4th Annual Gloves Buyers Guide: the wave felt around the world

Healthcare Purchasing News, March, 2005

Although some of the leading glove manufacturers' plants suffered minimal-to-no damage from the tsunami that swept through Southeast Asia in late December, there's no word on whether production or even pricing will feel any aftershocks. Companies such as Ansell Healthcare, Kimberly-Clark, Sempermed and Cardinal Health all emphasized to Healthcare Purchasing News that the product pipeline remains fluid and the supply chain unaffected by the earthquake and subsequent tsunami that claimed the lives of nearly 160,000 people so far. According to an Associated Press report from February 9, the number still missing could be as high as 142,000 throughout Indonesia, Sri Lanka, India, Thailand, Somalia, Maldives, Malaysia, Myanmar, Tanzania, Bangladesh, Kenya, Seychelles.

Ansell Healthcare reported that while none of its surgical and examination glove manufacturing facilities in Sri Lanka, Malaysia, India and Thailand suffered any damage, some of its 8,500 employees in the region had family members that were still unaccounted for, said Ansell's Robert Bachkosky.

Sempermed reported that both its Siam Sempermed factory in south central Thailand (located inland) and the Sempermed port (located on the opposite coast from the devastation) were unaffected and there has been no interruption in flow of goods, said Sempermed's Paul Girouard.

None of Kimberly-Clark's four facilities in Southern Thailand were damaged and all of its 8,000 employees in the region were accounted for.

Cardinal Health has also reported no damage or casualties for its plants in Malaysia and Thailand.

Dr. Esah Yip, of the Malaysian Rubber Export Promotion Council confirmed that affected areas in Malaysia were mostly the Penang Island and certain areas of the northern coast. She explained that the majority of the rubber trees and glove manufacturing plants are located further inland, and therefore also avoided major damage.

Though for the most part unscathed, these companies were nevertheless shocked and unsettled by the tragedy that struck so close to their home across the sea. As a result, generous contributions have been forthcoming.

"In response to the tsunami disaster, Ansell has made donations of medical and industrial gloves through its operations in Sri Lanka, Thailand and Malaysia and as the relief effort continues the company will be making further product contributions," said Bachkoskv. "Ansell is also making significant donations to an internal Tsunami Relief fund which will be used for select humanitarian relief in the region."

Kimberly-Clark contributed $500,000 to the United Nations Children's Fund (UNICEF), matching employee contributions dollar for dollar up to an additional $500,000. Kimberly-Clark's employees in the region actively responded by participating in blood drives and providing local disaster relief assistance. In addition, Kimberly-Clark Personal Care and Health Care products were shipped to the area.

As of February 7, the American Red Cross reported that a total of $297.4 million had been pledged to the Red Cross for Tsunami relief efforts. In addition, 95,000 hygiene kits, 14,900 kitchen sets and 17,500 tents have been purchased by the American Red Cross for distribution in the affected region.

While manufacturers work to calm fears of trouble in the glove supply chain, it's possible that pricing could be affected by demand fears and not necessarily reality. Tsunami notwithstanding, it's a fact that latex prices have experienced an increase and it waits to be seen whether the Asia catastrophe will have an added effect.

"Those who purchase the supplies that both medical professionals and patients depend upon may give little thought to where the products they buy originate," said John Amat, vice president, global marketing and business development, Kimberly-Clark. "However, in the latex glove industry, where the materials come from is precisely what has caused glove prices to increase.

"Over the past few years, virtually every aspect of exam glove manufacturing from the production of raw natural rubber latex to delivery has increased significantly," he continued. "Kimberly-Clark will not sacrifice on quality to produce a lower cost natural rubber latex glove, so a modest price increase over time is inevitable to recoup some of these rising costs. We have educational and utilization programs available to help our customers optimize their purchases of medical gloves to ensure their facility's clinical needs are met efficiently."

Amat explains that 50 percent of the cost of a latex glove comes from the creation of latex itself. According to the Malaysian Rubber Board, the price of latex has almost doubled since December 2002 due to inclement weather preventing the harvest of rubber, increased demand from China and low stockpile. Costs are predicted to continue to rise following the establishment of the International Rubber Co Ltd, a partnership among Thailand, Indonesia and Malaysia, who together are responsible for 70 percent of the world's natural rubber, he said.