The answer to this question cannot be answered directly. But there are “N” number of factors that have led to the current situation. And it is important to understand why the commoner is facing a crisis when he/she is about to buy N95 masks or any other mask. An N95 mask manufacturer faces a lot of crises while selling masks to the end-user. And there have been multiple incidents that cited that there is a steep shortage of masks in the US. And it is important to know the reasons. This post is all about it.
Factors that affect the price value of N95 masks
General factors:
1. The demand is very steep
2. Depending on exports is a risky concept because mask shipments are frequently banned, as is demand within the country. Export bans are bad for countries without manufacturing capacity, but they can also backfire when a country needs to import materials, more masks, or other vital commodities. Tariffs or export permits can slow down trade while also raising prices.
3. There is a crisis in the supply of inputs.
4. Matching the demand crisis and properly encompassing the entire value chain is quite tough.
COVID Related factors:
- Surgical masks are used to protect against germs but because of the raw materials used they are not so popular among people to buy those. However, the rate of permeability for an N95 mask is more, so it is a favourite among people. So, there is a strong difference between the production and demand of N95 masks.
- No matter how strong and good N95 masks are, these are disposable. Hence, both are disposable. When a person uses any mask twice, the external layer of the mask may become germ-infested after use. So when it is further used, the dampness of the mouth (saliva) gradually affects its filtering properties. So, a used mask is effective for only a few hours i.e. approx. 4 hours for surgical masks and at least a day for N95 masks, and if a person alters it or re-uses it, there’s always a danger of disastrous infection. For the best of our interests, it is ideal to use low-cost, disposable protective gear that can be securely discarded and replaced. Reusable masks have been demonstrated to increase contamination hazards.
- And post-lockdown, that’s now is the highest point where the usage of masks will be at its peak, as people will return to offices, there will be an increased demand of the masks.
Issues faced in the face mask value chain
- Short supply of Inputs: We are not talking about the metal strips, paper pulp, oil, or cotton that are used in the manufacturing process of masks. These are in abundance. The main focus is on non-woven fabric that is manufactured with polypropylene. PP electret melt-blown non-woven is a special fabric, produced by a small number of organizations globally as the initial investment required in heavy types of machinery, like melt spinning systems, extruders, and hoppers are quite high. So, currently, it has been more difficult to increase the supply during the crisis, so a good N95 face mask manufacturer is trying to find replacements for this input so that the production line can speed up.
- Local distribution is a miss: There has been a significant interruption in transportation and logistics, making the supply of masks to end-customers a difficult undertaking. Several nations have implemented export limits or equivalent measures (described further below), as well as new authorization or certification procedures, which might cause export delays. COVID-19, on the other hand, has wreaked havoc on domestic transportation and logistics infrastructure, as well as domestic distribution. Masks have occasionally been in short supply, not because of a shortage of commodities, but because they were not reaching health personnel, despite differences between countries, including the amount of preparedness of the health infrastructure. The most difficult part has been analyzing needs in real-time, prioritizing deliveries, and predicting changes at a time when the entire health system is under strain. Furthermore, a lack of masks in some nations has resulted in thefts and hijackings of some shipments.