The AOP Key Price Drivers is a new content offering created in partnership with ProcurementIQ that looks at the direction of the primary price drivers of a product or service and how they combine to influence buying decisions.
Today we are reviewing protective gloves.
The gloves covered by this data are commonly worn by workers in the food service, manufacturing, mining, construction and energy sectors. Examples include leather gloves, chemical-resistant gloves, coated gloves, or electrical gloves.
The key pricing drivers were all moving in a direction not favorable to buyer negotiating power, and the situation has been further complicated by the military activity in Ukraine. According to the most recent Procurement IQ update, three of the input material types – oil, gas, and plastics – for these gloves are being driven up because of the loss of exports from Ukraine. With input materials representing over 46% of the price of these gloves, those increases will be felt keenly in the short term.
How to Use this Information
There are not many acceptable substitutes for these specialized gloves, and so procurement should either delay new contract negotiations or sign an agreement for the shortest time possible. Fortunately, the supply chain and suppliers themselves are relatively stable, so procurement may be able to leverage partnerships and collaborative supply relationships to mitigate the increases.
We have partnered with ProcurementIQ to dig into their treasure trove of over 1,000 indirect category intelligence reports, with new insights every Friday. To dig deeper into the protective gloves category, click here.