Monday, May 23, 2011

Leather & Nitrile Also Rising

Last week I blogged about cotton and latex, two key commodities used in Personal Protective Equipment (PPE) manufacturing. Leather and nitrile are two more commodities on which the safety industry relies, and the pricing of each is also on the rise. The short explanation for rising leather prices is a shortage of raw materials (hides). More specifically:
  • Cattle populations in South America are down due to a drop in demand for the past two years during which farmers found it more profitable to raise crops versus cattle
  • Although cattle herd production picked up when demand did late last year, current populations cannot support today's demand, and it will likely be two to three years until the market catches up
As far as nitrile is concerned, I addressed this raw material back in my April 12 blog and what I foretold is coming to pass. Nitrile is in short supply, and therefore many of our thin-walled safety glove manufacturers have announced price increases. As always, the Arbill Operations team is monitoring the commodities markets and is committed to sourcing high-quality products at the best value, as well as ensuring that our customers do not experience any supply interruptions.

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