Empty Sky on July 4? Blame the Economy

No such luck, however, for Cocoa Beach, Fla. The city's annual July 4 fireworks display is traditionally funded by local businesses. But this year, the city cancelled the show after a major sponsor pulled out. City spokesman Jerry Stansfield said economic conditions were to blame.

Big show, small show or no show? Budget crunches in at least a handful of U.S. cities and towns mean that some fireworks celebrations will get the axe.

(AP Photo/Getty Images)

The Fire in Fireworks

In California, meanwhile, it's Mother Nature, not the economy, that explains why some communities aren't holding fireworks displays this year.

"The conditions in California, generally, are extremely dry, and the humidities have been very low," said Mike McMurry, the chief of the Scotts Valley Fire Protection District, about 70 miles south of San Francisco.

McMurry said three major fires had recently damaged area homes. The risk that fireworks could start another made it worth it to cancel this year's Scotts Valley display.

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McMurry said the cancellation of the official show will dissuade local residents from lighting their own fireworks. Backyard fireworks are illegal in Scotts Valley.

"If the show goes on, folks think that that's an opportunity for them to use their own fireworks," he said. "We're really trying to get the message out that this is the year not to do that."

Trouble Overseas

If fire hazards don't stop backyard pyrotechnics shows this year, the rising costs of fireworks might.

According to the American Pyrotechnics Association, the cost of fireworks supplies produced in China -- which manufactures 98 percent of the amateur fireworks and 80 percent of the professional fireworks used in the United States -- has risen at least 30 percent, thanks to increases in expenses for labor, raw chemicals and paper products.

Julie Heckman, executive director of the APA, said that U.S. retailers will absorb part of the cost increases, but consumers will likely see price hikes of 10 percent to 15 percent.

Further compounding the issue are China's shipping woes. In recent months, shipments from the country have slowed significantly after two Chinese ports were closed to fireworks cargo.