Global Turmoil & The Zhongshan Paradox: Why Factory Orders are Booming Despite Skyrocketing Costs
Date: March 5, 2026 Posted by: Charlie Chan, Founder of STU Supply Chain The global supply chain is facing a "perfect storm." As geopolitical tensions escalate—specifically with recent military actions involving the US, Israel, and Iran—the ripple effects are hitting the manufacturing heartlands of China faster than anyone anticipated. The Crisis: Raw Materials are Surging Today, I spent the day on the ground in Xiaolan Town, Zhongshan , visiting several of our long-term manufacturing partners. The sentiment among factory owners is one of intense pressure. Due to the global instability, raw material prices (especially metals and plastics) are skyrocketing. For many owners, the biggest "headache" right now is simply figuring out how to issue quotes for March. Costs are moving so fast that a quote sent on Monday might be obsolete by Friday. The Paradox: Inquiries are Exploding However, there is a fascinating silver lining. Despite the price hikes, inquiries from t...