Golden Week and Lunar New Year Influence on US PCBA Manufacturing

The global supply chain can be a tricky thing to navigate, particularly with respect to Printed Circuit Board Assembly (PCBA) manufacturing. Seasonal holidays such as China’s Golden Week and Lunar New Year can have significant effects, reaching far beyond the APAC region. Planning and sustaining American manufacturing
operations are made easier by understanding these impacts.

Golden Week, a seven-day national holiday in China that begins on October 1st, can notably affect both
regional and global PCBA manufacturing. Manufacturers in China often halt production for the holiday, causing a slowdown in the global supply chain.

Those American PCBA manufacturers that rely on parts from this region of the world may experience
bottlenecks or delays in production. A company
normally stocks up necessary components in advance during this hiatus, but any sudden spike in demand during this period can put pressure on inventory. Keep this holiday in mind as we approach the end of the year.

Because we prioritize sourcing our components domestically, MacroFab often minimizes the
effects of Golden Week on our business operations. In some cases, however, other suppliers may be required. Your customer care representative will be able to assist you if you have questions about sourcing.

In contrast, Lunar New Year, also a major holiday across the APAC region, has a more substantial impact. The holiday falls on the first new moon
between January 21 and February 20, with the 2024 Lunar New Year landing on February 10. The disruption is more prolonged, as factories often close for up to two weeks, with workers traveling home to celebrate with their families. Businesses that typically manufacture in this region may shift production back to the USA, creating higher demand for domestic manufacturing during this time period.

This longer hiatus and increased domestic demand can cause substantial lead-time delays, and
businesses often plan months in advance to mitigate the effects. If you have concerns about how this holiday may affect your outputs in Q1 of 2024, reach out to your customer care team now.

Both Golden Week and Lunar New Year emphasize the importance of foresight in inventory management and production planning. Awareness of these dates is crucial for maintaining smooth operations and ensuring the continuity of your PCBA supply. Your customer care team can provide you with individualized information about ways to mitigate potential delays.

Success depends on planning. As we approach 2024, remember to plan ahead and navigate the global supply chain efficiently.