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.
As we look forward to Q4 of 2023, the year has been a mixed bag of outcomes for disposable gloves.
The pandemic boosted demand, and more gloves are used in North America than ever. At the same time, many large distributors and end users are still dealing with excess inventory, as prices have dropped and challenges with labor, logistics, and factory utilization continue.
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.
The push is on to return workers to offices across the country. Both commercial and government entities are exerting pressure to persuade currently remote employees to come in from the field, at least three days a week and in many cases full-time.
That puts janitorial and sanitation workers in the spotlight once again. Offices that have sat vacant since the pandemic first spread in 2020 again will have to be regularly cleaned and sanitized.
Of all the hands AMMEX has protected across countless industries during its 35 years in business, automotive service and repair is where we thrive.
Our nitrile disposable gloves set the industry standard well more than a decade ago. Since then we have become the leading independent distributor of single-use gloves in North America. Our Gloveworks brand is synonymous with top-quality hand protection, and our service is renowned for helping customers find the right glove for the job, every time.
Sustainability has evolved from buzzword to mantra to guiding principle for many. Operating from the notion that resources are finite and should be used with a view toward long-term priorities, it’s pure in intent yet can be polarizing.
It is a topic that often comes up in conjunction with disposable gloves. Long the subject of pressure from activists and start-ups intent on somehow reinventing the product, single-use gloves have by their very definition proven elusive as the target of environmental crusaders.
The disposable glove market—like all markets—loves economic stability and predictability. Uncertainty will lead distributors, sellers, and end users to plan for the worst when it comes to pricing.
The first half of 2023 has been volatile for markets. Investors have had to contend with the possibility of a recession, a banking crisis, interest rate hikes (and pauses), sticky inflation, and a softening U.S. economy. The International Monetary Fund warned in the spring of volatile commodity prices posing economic challenges in coming years.
But this economy just won’t give in to negative expectations.
Does quality control in disposable gloves matter?
Of course it does, but it is likely that every glove supplier views it differently.
At AMMEX, we directly inspect every shipment right at the factory—100% of them, unlike any other independent glove supplier. We work with dozens of factories and trust them to follow our detailed specifications. But, in the words of Ronald Reagan, we “trust, but verify.”
