[This is a guest post from Hope Binegar, ePromos’ Senior Merchandising Manager – Vendor Relations]
Earlier today, I received a note from one of my suppliers that read:
“Yesterday, one of the largest suppliers to DRAM and Nand flash memory in the world suffered a massive fire in their factory. It is difficult to estimate the fire’s impact to the market, however we anticipate this to have an immediate impact as the factory is focused more on Nand flash memory (the kind found in our flash drives). This fire, coupled with upcoming Chinese national holidays, will likely lead to price increases.”
I quickly began to alert the team here at ePromos of a possible price increase of one of our best-selling items: custom USB drives. Being from the Gulf Coast, it’s like making sure your gas tank is full before a hurricane hits – get it before the price goes up.
However, several stories began to pop up from creditable sources saying:
“A fire at a SK Hynix memory chip plant in Wuxi, China will have no impact.”- PC World
“Supply volume won’t be affected.” – Bloomberg
“No material damage” –ZDNet
Did I overreact sending out the update? Is this as bad as I was thinking?
I quickly answered my own question. No, sounding the alarm wasn’t the wrong thing to do, and it wasn’t premature. If my disaster experiences have taught me one thing, it’s prepare for the worst and hope for the best.
Like in anticipation of any storm, the prices will rise. It’s the speculation of what will happen that will demand it.
Prices did go up as much as 20% today with some of my factories. I do expect it to level off quickly, but only time will tell.