In a matter of weeks, the N95 dust mask has emerged from relative obscurity to the center of global attention as the coronavirus COVID-19 spreads. In late January, U.S. prices spiked by a factor of 5 or more and store shelves, both physical and virtual, were suddenly laid bare. This, despite statements by the Centers for Disease Control and Prevention in Atlanta that it “does not currently recommend” general public use of N95 masks.
It turns out Beijing had mobilized its global public to action several weeks ahead of public awareness in the United States. Chinese language chat groups based in the PRC circulated appeals for readers outside China to buy masks locally and send them back to the PRC. Individuals, and likely some speculators, quietly made mass purchases, buying the U.S. retail stocks clean.
This placed the U.S. healthcare sector—and consumers and businesses in general—in a “catch-22” for the near term. The United States had an N95 shortage before it knew the COVID-19 was here, and now faced difficulty mitigating the scarcity even as it began to face the threat. Ninety percent of the U.S. N95 mask supply—and at least 50 percent of the global supply—came from the PRC before the outbreak. With the COVID-19 challenging the PRC, Beijing was now likely to prioritize further N95 production for its domestic needs.
In the current age of globalized trade, the N95 mask shortage is a supply chain wake-up call. “Just-in-time” supply is efficient, but government and commercial sectors alike will need to reassess their sourcing and/or stockpiling of products and inputs that are, or could become, strategic—whether for civilian or national security emergencies.
At Pointe Bello, our thoughts are with those at home and around the world whose health and livelihood are being adversely affected. At the same time, we’re pondering ways public and private sector can work together better to anticipate supply chain risks, especially when public welfare and national security are at stake, and balance the opportunities of global trade with the challenges of instability in key supplier markets like China. We’re here to help.