“Manufacturers of protective equipment are remembered only in extreme situations”

The President of the Association of Developers, Manufacturers and Suppliers of Personal Protective Equipment (PPE) spoke about the growth in loading and the problems of manufacturers of protective products. Vladimir Kotov.

— At the beginning of the COVID-19 pandemic in Russia, there was an acute shortage of masks and gloves and rising prices. A similar situation is now observed with equipment and other goods after the outbreak of hostilities and especially mobilization. How are these situations similar and how are they different?

– At the beginning of 2020, demand for light respiratory protection, gloves and antiseptics grew sharply, now – for special clothes, shoes, sleeping bags, medical supplies and, to a lesser extent, tactical glasses. In both cases, the sharp increase in demand occurred suddenly, but it is precisely for such a case that stocks and technologies for distributing the corresponding funds should be created.

During the peak of COVID-19, demand grew primarily for simple respiratory protection. Manufacturers that are members of the PPE Association already had technologies that, with the support of the Ministry of Industry and Trade and the Industrial Development Fund, increased the production of high-quality products with proven protective properties tenfold in the shortest possible time. This fully satisfied the demand.

Manufacturers of protective clothing depend on imports. For the production of fabrics, foreign raw materials and materials are used – imported accessories, threads, needles, equipment. All this must be delivered promptly, which is not so easy in the current geopolitical situation. Russian sewing capacities were already busy before, especially after COVID-19.

Of course, we will manage to secure priority orders for the needs of the state, but there are risks of delays in deliveries for the industrial sector. There is an opportunity to replace the volume by increasing imports from China, Turkey, and Uzbekistan.

— What is the role of the state order for manufacturers of protective clothing and footwear?

– Some of the manufacturers of safety shoes prefer to work only with government orders, someone does not want to depend on the nuances of the public sector and diversifies their work. Manufacturers of special clothing, as a rule, work simultaneously for both the state order and the industrial market. The requirements for PPE are quite high and regulated, and there are manufacturers who work for individuals by simplifying products, reducing the protective properties.

– Do you expect support from the state and in what way?

– Our PPE manufacturers are small and medium-sized businesses that do not have serious financial resources, but provide vital products to all industries: metallurgists, power engineers, firefighters, doctors, law enforcement officers, military, etc. Unfortunately, PPE manufacturers are remembered only in extreme situations. But in order to establish systematic work, the industry needs its own state program, aimed primarily at achieving independence from imports. So that at critical moments you do not have to send planes to China for disposable products of dubious quality.

Now, in order to supply PPE to a large company, the manufacturer needs to win a tender, make financial support, then find money to purchase raw materials, produce products and deliver, and then wait for the money for the delivered goods. It is extremely difficult to invest in the development of enterprises in such conditions, and it is simply impossible for small businesses.

In addition, the current crisis is not legally classified as a force majeure, which is why many PPE suppliers are required to fulfill previously concluded contracts on the old terms, although economic realities, including production costs and the like, have changed a lot.

– Manufacturers of PPE and equipment will increase capacity due to partial mobilization?

— Any development is possible only in conditions of predictable risks and understanding of prospects. At the peak of the pandemic, many enterprises worked around the clock to increase production, and when demand began to decline, they were actually left alone with unsold products and were forced to mothball production. Stoppages of enterprises were avoided primarily due to the departure of a number of foreign manufacturers of respiratory protective equipment, which freed up niches in the market.

Now we are seeing a rush for some types of PPE, while in general the range is very wide. How long the current high demand will last is hard to say. Fundamentally, it depends on the size of the population facing dangerous and harmful conditions, but we cannot yet expect demographic growth and an increase in the number of jobs in our country. On the other hand, it is worth counting, if not on an increase in the number of products, then on an increase in the quality of PPE. In addition, it is necessary to use the potential for import substitution of products and raw materials.

There is also the problem of staff shortages. In the production of PPE as a whole today, professions that do not promise serious earnings are not the most prestigious and sought-after professions.

This is largely due to the nature of the production. For special safety shoes, there are increased requirements in terms of materials, which makes the cost price quite high, and the price at which such shoes can be sold is limited. It is more profitable to import synthetic sneakers or shoes from China.

Interviewed by Anatoly Kostyrev