Prices will stay where they are
Employers recognize the importance of providing the best safety equipment for their employees.
By Agatha Ciancarelli -- Purchasing, 4/8/1999 2:00:00 AM
Prices in health and safety supplies are holding steady, and manufacturers expect prices to remain stable for 1999.
Says Elizabeth Antry, director of marketing communications with Dalloz Safety, "I do not foresee any price increases because of consolidations. The fact that many manufacturers have been acquired is keeping prices competitive."
Bob Haggarty, marketing director for occupational health and environmental safety division with 3M, agrees, "Prices have virtually not changed."
Demand also remains stable. Says Haggarty: "Respiratory protection is a mature market. However, even though it is not a high growth area, employers recognize the importance of providing the best safety equipment for their employees."
Another stabilizing factor is the uncertainty caused by Asia. "After experiencing two years of solid growth," says Antry, "this year we expect slow growth due to the uncertainty concerning the financial crisis overseas and the number of consolidations and acquisitions."
Manufacturers agree that supplies and capacity levels are not concerns. Says Antry, "Supply is not a problem." Leadtimes also are in balance. "Leadtimes are running at four days with opportunity to decrease," Antry says. "At this time, with the variety of respiratory manufacturers consolidating, it is only the ones that service the best that will remain leaders."
Meeting new regulations
New regulations have affected health and safety products over personal protective equipment. Also, says Antry, "osha is in the process of requiring companies to have comprehensive safety and health programs, where they measure risk caused by exposure." While most large companies already have safety programs in place, smaller and mid-size companies will need to adhere to the ruling as well.
Another government agency, niosh (National Institute for Occupational Safety and Health), develops performance and testing criteria for industrial respirators. Recently, niosh passed a reclassification of filters, 42CFR 84, effective July 1998, mandating that manufacturers redesign and produce new filters and disposable respirators to meet new standards.
3M has introduced approximately 20 new respirators and filters because of the new regulation. The company developed a proprietary filter technology, Advance Electrostatic Media (AEM), which consists of an electrical charge that fits over the nose and mouth so that when a contaminate particle comes into the filter material it is electrically captured.
Expanding services
Suppliers also keep offering enhanced customer support and service. Example: Dalloz Safety runs a comprehensive technical department that offers customers product recommendations, assistance in selecting products, and assistance in understanding federal regulations.
Also, manufacturers have installed computer programs to improve service. "To help the end user interpret osha's 1910 134, which states that a user must know the life of a chemical cartridge they are using on their respirator," says Antry, "Dalloz developed the Willson cartridge life program. The program allows the end user to figure out when the cartridge service life ends."
Market at a glance
Demand: Stable. Slow growth is expected for the next year.
Supply: Manufacturers have experienced no problems with supplies and capacity and do not foresee the situation changing this year.
Prices: Virtually unchanged.
Leadtimes: Standard. Running up to four days with opportunity to decrease.
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