Report: Ansell's Distributors Won't Pay More for U.S.-Made PPE - Modern Distribution Management

Report: Ansell’s Distributors Won’t Pay More for U.S.-Made PPE

Ansell's CEO said the PPE maker is "unlikely" to invest in U.S. manufacturing as its distributors say the cost premium is too high.
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PPE manufacturer Ansell’s CEO said the company will continue to make its products in Asia after its distributors have declined to pay a premium for U.S.-made products.

Like most PPE makers, Ansell makes the majority of its gloves and other products in Asia, particularly Malaysia, Sri Lanka, Thailand, Vietnam and China — all countries subject to the Trump-imposed tariffs on goods imported to the U.S.

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“The Australia-listed company looked at how much it would need to charge to support U.S. manufacturing,” wrote the Wall Street Journal in an Aug. 25 report. “Then it asked its distributor clients whether they would pay. The response was unanimous … ‘The answer was pretty firmly: No. … The cost premium is too high.’”

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Ansell’s Managing Director and CEO Neil Salmon told the WSJ that the company is “unlikely to invest in increased U.S. manufacturing unless the government mandates the use of domestically produced goods.”

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The PPE manufacturer also said it would recover about $80 million in annualized tariff costs through a 7% price increase.

“We’re getting a lot of kudos for just the clarity,” Salmon told the WSJ. “That in itself is an advantage in what’s overall a pretty confusing picture.”

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