How to Build a Manufacturing Strategy Ahead of the Chinese New Year

Chinese New Year might seem far away, but in manufacturing terms, 100 days is a blink of an eye. For many companies, that’s not enough time to move through DFM, build prototypes, open tools, and complete a pilot run before the shutdown begins. This is why now (late October) is the critical moment to plan your production and logistics strategy. This is where planning your manufacturing strategy around the Chinese New Year becomes important.

Even if your products are assembled outside of China, such as in Thailand or Vietnam, the Chinese New Year still matters. Many subcomponents, packaging materials, and raw inputs still flow from China, and a single delayed component can hold up an entire production line. Understanding this ripple effect is essential to prevent interruptions.

This blog will teach you about planning, communication, and timing. Knowing your suppliers’ shutdown schedules, accounting for shipping congestion, and building in enough buffer for production and logistics can make the difference between shipping before the Chinese New Year or waiting another month to ship. 

Understanding the Impact of the Chinese New Year on Manufacturing

Chinese New Year isn’t just a few days of celebrations; it’s the single largest annual disruption to global manufacturing. Nearly every factory in China closes for an extended period, with shutdowns typically ranging from one to three weeks. But the true impact goes beyond the days factories are officially closed. Many workers travel back to their hometowns, which might be on the opposite side of the country, and some do not return immediately, or at all, creating labor shortages and slower ramp-ups when production resumes. 

This slowdown affects every stage of the supply chain. Component suppliers, packaging factories, mold makers, and logistics providers all pause operations. Even customs offices and freight companies operate with limited capacity, leading to backlogs at ports and warehouses. For companies dependent on Chinese suppliers, this can mean delayed shipments, missed order deadlines, and extended lead times that last well into March.

Understanding this pattern helps you prepare in advance. There is no way to fight against the holiday to keep our supplier open so you should try to build your manufacturing strategy around it. By forecasting demand early, confirming supplier schedules, and planning logistics in advance, you can avoid the annual rush and ensure your supply chain stays resilient during one of the busiest times of the year.

Assess Lead Times and Project Status

Before the Chinese New Year shutdown, one of the most important steps is to evaluate where each of your projects stands and how much time you realistically have left. If you are still in the development phase, design for manufacturing (DFM) or prototyping, it’s important to recognize that it’s nearly impossible to complete the entire cycle from design to mass production within 100 days. In most cases, projects that haven’t yet started tooling should be planned to resume after the holiday rather than forcing an unrealistic timeline that could compromise quality or cost.

For products already in production, now is the time to map out every step of the process. Review your current lead times and confirm production schedules for all open purchase orders. If your product involves multiple components or an electromechanical assembly, make sure to identify potential bottlenecks. 

A practical way to manage this is by creating a timeline or a Gantt chart that shows the number of days you need for each task, such as procuring materials, fabrication, assembly, quality control, and more. This will help you spot risks early and communicate them clearly with your suppliers or contract manufacturer. Remember that any delay at one stage can cascade through the entire build, especially as suppliers start to prioritize their production queues before the holiday rush.

Communicate with All Suppliers

One of the biggest mistakes companies make before the Chinese New Year is assuming that every supplier follows the same holiday schedule. In reality, closure dates vary widely. Some suppliers may only close for 10 days, while others may shut down for three weeks or longer. Even more importantly, many sub-tier suppliers, such as raw-material vendors, mold shops, anodizing facilities, or packaging providers, often close earlier than final-assembly factories.

To avoid surprises, reach out to every supplier who is involved in your product. Ask them to confirm their planned shutdown and restart dates and when they will stop accepting new orders. This information will help you build a more accurate production calendar and determine your last viable production start date before the break.

If you work with a contract manufacturer like EPower Corp, ask them to consolidate the closure schedules of their sub-suppliers and material vendors. This ensures no weak links in your supply chain and gives you visibility into potential risks. Clear communication is your best tool to avoid last-minute delays, especially when suppliers are balancing multiple customer orders in the final weeks before the holiday.

Plan Production and Shipments Strategically

Once you understand your suppliers’ shutdown schedules, the next step is to organize your production and logistics around them. In the final month leading up to the Chinese New Year, factories across China face increased pressure to fulfill as many orders as possible before closing. This rush often creates capacity bottlenecks, longer lead times, and quality risks as suppliers push to meet tight deadlines.

To minimize disruption, aim to complete your last shipment at least two weeks before the official start of the holiday. Shipping any closer than that increases the risk of your goods getting stuck at the port due to congestion or lack of available containers. Space on vessels becomes scarce as exporters race to send out last-minute orders, and inland trucking also becomes more difficult to secure.

It’s also wise to build buffer inventory to cover several weeks after the holiday. Production rarely resumes at full speed immediately after the break, and suppliers will have just a fraction of operators return to work. Having extra stock on hand helps maintain customer deliveries while your suppliers ramp back up.

If your company places recurring orders, confirm your production slots early. By December, most factory schedules start to fill up quickly, and orders that aren’t locked in may be delayed until late February or even March. Securing your spot ensures that your products remain a priority as your supplier manages the pre-holiday workload.

Prepare for the Post-Holiday Ramp-Up

You also can’t just plan for the pre-Chinese New Year. You also need to take into account that different suppliers also come back from the holiday at differnet times. The first few weeks after the holiday can be just as challenging as the weeks before it. Many factories return with only part of their workforce, as some employees choose to change jobs or stay longer in their hometowns. This results in slower production rates, training gaps for new hires, and occasional quality inconsistencies during the early restart period.

To manage this transition smoothly, expect a slower ramp-up in late February and early March. Don’t plan your first major shipment or product launch immediately after the holiday. Instead, allow your suppliers one to two weeks to stabilize their operations again.

Quality control should be a major focus during this period. Encourage your supplier to revalidate their first production batch after the break, especially if your products require tight tolerances or complex assemblies. Scheduling a third-party inspection or review during this phase can also help ensure that quality standards haven’t slipped.

Finally, review your logistics plans after the holiday. Port congestion often lingers as shipments that were delayed before the break start to move out again. Staggering your POs or maintaining safety stock can prevent unnecessary pressure on your supply chain as the market normalizes.

Leverage the China +1 Strategy

Many brands today have already diversified production through a China + 1 strategy, by assembling products in countries like Thailand, Vietnam, or Malaysia to reduce tariff exposure and geopolitical risk. While this strategy is smart and provides flexibility, it doesn’t eliminate your reliance on China entirely. The reality is that a large portion of the regional supply chain still flows through China, especially for components such as batteries, precision metal parts, PCBs, and specialized plastics.

Even if your final assembly is done outside China, a delay in one small component can disrupt the entire production schedule. For example, a supplier in Thailand might be waiting on a specific PCB or connector that’s produced in Shenzhen. If that Chinese sub-supplier shuts down early for the holiday, your Thailand assembly line may be forced to pause as well.

To minimize this risk, map your complete supply chain dependencies, starting with raw materials all the way to final assembly. Ask your contract manufacturer to confirm where each component originates and what the lead times are leading up to the Chinese New Year. It’s also smart to order long-lead items in advance or have your contract manufacturer pre-stock critical components before suppliers close.

The most resilient China + 1 strategies are those that treat the entire region as one interconnected ecosystem. By recognizing how dependent Southeast Asia remains on Chinese materials and parts, you can plan ahead to keep your global production uninterrupted through the seasonal slowdown.

Conclusion: Planning your Chinese New Year Manufacturing Strategy

The Chinese New Year shutdown happens every year, yet many brands still find themselves caught off guard by its impact. The key to avoiding costly delays is not to react at the last minute, but to plan your manufacturing strategy well in advance. 

The companies that know how to plan well, use this period before the holiday to communicate early, lock in production slots, and finalize shipments at least two weeks before the holiday. They also prepare for the slower restart that follows and ensure their suppliers have adequate workforce and materials in place to maintain quality and output after the break.

Even if your company has shifted part of its production to Thailand or Vietnam, it’s important to remember that the Chinese New Year ripple extends beyond borders. Many regional suppliers still depend on China for key components, materials, or packaging. 

At EPower Corp, we help customers plan ahead by coordinating production between our facilities in China and Thailand. This dual-location approach allows us to build ahead of the holiday, manage supply chain dependencies, and ensure our customers continue receiving consistent production and on-time deliveries, no matter the season. If you are interested to learn more about us then please reach out. We would be happy to discuss with you.