Due to the high infectivity of the omikron variant strain, the number of confirmed COVID-19 cases in China has been soaring since March. It had eased in all cities except Shanghai by end of March. However, after the Chinese Memorial Day, there were new cases due to the movement of people.
Which cause demand for protective coverall and isolation gowns has greatly increased, and resulting in a sharp rise in raw material and labor costs. By April, labor costs had risen by more than 50%, and raw material costs had risen by 100%. The current domestic price of protective coverall and isolation gowns has almost exceeded the level during the 2020 epidemic.
This situation has led to increased pressure on our foreign trade orders. First of all, due to rising labor costs, the cost of many foreign trade orders which received in advance has even higher than orders’ price. Secondly, because the price of domestic orders is higher, and the styles of protective coverall and isolation gowns are unified, means workers do not need to adjust the sewing method during production, and they are more and more skilled and faster after produced large quantity. However, the foreign trade orders’ price is much lower than current domestic orders, and each order the style, material and product are different. Which means the workers will earn less if produce foreign trade orders, which leads an unbalanced psychology of the workers.
To guarantee delivery of all orders and normal production of foreign trade orders, currently we are doing our best to adjust production methods and balance the income levels of workers. For example, workers are asked to produce domestic protective coverall/ isolation gown orders and foreign handmade product orders in different time periods, they need to ensure the minimum number of completions every day.
We will keep customers informed once the epidemic situation calms down and PPE price back to normal. Hope it’ll not take too long time.
