On U.S. Shores: Domestic Logistics Further Add to Glove Costs

Driving a truck down an empty highway toward the sunset.

Domestic transportation prices—another important variable in the overall cost of single-use gloves—spiked during the pandemic. They have been dropping, but are unlikely to return to pre-pandemic levels due to the cost of labor and the general impact of inflation and higher interest rates.

Most companies that need warehousing to store imported products, such as disposable gloves, have seen significant price increases over the past two to three years. Even as supply chain inflation slows, warehouse rates are high because there is a lot of inventory, which leaves less space for new product.

The U.S. labor market remains dynamic, with low unemployment—the most recent data, from March, pegged it at 3.5 percent. Most employees across the U.S., especially at the lower scale, have experienced wage inflation over the past three to four years. Rising interest rates will bring additional costs for most companies as they face the need to spend more to finance debt loads.

Forecasts for the remainder of 2023 are as varied as the analysts making them. Some predict that economic weakness will intensify and spread more widely throughout the U.S. economy over the coming months, leading to a recession. Others see higher growth and a continuing strong labor market, despite the Federal Reserve’s efforts to slow hiring by raising interest rates.

Supporting our distributor partners

AMMEX has been in the disposable glove business for 35 years, and we dive deep to understand every market aspect. We are not prediction experts, but our experience allows us to provide our customers with reliable information, clear insights, and outstanding support.

In addition, we help our customers navigate the market through our commitment to quality control, compliance, reliability, and overall speed in our responses to market conditions.

Our mission remains centered on helping our partners improve workplace safety through disposable hand protection.

For the full story, download our Q2 Market Update.


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