China's Fireworks Valley

Michael Girdley shares a story about visiting the "Silicon Valley" of fireworks manufacturing in China.

"The process of going to buy fireworks - there is a Silicon Valley of fireworks and it's in China. It's about a 2-hour flight from Hong Kong in the southeast of China. You go to this place and it's the same thing every day. The Chinese take you to a fancy dinner, always the same restaurant, same food. Then they take you to a factory, shoot you some fireworks, and hopefully you buy them. This happens for 6 days in a row.

After the 4th year of doing that, I was there with the team and we were driving along. I was just so sick of going to yet another fireworks factory because they all look the same - just the same little old ladies doing the same thing. All the fireworks workers are like 70 years old - they can't hire young people to work in fireworks factories.

I saw something and asked 'What is that over there?' They said 'Oh that's the box factory.' I said 'A box factory? Let's go over there.' The driver pulled over, went in, and the Chinese seller took us for a tour. It was an opportunity to understand how their culture really functions. He told us they're having a problem making boxes now because they can't put the wastewater directly in the river anymore. That's why things are so cheap in China."

MG

Michael Girdley

Business builder and investor. 12+ businesses. 30+ years of experience. 200K+ readers.

CEO of an 11-company holding company and chairman of Dura Software, San Antonio's second-largest firm. Partner at Geekdom Fund, a seed-stage tech VC that's invested in over 50 high-growth companies.

Content creator focused on SMB M&A, sharing insights through Twitter, a newsletter, and the Acquisitions Anonymous podcast.

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