We Could Be Headed for a Face Mask Glut
Covid-19 masks are in such great supply, it’s pressuring profitability at companies such as Fastenal. That’s not the worst thing in the world.
Once in short supply, face masks are becoming an everyday commodity. And they’re priced like it, too.
Photographer: Christinne Muschi/BloombergJust a few short months ago, face masks were so hard to come by that companies were sending employees to safeguard shipments from government seizure or mysterious bandits. Now, the world is so awash in face coverings and shields that some of distributors are having a hard time getting full price.
Fastenal Co., a supplier of industrial odds and ends for the factory floor, on Tuesday cited an improved supply of certain Covid-19 specific safety products — including masks and face shields — as the biggest reason its gross-profit margins were slimmer than expected in the third quarter. Average daily sales of safety products increased 34.4% in the period relative to a year earlier. While that was a sharp deceleration from the triple-digit increase in the prior quarter when the coronavirus was just taking hold and disruptions were at a peak, it’s strong enough to serve as a reminder that the pandemic hasn’t gone away and neither has the need for personal protective equipment. But many companies are stepping in to fill that void.