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.
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.
As we’ve mentioned in recent weeks, despite overall volatility in global markets, disposable gloves are in a good place.
The first half of 2023 has seen a number of factors pose challenges: threats of recession, interest rate hikes, persistent inflation, and a general sense of dread about the short-term health of the economy (which has, nevertheless, largely remained strong).
Myriad issues can influence the cost and availability of disposable gloves. These factors were of course magnified during the pandemic, where unstable prices and abrupt twists and turns of availability drove buyers and sellers alike to take any steps necessary to acquire product.
Regardless of how the market has changed post-pandemic, one thing that remains the same is that most gloves are sourced from across the world, specifically SE Asia and China. This is where the variables begin to stack up, from manufacturing costs to ocean shipping to domestic transport.
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.
Most customer-facing employees working for any industrial distributor—no matter how knowledgeable they are—are likely not as successful at selling disposable gloves. That’s no knock on anybody, just the truth that accompanies an unusual product.
Why? Because gloves are a strange commodity: Practically every business uses them, but sales reps who truly understand the nuances of the product or the market are few and far between.
Being able to source disposable gloves when needed is essential for any distributor. If your customers have a need, you want to be able to fill it quickly and efficiently.
The ability to source gloves at scale—an unpredictable and expensive proposition—is priceless.
Lots of people and companies can claim to be reliable. What do reliability and consistency in relation to the industrial disposable glove market mean to you?
Here is what they mean to us:
