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.