Ansell Healthcare manufactures Micro-Touch NitraFree nitrile examination gloves, which are made without sulfur-based chemical accelerators. The gloves have grown to be extremely popular, and a number of institutions use them hospital-wide, says Taylor. These gloves also manage to benefit more than just the people wearing them or the people being treated. A portion of the proceeds from the sale of the gloves is donated to Susan G. Komen for the Cure in support of breast cancer research. Ansell Healthcare has donated nearly $45,000 to date.

Challenges and Opportunities


It will take some time for hospitals to completely recover from the wounds of the economic crisis. With the volatility of the raw materials market in the mix, manufacturers have a lot on their hands as well.

"You don't want to cut quality, but you want to try and provide a cost effective solution," says Taylor.

One way that Ansell Healthcare is solving the problem is by packing 200 exam gloves per box, rather than the typical 100. This helps reduce transportation and warehouse costs, which helps to offset increases due to raw materials or energy. It also cuts down on the number of boxes and lessens wastage for the user, says Taylor.

"Another challenge we face is trying to innovate all the time and bring on board better gloves with new features," says Venkat. "In the commodity industry, there's always pressure to differentiate or die."

Despite the challenges, manufacturers predict that the disposables market will continue to grow. More than 60 percent of Covidien's medical supplies business comes from hospitals, but sales to other medical facilities are increasing as well.

"We are seeing a growing trend of people receiving care in non-hospital settings, like home care and surgicenters, where the cost may be less," says Clemmer. "We have seen an increase in sales from outside of hospitals over the last few years and we expect this trend to continue."

Other manufacturers are looking to tap into disposables markets beyond America's borders. TMI already works with medical product distributors in several countries, including Germany, Italy, Philippines, Mexico, Malaysia, Peru and Guatemala. The company continues to grow year after year, with a significant portion of its growth stemming from international markets, says Grad.

The United States, Europe and Japan account for the majority of the disposables market today, says Smith. "However, the emerging middle class in China, Brazil, Russia and India make these markets significant opportunities for disposable medical product makers," he adds.

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