing up shop early and returning on the 5th. Happy 4th of July.