Glove One announcement part of larger effort to bring critical manufacturing back to America - UPSTATE BUSINESS JOURNAL

2022-06-25 10:54:39 By : Mr. David Yu

The June 6 announcement by Health Supply US to build a $150 million medical supply manufacturing and distribution facility in Greenville County is part of a larger effort to bring critical manufacturing capacity back to American shores.

The decision to “reshore” key manufacturing to the U.S. stems from lessons learned throughout the pandemic — particularly in supply chain vulnerabilities — and a clear-eyed assessment of global geopolitical realities, according to Health Supply US CEO Chris Garcia.

“The decision to reshore manufacturing really lies in our understanding of the growing geopolitical conflicts that are causing supply chain disruptions,” Garcia said.

At the outset of the COVID crisis in 2020, the one item most needed to combat the virus’ spread, namely disposable medical gloves, was in “short supply or no supply,” he said.

Health Supply US was founded the same year, in part to solve that supply conundrum. The company rapidly grew to include nine facilities in five states and is focused on the strategic mission of building domestic manufacturing capacity for personal protective equipment (PPE) on American shores.

To explain the significance of the new Greenville operation, Garcia cited a couple of data points that the pandemic brought into sharp focus:

For Garcia and his company, having domestic production capacity in key sectors is a matter of national security.

“It doesn’t matter how cheap you can buy it overseas if you can’t get it overseas,” he said.

U.S. Sen. Lindsay Graham addressed this vulnerability in prepared video remarks during the Greenville Area Development Corporation’s annual meeting, where the Glove One LLC announcement was made.

“This is a big deal for the area and the state,” Graham said. “We no longer have to rely on China.”

Garcia said he hopes his company’s decision to invest in domestic manufacturing capacity serves as a model to other companies considering their options amid an increasingly uncertain international supply chain environment.

“We hope that we can be a shining light for others that you don’t have to be a Fortune 500 company,” Garcia said. “ We hope that this is a signal… that businesses of all sizes can choose to set up operations domestically if they have a sound strategy.”

Garcia said he’s already hearing talk within the medical supply industry of bringing production of nitrile butadiene rubber (NBD) — the synthetic rubber that is the principal raw material in nitrile gloves — back to the U.S. Such a move would further mitigate the risks of future supply chain disruptions, he said.

Health Supply US’s decision to locate in South Carolina is also part of a broader trend for life sciences companies to set up shop here. 

Since 2017, the life sciences sector has become the fastest growing industry in the Palmetto State, according to figures released by GADC at its annual meeting. More than 1,000 such firms are now located in 42 of the state’s 46 counties and employ about 87,000 workers.

The robust presence of manufacturing companies in Greenville County and the state highlight one of the main reasons his company chose the area for its new facility: the fertile ground for business.

“What Greenville offered us in terms of unique features was the pro-business and business-friendly environment,” he said. 

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