Most disposable glove factories prefer to run their production lines almost non-stop to make money, in a concept known as factory utilization. It is common that a factory needs a 50% utilization rate to break even.
Throughout 2023, factory utilization rates for most of the disposable glove industry have been well below 50% because of massive capacity added during the pandemic and high excess inventory amounts at the end-user level.
Costs of doing business in the disposable glove market seem to be leveling off after several years of big swings. United Parcel Service and the Teamsters reached a deal to avoid a strike by getting the raises the drivers wanted. Thus, higher labor costs will likely affect the price of most goods they transport.
The International Longshore and Warehouse Union and Pacific Maritime Association also forged their own deal after months of labor strife; you can expect that agreement to eventually factor into product costs as well.
Every quarter, AMMEX examines the impacts of key drivers on the disposable glove market.
The market, and the aspects of distribution surrounding it, are extremely nuanced. We don’t have a crystal ball, so we’re not telling you what will happen. We’re not even trying to make predictions—our goal is to highlight the primary factors influencing the market.
If there was ever an industry that demanded making hand protection a priority, it is manufacturing.
From working with machinery to encountering chemicals and hazardous materials to protecting products from contamination, gloves factor into just about any scenario that involves making things. Many jobs require specialty protection like extra-thick neoprene, cut-proof, or “armored” and padded work gloves, but just about everyone needs some degree of hand safety.
