94. Fireworks Shows

Summary

The Economics of Everyday Things: Episode 94 – Fireworks Shows

Hosted by Freakonomics Network & Zachary Crockett

Introduction

Every Fourth of July, millions across the United States gather to watch dazzling fireworks displays that illuminate the night sky with vibrant colors and intricate patterns. While these shows are a source of national pride and celebration, the individuals responsible for orchestrating them often face significant pressure and logistical challenges. In Episode 94 of The Economics of Everyday Things, host Zachary Crockett delves into the intricate world of professional fireworks displays, uncovering the economic, logistical, and cultural facets that make these spectacles possible.

Behind the Scenes: The Pressure of the Fourth of July

Fireworks choreographers and coordinators bear the immense responsibility of creating memorable displays that meet public expectations. J.J. Brah, a fireworks choreographer with J&M Displays, highlights the mounting pressure as the event approaches:

“All those people came out to have a good time and they came out with their families and they're expecting something to happen at the end of the night. That pressure sort of builds as we approach, you know, 7, 8 o' clock... If it doesn't, you have a big problem.”
[01:38]

Mark Johnson, Vice President of J&M Displays, emphasizes the emotional toll and technical demands of handling explosive materials:

“You push fire and the first thing you're going to feel is that thump in your chest. It's a huge relief to see that first spark hit the air.”
[02:16]

The Fireworks Industry: Consumer vs. Display Fireworks

The fireworks industry in the United States is a $2.8 billion business, bifurcated into consumer fireworks—such as sparklers and Roman candles—and display fireworks, which are larger, more powerful, and used in professional shows. While display fireworks constitute about 20% of the industry's revenue, they are the backbone of national celebrations like Independence Day.

Historical Context and Community Pride

Mark Johnson traces the tradition of fireworks back to the founding of the United States. Referencing a 1776 letter from John Adams, he notes:

“John Adams stated in a letter in 1776 that he thought this event should be celebrated in the future with bonfires and illuminations. And that the following year in Philadelphia was the actual first fireworks display to celebrate our Independence Day.”
[04:13]

Today, communities often vie for more elaborate displays than neighboring towns, turning fireworks shows into a matter of local pride:

“Communities actually even compete. We want to have a bigger display than the next town over. It's a sense of pride that, you know, we're being more patriotic.”
[04:34]

Logistics and the Supply Chain

A significant portion of the fireworks used in American displays originate from China, making the industry heavily reliant on international trade. Mark Johnson explains the challenges associated with sourcing fireworks:

“90% of fireworks are from China. We're celebrating with communist product being shot into the air to celebrate our independence.”
[03:24]

China's dominance in fireworks manufacturing stems from its long-standing tradition, cheaper labor, and lax regulations. Most fireworks used in the U.S. are produced in Luoyang, Hunan:

“Luoyang, Hunan. China is the capital of fireworks manufacturing for the world... They have huge factories that weave around these ridges in these hills, because that way if you do have an accident, it's going to blow out into the valley.”
[08:18]

Economic Challenges: The Ding Monopolization

The logistics of importing fireworks are controlled by a single individual, Ding Yan Zhong, known as Mr. Ding. His near-monopolistic control over shipments has led to increased costs and limited flexibility for U.S. fireworks companies:

“He has a stranglehold on the shipments of fireworks. There have been some big players here in the US that have gone their own way, but then he has retaliated, which has made a very financially challenging situation for some people.”
[11:09]

The consolidation of fireworks exports under Mr. Ding has quadrupled shipping costs, and potential tariffs could exacerbate these issues:

“The Trump administration's vacillating tariffs on China are likely to drive up that cost even further. Johnson says that even a 30% tariff could put a wrench in America's future celebrations.”
[12:20]

Designing a Spectacular Display

Creating a fireworks show is both an art and a science. J.J. Brah meticulously designs each display, synchronizing fireworks with music to enhance the audience's experience:

“The show is designed by me on a computer with computer software... The idea is really to create scenes in the air.”
[17:05]

Different types of fireworks, such as peonies, willows, and dahlias, are employed to produce varied visual effects. The chemistry behind the colors is complex:

“You've got strontium salts for red. You've got barium for green. You've got sodium for yellow. Everyone has their copper salts for blue.”
[09:48]

However, achieving certain colors, like vibrant blue, presents challenges due to precise temperature requirements.

Execution and Safety

On the day of the event, J&M Displays coordinates a massive logistical effort involving setting up launch equipment, loading shells, and ensuring safety protocols are strictly followed. Mark Johnson describes the transition from traditional hand-fired methods to modern electronic firing systems:

“These days, most shows are controlled wirelessly using an electronic firing system. One push of a button on a computer can trigger an entire 20 minute show from a safe distance.”
[21:04]

Despite technological advancements, risks remain. A notable incident in San Diego in 2012, where a computer glitch caused an unintended rapid launch of fireworks, serves as a cautionary tale:

“You know the hours of work that went into it... and then something happens. I mean, that's a terrible feeling.”
[21:48]

Financial Breakdown of a Fireworks Show

The cost of a fireworks display can vary widely, from a few thousand to several million dollars, depending on the scale and complexity. For a typical show costing around $30,000, the budget is allocated as follows:

• Insurance: 10%
• Shooters' Wages: 10%
• Hazmat Delivery: 12%
• Miscellaneous Costs: (e.g., travel, accommodations)
• Fireworks Budget: The majority, ranging from $10 to $300 per shell, accounting for factors like size, type, and visual effect.

[06:51 -07:21]

The Grand Finale: Building Suspense

A fireworks show's finale is crucial, often comprising 20-25% of the budget. It is meticulously designed to build suspense and deliver a memorable climax:

“You have to execute it in a way that builds suspense... you could send up too many shells at one time and all you would see is a whiteout condition.”
[19:02]

Techniques like finale strings, where multiple shells are ignited in quick succession, help create dynamic and impactful finales without overwhelming the audience.

Personal Sacrifices of Fireworks Professionals

The demanding nature of coordinating multiple shows, often across different locations in a short timeframe, takes a toll on the personal lives of fireworks professionals. J.J. Brah reflects on the challenges:

“Most of us are working anywhere from three to five shows in a row... Sleep is at a premium, but the love of it is really what keeps us all going.”
[22:23]

Conclusion

Fireworks displays are a blend of artistry, engineering, and economic strategy. From sourcing materials internationally to designing synchronized visual spectacles, the process is complex and fraught with challenges. Despite these obstacles, fireworks professionals like J.J. Brah and Mark Johnson continue to create awe-inspiring shows that light up the skies and celebrate American traditions.

Notable Quotes

• “You've got heat, you've got the light, the sound, crackling fire. Pyrotechnics is just man controlling this ominous force.”
  – Mark Johnson, Vice President of J&M Displays
  [02:28]

• “Our inbox is always open. All right. Until next week.”
  – Zachary Crockett
  [22:52]

Further Engagement

Listeners interested in the economics behind everyday phenomena are encouraged to subscribe to The Economics of Everyday Things and explore more episodes that uncover the hidden stories behind the mundane aspects of daily life.

Transcript

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[Narrator]

It's a lot of pressure on the Fourth of July when you're out there.

[Zachary Crockett]

That's J.J. brah. He's a fireworks choreographer with J and M Displays, one of the nation's leading pyrotechnics companies.

[Narrator]

It could only be 500 people at a country club, or it could be 50,000 people on the lakeshore. All those people came out to have a good time and they came out with their families and they're expecting something to happen at the end of the night. That pressure sort of builds as we approach, you know, 7, 8 o' clock, 8:30, 9 o' clock. You know, you start thinking, I really need to get this thing to go. It's not maybe this will go. No, this has got to go. And if it doesn't, you have a big problem.

[Mark Johnson]

You push fire and the first thing you're going to feel is that thump in your chest. It's a huge relief to see that first spark hit the air.

[Zachary Crockett]

That's Mark Johnson. He's the company's vice president.

[Mark Johnson]

You've got heat, you've got the light, the sound, crackling fire. Pyrotechnics is just man controlling this ominous force. I mean, what greater Power godlike almost.

[Zachary Crockett]

In a typical year, there are an estimated 16,000 firework shows around Independence Day in America. Cities and towns plan these shows years in advance. And they typically bring in professionals like Brahe and Johnson. The work involves artistic design, rigorous safety precautions and international supply chains. Because America's cherished summer tradition is almost entirely reliant on global trade.

[Mark Johnson]

90% of fireworks are from China. We're celebrating with communist product being shot into the air to celebrate our independence.

[Zachary Crockett]

For the Freakonomics radio Network, this is the economics of everyday things. I'm Zachary Crockett. Today, fireworks shows. There are two sides to the fireworks industry. You have consumer fireworks. The Roman candles, sparklers and skyrockets that you can buy at retail stores and roadside stands. And you've got display fireworks, the larger and more powerful explosives you see in professional shows. Together, all of these fireworks make up a $2.8 billion business in the US and while the display side only makes up around 20% of that revenue, it's the engine behind every Fourth of July celebration in America. Fireworks shows go all the way back to the founding of the country.

[Mark Johnson]

John Adams stated in a letter in 1776 that he thought this event should be celebrated in the future with bonfires and illuminations. And that that following year in Philadelphia was the actual first fireworks display to celebrate our Independence Day.

[Zachary Crockett]

Today, says Mark Johnson, the tradition has been supersized.

[Mark Johnson]

Communities actually even compete. We want to have a bigger display than the next town over. It's a sense of pride that, you know, we're being more patriotic. We're doing the bigger and better than you folks.

[Zachary Crockett]

For years, a lot of cities and towns handled their own fireworks shows.

[Mark Johnson]

It used to be fire departments or Lions clubs, some organization would get together and raise money throughout the year for their display. They get a permit from the local government and purchase fireworks and they go out and fire their own display.

[Zachary Crockett]

Some towns still do things that way. But these days most municipalities choose to work with a private pyrotechnics firm like J and M Displays. They take care of the entire process. Sourcing the fireworks, designing the show, getting state and local permits, and orchestrating everything on the day of the event. For big display companies like J and M, Fireworks are a year round business. They work on shows for college football games, concerts and weddings. But most of the revenue is made surrounding the Fourth of July.

[Mark Johnson]

You're trying to do 70% plus of your business within a matter of three, four days.

[Zachary Crockett]

JM has a full time staff of 30 people and a network of more than 2,000 part time shooters, the people who are responsible for setting off the fireworks. Each year the company puts on around 600 4th of July shows simultaneously across the country, from small towns to big cities.

[Mark Johnson]

Milwaukee, St. Louis, New Orleans. They might have a four or $5,000 display, but we also do shows that are hundreds of thousands of dollars.

[Zachary Crockett]

The cost of a fireworks show can range from a couple thousand dollars to millions, depending on its duration and the size and number of the fireworks that are used. JJ Brah, the fireworks choreographer, says your average local show with musical accompaniment, say in a place like Rapid City, South Dakota might cost between 20 and 30 thousand dollars. All in J and M displays charges a single all inclusive fee.

[Narrator]

So let's say the client comes to us with a budget of $30,000. Insurance is typically 10% of the show. We have to pay our shooters and that's generally 10% of the show. We need a hazmat delivery driver. That's generally about 12%. Then after that we have miscellaneous costs like hotel costs and travel costs. And once we've taken out all those costs, we're left with what we call the fireworks dollars. And that's how much money is going towards the actual product.

[Zachary Crockett]

The bulk of the budget is spent on the fireworks themselves. Depending on the size and type, a single firework that you see exploding in the sky can cost the city anywhere from $10 to more than $300. Johnson says that this cost can partly be attributed to a tricky supply chain.

[Mark Johnson]

I'm the lead purchaser for for J and M displays. We used to work with over 11 different American manufacturers. Today there are very few American manufacturers. The bulk comes from China.

[Zachary Crockett]

China invented the first fireworks thousands of years ago. Today they still control the global market for them, largely because of lax regulations, cheaper labor, and long standing tradition. And it's likely that the fireworks you see at your local show in America were made in one city in particular.

[Mark Johnson]

Luoyang, Hunan. China is the capital of fireworks manufacturing for the world. You're talking about generations of workers that have traditionally worked at a fireworks manufacturing plant. They may during the summer season be out tending fields, but during the fall and winter, they're making fireworks. You've got huge factories that weave around these ridges in these hills, because that way if you do have an accident, it's going to blow out into the valley.

[Zachary Crockett]

The aerial display fireworks that are made in Luyang for commercial use are large spheres wrapped in paper, and they're filled with pellets that contain chemicals.

[Mark Johnson]

You've got a tumbler that you put Some of these chemicals in, and you start rolling little bitty balls of composition like little marbles. So you line up these little marbles in this hemisphere, and you have a time fuse that is inserted into this ball because you want this aerial shell to break at a certain height in the air. At the base of that, you're going to put a little pouch of black powder. When it gets ignited, it's going to ignite that time fuse and launch that ball up into the sky like a cannon.

[Zachary Crockett]

Those little pellets can be positioned in a number of ways inside the shell to create different patterns when they explode. They can also be made with chemicals that create different colors.

[Mark Johnson]

You've got your strontium salts for red. You've got barium for green. You've got sodium for yellow. Everyone has their copper salts for blue.

[Zachary Crockett]

Some colors are harder to make than others. You might notice that blue fireworks are a little less vibrant than red or green fireworks. That's because the copper chloride used to make blue has to be burned at a very specific temperature. If it burns too low, it won't be visible. And if it burns too hot, the color will fade to white. Fireworks manufacturers have been trying for several centuries to find a better alternative, mostly without success.

[Mark Johnson]

This is all chemistry behind the scenes to make those colors.

[Zachary Crockett]

Johnson visits the factories in Luoyang at least once a year to source fireworks for J and M. And he says the hardest part of the process isn't finding them. It's getting them back to the United States. That's because an estimated 80% of China's exported fireworks go through shipping companies controlled by one man, Ding Yan Zhong, or as he's known to industry insiders, Mr. Ding. His company's representatives, didn't respond to our request for comment, But Johnson says Mr. Ding is a force that everyone in the fireworks industry has to contend with.

[Mark Johnson]

He has a stranglehold on the shipments of fireworks. There have been some big players here in the US that have gone their own way, but then he has retaliated, which has made a very financially challenging situation for some people. Our people in China will book that shipment through whatever means possible. But, yeah, it's the same person that controls it.

[Zachary Crockett]

As the Washington Post reported, Mr. Ding rose to power around 15 years ago when the Chinese government decided to consolidate its fireworks exports into the hands of a few people. Today, more than £200 million of fireworks move through his network of trucks, warehouses, and cargo ships into America every year. The shipping cost for fireworks is now four times higher than it was before. Mr. Ding established his near monopoly.

[Mark Johnson]

Our shipping cost on a container, we'll say 20,000 range, give or take.

[Zachary Crockett]

The Trump administration's vacillating tariffs on China are likely to drive up that cost even further. Johnson says that even a 30% tariff could put a wrench in America's future celebrations.

[Mark Johnson]

2026 is the 250th anniversary of the United States. We have been taking contracts for that date for a couple years already. Many of the companies here are saying don't ship because I don't want to pay the tariff. When those fireworks warehouses in China get, the Chinese government is going to shut them down. I think we're creating our own disaster here for a shortage of display fireworks for our big celebration after J and.

[Zachary Crockett]

M Displays has managed to get all the fireworks they need. They have to design and put on a successful show and that has its own challenges.

[Mark Johnson]

You've got to have a tremendous amount of budget to maintain attention. If you have anybody looking at their watch, you've lost them.

[Zachary Crockett]

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[Zachary Crockett]

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[Narrator]

We are out in the country. There's no major city anywhere near us. And for that matter, not any small town really near us as well.

[Zachary Crockett]

Again, that's JJ Brah, who designs shows for J and M. If you were.

[Narrator]

To do an overhead view of our facility, it might look like a trailer park, actually, because we have a 40 acre facility, we probably have 50 or 60 containers, storage containers in groups of three, spread out all over the facility, 300 yards apart. And when that shipping container comes in full of product, we unload that thing by hand.

[Zachary Crockett]

Fireworks are classified by size, color, and most importantly for audiences, visual effect. The classic spherical explosions are called peonies or chrysanthemums. There are willows which result in long dropping tails of sparks, strobes that flicker on and off, and dahlias that make starfish like shapes. You have pistols, palms, brocades, waterfalls, bouquets, spinners, and even fireworks that make recognizable patterns.

[Narrator]

For example, rings and crosses, butterflies, hearts, smiley faces. In a perfect world, that happy face shell goes up in the air. It explodes on a perpendicular plane and we are seeing the eyes at the top and the mouth at the bottom. And everyone says, oh, that's a smiley face, no doubt about it. Can you believe that? But you might also get that same smiley face shell go up and it breaks on a horizontal plane and all you see is a line in the sky. You can't predict something like that for sure.

[Zachary Crockett]

Before designing a show, Brah tests and measures each type of firework.

[Narrator]

We'll push the button to launch the shell, and one person will time the lift of the shell. And that's the point from when we push the button until the shell explodes, and then another person will time from when the shell explodes till we have all dark sky. And that's considered the duration. We enter those into our system and associate them with each individual effect.

[Zachary Crockett]

And getting precise reads on the lift and duration allows Brahe to perfectly time the fireworks with music, something a lot of cities ask for.

[Narrator]

The show is designed by me on a computer with computer software, and, and I'm able to take the music, load it up onto the software, and as I feel inspired, I start putting the shells into the show in certain areas to make it look cool. If the music's really dramatic and sweeping and that kind of thing, I might use long duration shells like willows to sort of match the music. Other times you'll have pop music which is really moving along at a good clip. And you might go another direction with short duration shells, or you might use all certain colors. The idea is really to create scenes in the air.

[Zachary Crockett]

Designing a show that fits perfectly with a city's budget is its own art form.

[Narrator]

You may have a community that has very little money, but they want a very long show. And so you'll be shooting one shell at a time with five or six seconds between the shells, and you satisfy their time requirement. However, it might have been the most boring show you've ever been to. You kind of want to spread the shells around so you have some less expensive ones so we can get the quantities up. Some really expensive ones that just do fantastic, amazing things that will make the crowd really gasp.

[Zachary Crockett]

Regardless of a city's budget, there's a general limit for the length of a show.

[Narrator]

It doesn't matter how much money you have. I'm going to concentrate all those shells into 20 minutes. People get bored after 20 minutes with a fireworks show. They've seen enough.

[Zachary Crockett]

One thing crowds can never get enough of, though, is the grand finale. Bra says it's the most important part of the show. It often counts for 20 to 25% of the overall budget. And it has to be executed in a way that builds suspense.

[Narrator]

You can start small and then work progressively up so you have lower elevation finale shells. And then it goes up to higher and higher and higher. You build the sound as it goes. I oftentimes like to start the finale quiet. And as it progresses, you start adding the salutes and the booms and the whistles and that kind of thing. But mostly it's the timing of the finale. If you're not careful, you could send up too many shells at one time and all you would see is a whiteout condition where all these shells explode and you just get a white sky. One trick that we use are actually finale strings, and Those are generally 10 individual shells that are strung together. And you only have to light one fuse and it'll launch all 10, maybe a 10th or a 20th of a second apart.

[Zachary Crockett]

On the morning of the big event, J and M works with a network of contracted shooters. They're the boots on the ground in charge of unloading fireworks on site, setting up equipment, and making sure the pre programmed shows go smoothly. Here's Mike Johnson, the company's vice president.

[Mark Johnson]

Day starts. You pull up with the truck, you set up all these, we call them racks. It's just a frame that holds all the mortars or launch tubes that the fireworks are launched out of. We load the pyrotechnics, the shells, into these mortars. We wire everything up with whatever firing system you might be using, and then it's the hardest part of the whole display day, and that's waiting until showtime.

[Zachary Crockett]

Johnson says fireworks shows used to be hand fired, and the job was much riskier.

[Mark Johnson]

Hand firing is a completely different animal. They're fire and brimstone. You're being covered in sparks. You've got people walking briskly with explosives, reloading those tubes, going back to a box to get more fireworks as the shooter is pulling the cap, lighting that shell, backing away, and you hear that flying thump and hopefully that shell's going up.

[Zachary Crockett]

These days, most shows are controlled wirelessly using an electronic firing system. One push of a button on a computer can trigger an entire 20 minute show from a safe distance. But technology doesn't mean a show is foolproof. In 2012, a computer glitch caused a fireworks show in San Diego to launch prematurely. All, all at once. $125,000 worth of fireworks intended to last 16 minutes exploded in 30 seconds. The company behind the failed show, Garden State Fireworks, offered the city a replacement show the following year at no cost. Johnson knows the operator and says he feels his pain.

[Mark Johnson]

You know the hours of work that went into it back at the office, the hours of work went into it on the day you're working so many people to make this 15, 20 minute display of enjoyment for these people, and then something happens. I mean, that's a terrible feeling.

[Zachary Crockett]

Most of the time, though, the show goes off without any problems and the fireworks illuminate the night sky with all kinds of colors, shapes and patterns. But one person you won't find in the crowd watching is JJ Brah, the show's designer.

[Narrator]

Unfortunately, my fourth of July traditions were completely ruined when I started working for this place. Most of us are working anywhere from three to five shows in a row. I end up at a community celebration on July 3rd. On the 4th of July, I find myself shooting at a local country club. And the next day I might be in Des Moines shooting a show there. Sleep is at a premium, but the love of it is really what keeps us all going.

[Zachary Crockett]

For the Economics of Everyday Things, I'm Zachary Crockett. This episode was produced by me and Sarah Lilly and mixed by Jeremy Johnston. We had help from Daniel Moritz Rapson. A lot of listeners have written in to request this topic, including Jared Lawson, Greg Barklow, Wade Hammond, Scott Payne, Ella Haugen and Jerome Lecomte. If you have an idea for an episode, feel free to email us@everyday thingsreconomics.com Our inbox is always open. All right. Until next week.

[Narrator]

We have test fires at night during the week, that's a pretty good time. The neighbors get a free fireworks show, you know, 10 or 12 times a year.

[Zachary Crockett]

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