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Tag: #AMMEX

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Q2 Market Update: Tariffs and Production Costs

Q2 Market Update: Production Costs

Third in a series

Our Q2 Market Update covers the potential impact of tariffs, but we were never under any illusion that it would age well with all the rapid news and changes.  As of mid-May, while many reciprocal tariffs remain on hold, last week, the US and China announced a reduction in tariffs, with US tariffs on China reduced to 30% for 90 days.

We expect the tariff news to continue and news around this topic to remain dynamic. However, when it comes to disposable gloves, many other factors that impact glove production costs continue to develop. Raw material costs remain the most significant expense category, accounting for a large portion of total disposable glove production costs.

Nitrile butadiene rubber (NBR), a primary component in nitrile gloves, could experience supply constraints due to production shifts out of China, maintenance at major chemical facilities, and increasing competition from the automotive and construction industries for nitrile-based gloves.

Meanwhile, manufacturing bottlenecks are appearing as production facilities are challenged with labor costs, rising energy costs, implementation of new quality control measures in the wake of regulatory changes, and technological transition challenges as manufacturers upgrade equipment.

Price volatility for natural rubber latex has decreased due to a balanced supply from Southeast Asian producers. NBR prices, however, remain elevated due to continued strong demand and petroleum price fluctuations. The price spread between natural latex and nitrile has narrowed compared with historical averages.

Another key variable is energy, which represents up to a growing portion of production costs and has significant regional variations. Among the cost factors are electricity prices, with manufacturing facilities in Southeast Asia facing 5-7% higher electricity costs compared with 2024.

What happens with tariffs will continue contributing to all the abovementioned factors. Besides the direct added cost, tariffs may also reshape the existing trade routes, leading raw materials, labor, and products to move in different ways in the future. Stay tuned for more updates.

Download our Q2 Disposable Glove Market Update.

Missed our first post of the series: Q2 Market Update: Tariffs Take Centerstage? Check it out here.

Missed our second post of the series: Q2 Market Update: Logistics Always a Factor? Check it out here.

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Q2 Market Update: Logistics Always a Factor

Q2 Market Update: Logistics Always a Factor

Second in a series

As outlined in our Q2 Market Update, despite the current global tariff wars, the demand outlook in the disposable glove industry remains steady. Gloves are a need-based product; customers use them regardless of market conditions. Global demand for medical and industrial-grade nitrile gloves continues to expand with consistent consumption patterns.

Ocean freight rates continue to be volatile. The industry survey by maritime consultancy Drewry reveals that most container shipping stakeholders expect Suez Canal transits to resume before the end of 2025 while bracing for escalating U.S. tariffs that could reshape global trade patterns.

Rates will likely remain volatile as port congestion continues in major Asian manufacturing hubs, fuel costs rise due to geopolitical tensions in oil-producing regions, container shortages are exacerbated by uneven global trade recovery, and implementation of new environmental rules requires shipping lines to invest in cleaner technologies.

The final leg of distribution has also become increasingly expensive, with last-mile delivery costs rising. Increases are attributable to labor shortages in the trucking and delivery sectors, higher fuel costs for ground transportation, increased warehousing costs as distributors maintain larger safety stocks, and regional regulatory changes affecting distribution networks.

Download our Q2 Disposable Glove Market Update.

Missed our first post of the series: Q2 Market Update: Tariffs Take Centerstage check it out here.

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Q2 Market Update: Tariffs Take Centerstage

Q2 Market Update: Tariffs Take Centerstage

First in a series

As we progress into Q2 2025, the disposable glove market and the rest of the business world are fixated on the impact of tariffs. Naturally, this is one of the main topics for our Q2 Market Update and will continue to be dynamic throughout the coming weeks.

As of mid-April, the U.S. government has implemented tariffs of up to 145% on all products from China and 10% on products from across the globe. It appears to be using the potential of additional tariffs as leverage or a tool to remake trade agreements worldwide. However, that may further scramble supply chains and trade flows that are already changing as companies seek alternatives to China as the source of their goods.

Experts say the result could be a domino effect of protectionism, with countries turning inward and raising tariffs in response to American trade barriers. The upheaval could also generate a new cast of regional alliances and ultimately reduce the importance of the United States in trade with Asia.

The disposable glove market is likely to feel the impact of trade wars simply because over 90% of production is outside of the United States and is beholden to global supply and logistics networks.

Download our Q2 Disposable Glove Market Update.

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For Industrial Hand Protection, Gloveworks Nitrile Is the Solution

It’s safe to say that in the manufacturing industry, hand protection is a priority.

From working with machinery to encountering chemicals and hazardous materials to protecting products from contamination, single-use gloves factor into just about any scenario that involves making things. Some jobs require specialty protection like extra-thick neoprene, cut-resistant, or “armored” and padded work gloves, but just about everyone needs some degree of hand safety.

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