Trying to Make Sense Bursa Investments

Author: Ben Tan   |   Latest post: Thu, 6 May 2021, 4:47 PM


Premier: Glove Supply Constraints Persist 1 Year after the Start of the Pandemic

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A few days ago one of the biggest healthcare intelligence data providers - Premier Inc, published a report on the state of PPE supplies in the United States. You can read the full report here.

The report focuses on 3 main groups of personal protective equipment - masks, gowns, and gloves. While with masks things have improved significantly since the beginning of the pandemic, that is not the case with gowns and gloves, with constraints still being most significant vis-à-vis gloves.

I reported yesterday that between March 2020 and February 2021, the percent increase in value of glove exports from Malaysia was 226% (see here). This is confirmed by data of Premier according to which the increase in purchase order spend (i.e. increase in price paid per order) for exam gloves between March 2020 and March 2021 is 225% for US healthcare facilities.

In addition, Premier reported on the following increases in total money spent on gloves:

- An increase of 40% between March 2020 and June 2020;

- An increase of 130% between July 2020 and October 2020;

- An increase of 250% between November 2020 and February/March 2021.

Premier cite third-party data, saying that supply "challenges are expected to persist into 2023," and that "global demand for nitrile exam gloves currently exceeds existing production capacity by an estimated 215 billion units, or nearly 40 percent." According to a survey Premier have conducted, their members (4,100 US hospitals) say that availability of examination gloves is their 2nd greatest challenge in COVID-19 patients care, beaten only by personnel availability.

According to a chart Premier have shared, the average daily usage of gloves has increased over the course of the pandemic from approximately $800 worth of stock to about $1,100 worth of stock, or by approximately 35%. The percentage of overdue orders has remained stubbornly at close to 40%, even though the United States is by far the biggest consumer of medical gloves in the world with likely the greatest buyer power.

Malaysia is responsible for approximately 60% of the total value of US glove imports (see here).

Important disclaimer: Any views expressed are for informational and discussion purposes only. None of this information is intended as, and must not be understood as, a source of advice. It is imperative that you always do your own research and that you make any decisions based on your personal situation and your own personal understanding.

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  5 people like this.
Ben Tan Mjamal, thank you for your kind words. I sent the data sheet over to you. My suggestion is that you delete your email address from this public domain though, as that would invite a lot of spam to your inbox.
16/04/2021 3:06 PM
Brutus @Ben Tan, excellent piece of article! Happy to see your work whenever you post it up here!
16/04/2021 7:17 PM
DickyMe This data means nothing!

Constraints mean loss of opportunity cost.
Constraint is tied to time and deliverance and subject to demand,

This is a biased view of those with interest in gloves investment.

It fails to analyze uncontrollable parameters, for example, impact of pandemic reducing, customer rejecting orders or even god send immediate remedy. The future is unknown and contains a lot of surprises even to the optimist who depends on numbers which tells a story of the past which may not happen in future.

Damn that's a mouthful.
16/04/2021 7:36 PM
Michael Teng As usual Good job, Ben . A pat on your back .
16/04/2021 7:42 PM
Jack Khan DickyYou, you only know how to punt like 4d and toto. No need data one.
16/04/2021 8:22 PM
DickyMe Data is past event!

It may only provide pattern which the analyser wants to see.
16/04/2021 8:51 PM
katsul51 Once again a great insight and explanation with adequate proof and related reference. Thank you for your effort and consistent update.
16/04/2021 9:24 PM
17/04/2021 11:58 AM

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