Further problems are potentially set to hit the nursery industry. Following on from Covid-related factory closures, logistical issues and freight rate increases, severe flooding is now affecting areas of China where factories manufacturing leading brands are located.
Weather officials say the area is experiencing its highest rainfall since 1961 and China’s manufacturing hub of Guangdong has raised its flood warning to the highest level, spurring more evacuations and threatening further supply chain disruptions in an economy which has yet to recover from widespread Covid lockdowns in major cities.
Shaoguan, a major industrial production centre in the north of Guangdong that borders Hunan and Jiangxi provinces, told most firms to halt output and suspended public transport after a “severe flood disaster” in the past few days. The province hosts the headquarters of companies like Huawei Technologies Co. and Midea Group Co.
China’s economy is now estimated to expand just 4.3% this year, well below the government’s target of around 5.5% and any threat to manufacturing, shipping and logistics operations could deal another blow to an economy.