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Reshoring Demand for PPE Raw Materials and Products Disrupts Supply Chains Post-COVID-19
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The COVID-19 pandemic has permanently changed several aspects of global manufacturing and supply chain ecosystems. One of the most notable changes is in the personal protective equipment (PPE) supply chain. The pandemic revealed an over-dependence on selected Asia-Pacific countries, such as China and Malaysia, for PPE raw materials and products. This led to severe shortages in the pandemic’s initial phases, forcing some medical professionals to use polyvinyl chloride (PVC) and rubber gloves instead of nitrile butadiene rubber (NBR) gloves. This study analyzes the COVID-19 impact on the global PPE supply chain, focusing on healthcare PPE. Other segments covered include industrial and consumer PPE. Frost & Sullivan examines the workings of the PPE value chain before and during the pandemic and highlights weaknesses amplified by the global healthcare emergency. We also studied the impact on various value chain participants such as raw material producers, PPE contract manufacturers, top PPE brands, and distributors.The pandemic led governments worldwide to realize the need to localize essential goods manufacturing to better prepare for future disruptions. In response, they have launched initiatives to secure PPE supply chains, including encouraging reshoring by offering grants to PPE manufacturers. Other trends affecting the PPE supply chain are:• Strategic national stockpiles• Demographic changes in the working population• New business models• Manufacturers’ focus on comfort• Resource scarcity• Digital supply chain and manufacturingThrough this research service, Frost & Sullivan provides industry stakeholders insights into growth opportunities created due to the COVID-19 pandemic.
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