The right glove for the right job at the right price: keeping gloves on hand

Healthcare Purchasing News, Feb, 2009 by Jeannie Akridge

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Hospitals may be breathing a small, albeit possibly temporary, sigh of relief as cost increases for medical gloves seem to have slowed.

"After a very volatile year in 2008, the market has already begun to stabilize," commented Poyee Tai, executive vice president, Tronex Industries. "In October 2008, declines in raw materials and freight costs should contribute to a decrease in the cost of gloves by the end of the 1st quarter in 2009."

"The biggest variable impacting exam glove pricing is the decline in cost of the raw materials used to manufacture gloves," remarked Judson Boothe, marketing director of medical supplies, Kimberly-Clark Health Care. "The decrease in cost of raw materials has varied by glove material type, with the largest decreases seen in vinyl and latex gloves."

Tugging prices upward, however, said Tai, "medical glove production will feel the effects of stricter FDA standards that took effect December 19, 2008. The new FDA ruling tightens the acceptable quality levels (AQL) from the previous 2.5 for surgical grade gloves and 4.0 for examination grade gloves to 1.5 and 2.5 respectively. This measure harmonizes AQL's for pinholes and defects with consensus standards developed by International Organization for Standardization (ISO) and ASTM International. The tightening of FDA standards has made manufacturers implement more stringent quality control and has increased manufacture costs and decreased the supply of disposable gloves. Prior to the FDA changing their standards, Tronex's full line of exam gloves had already met the AQL level of 1.5," Tai noted.

"Glove manufacturers and distributors risk their products not being admitted into the U.S. marketplace or not considered appropriate for healthcare use if their gloves cannot meet these higher quality levels now required by the FDA," said Boothe. "Kimberly-Clark gloves are currently at AQL levels far exceeding industry norms. Our exam gloves are produced at a higher standard than specified by FDA."

Also affecting glove supplies and pricing, in July 2008, Hong Ray, the world's largest manufacturer of vinyl exam gloves, declared force majeure conditions saying it was unable to meet its normal customer agreements. Among the many factors cited as leading to production shortfalls, shipping delays and price increases, were a fire at a major raw material manufacturer; changes in Chinese government policy impacting labor, taxes and credit; the Beijing Olympics; the price of petrol; the weak U.S. dollar; energy inflation; paper cost increases; and the FDA AQL change from 4.0 to 2.5.

Several major glove manufacturers assured buyers of the stability of their glove supply levels. For example, noted Boothe, "by maintaining direct control over manufacturing for more than 95 percent of our exam gloves through the two Kimberly-Clark-owned facilities in Thailand, we have been able to increase and sustain production with very little interruption. In October 2007 we expanded our manufacturing capacity of the STERLING Nitrile exam glove to help meet rising global demand. These investments allowed Kimberly-Clark Nitrile exam glove customers to see no disruption in their nitrile exam glove supply during the market disruptions that occurred in the summer of 2008 from glove companies that sourced their nitrile exam gloves from external suppliers."

"Tronex is an Asian American owned company with a product category that is made in Asia. The cultural background, extensive knowledge and experience in international ] logistics and strong factory partnerships have allowed for total control, and for Tronex to keep increases to a minimum, we continue to look for operation efficiency," said Tai. "Our Company prides itself with an order fulfillment rate in excess of 99 percent. Tronex has a proven inventory planning system (2 1/2 months of a buffer stock) that ensures consistent supply. When many suppliers were having trouble meeting demand, Tronex has been able to maintain a fulfillment rate of 99 percent for existing customers, while expending our business with good control. All Tronex factory partners have been with us for more than a decade. We ensure that we understand our customers' expectations and plan carefully with proper execution."

And according to Dr. Esah Yip, director of the Malaysian Rubber Export Promotion Council, "There is no shortage in supply levels with regards to natural rubber latex gloves. As a matter of fact, the glove industry in Malaysia, the largest exporter of rubber gloves in the world, has been growing strongly in recent years. Malaysia accounts for about 60 percent of the world demand of rubber gloves."

She added, "natural rubber latex gloves are known for their superior barrier properties and cost effectiveness. As such, they have been and still are widely used particularly in healthcare settings where effective barrier protection is of great importance against viral transmission and infectious diseases. With the exception of vinyl or PVC gloves, which have been shown to provide lesser barrier protection than natural rubber latex gloves, natural rubber latex gloves are generally less expensive than many synthetic alternatives, such as polyisoprene, polychloroprene, polyurethane, co-polymer and often nitrile."