Not an easy ride

GLOVE stocks had a nice pop yesterday on continued bad news on how Covid-19 cases are surging worldwide again.

Such stocks may act as a barometer of bad news given their share price performance may be intrinsically linked to how Covid-19 cases are on a global level.

One thing that is not bad news is the financial performance of the glove stocks. Many are making historic high profit, driven by cascading rises in demand and prices.

Prices will not hold as even the large glove makers are projecting slippage in prices.

The high profit has attracted many companies into the glove making business and is the business a till for companies to ring in the cash?

It is not so easy, and speaking with those in the industry, they will say that there is no blueprint on how to successfully run a glove making business.

There are production lines but the secret is in the process, they say.

The other is that the business is a volume game that has just recently seen a windfall of historical proportions.

The other is the environmental, social and governance issues the glove makers have to adhere to.

That is being not only demanded by western countries but also the major customers of those glove companies in those countries.

Prior to the current boom, glove makers had to negotiate a price increase to pay for such ESG concerns.

While it may seem like rocket science for those who are excelling in the business and indicate that there are intangible barriers of entry, the entire episode of the spotlight being shined on the labour practices of the industry is that now they are able to pay and rectify those worries.

Maybe after all of what the industry has gone through, the hope is that they can maybe even set the standard on how to treat foreign labour in this country by funding the proper practices required in the current global climate of social justice.

Maybe, the industry might just set the standard on what to do. Maybe.