Third in a series
We often get questions about whether currency exchange rate fluctuations will affect glove prices. The answer is maybe—but the reality is other factors figure more prominently. Even if fluctuations do have an effect, it’s not definitive—and it takes a long time to happen.
A stronger dollar might make it cheaper for Americans to buy some foreign goods and to travel abroad, but at the same time U.S. companies that export products may become less competitive.
Outside the United States, a strengthening dollar stokes inflation in countries with weaker currencies, which makes it harder to pay debts denominated in dollars. That weighs down the global economy.
AMMEX obviously manages its supply chain with an eye to the future. Most glove orders are placed many months in advance, and while currency fluctuations do happen, they are unlikely to cause significant loss or gain in the short term.
The disposable glove market has a lot of rough edges on a day-to-day basis, with a great deal of data to manage. What we do is smooth out those edges to reduce the confusion for our customers.
Whether the dollar is higher or lower, the impact is going to take a while to play out. The gloves sold in the market today were ordered months ago, as this is a multi-month supply chain. Because the supply chain is so long, nothing involving currency is going to happen quickly. In January 2025 we are placing orders for October or November.
Short-term currency exchange fluctuations have limited traction on the price of disposable gloves. The market is complex. We will continue to keep you informed about fluctuations large and small.
Download the Q1 Disposable Glove Market Update. Next week: Why work with AMMEX?