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Exploitation of prices, fear of theft and financial risks: the mouthguard has become a niche product and a sought after asset. While companies are increasingly ordering under the pressure of time, they should establish production in Germany as quickly as possible.
“This is incredible,” says Alexander Röder, looking at the high shelf. It actually offers space for more than 43,000 pallets of medical protective clothing. However, most of the products currently handled under the supervision of the company’s deputy logistics manager Franz Mensch in Buchloe in the Ostallgäu region do not find their way there: mouth guards, respiratory masks and gowns are reloaded. in trucks on arrival, packed in discreet boxes. A spokeswoman says to prevent theft. Police patrol outside the entrance to the company’s facilities.
In mid-May, Franz Mensch wants to supply around 80 million mouthguards to hospitals, doctor’s offices, and authorities. In addition, four million masks called FFP and 2.5 million coveralls are to come. “This is a question of capacity,” says Röder. 250 orders per day had grown to 600, and the company had expanded to two 6-hour shifts. at 11.45 p.m. “Right now we are at the most difficult point,” says managing director Achim Theiler. “All inventory in Germany is almost depleted.”
Without sewing and with a few simple steps: how to make a mouth guard yourself. (Source: t-online.de)
In Germany there was a shortage of protective clothing.
Marc-Pierre Möll, managing director of the Federal Association for Medical Technology (BVMed), said companies in the protective clothing sector had increased their capabilities “to the limit.” However, there was also a lack of sufficient stocks in Germany. Therefore, medical protective clothing, like mouth protection, was a cheap niche product in Germany before the Corona crisis. Now the federal government “recommends” using it on public transportation and in stores.
Protective clothing and primary products are mainly produced in China, where Pandemic had its origin. However, in late January, deliveries from there were largely halted. At the same time, Chinese companies tried to buy products from Germany, says Franz-Mensch managing director Theiler. As soon as exports were possible again in March, his company ordered several hundred tons of goods.
Pallets with protective medical clothing: Franz Mensch GmbH plans to deliver around 80 million mouthguards to hospitals, doctor’s offices and authorities in mid-May. (Source: Karl-Josef Hildenbrand / dpa)
Large deliveries are often escorted by police for security
But prices exploded. “A face mask that used to cost three cents now costs 60 cents,” said Theiler. Talk of a twenty-fold increase in production costs, transportation has become 30 times more expensive, among other things, by switching from shipping to faster air cargo. Other companies like Dach Schutzbekleidung from Rastatt in Baden-Württemberg confirm these evaluations.
Even if the federal government and other customers are willing to pay huge sums given the current situation, high costs pose problems for providers. Because many producers asked for payment in advance. “Our partner has never done that in 20 years,” says Theiler. “Now we have bought products for 50 million euros.” Ming Gutsche, managing director of Dach, talks about an average number of seven figures.
To maintain liquidity and to be able to place large-scale orders, Franz Mensch is requesting a provisional loan from the LfA Förderbank Bayern. For security reasons, large deliveries are often escorted by the police. “Losing something to the federal government would not only be a disaster because of the risk to us,” says managing director Theiler. The demand is huge: “It will probably only improve from mid-May, when we can probably supply companies outside the health sector again.”
Production in Germany should cover basic needs.
While deliveries are getting bigger and more expensive, the federal government is moving ahead with increasing production in Germany in view of bottlenecks. After an initial tender, contracts were awarded to some 50 companies, Health Minister Jens Spahn (CDU) said in Berlin on Friday. This should produce ten million special FFP2 masks and 40 million surgical masks per week from mid-August. In this way, the basic requirements for health care can be largely met.
Until now, companies have rejected production in Germany due to significantly cheaper products from China. That is now changing: Franz Mensch has ordered three machines from a German company, the Dach company wants to build a production facility in Rastatt by May. Lohmann & Rauscher, based in Rengsdorf, Rhineland-Palatinate, said it was currently testing the production of surgical masks in Germany and in three neighboring countries, but was still awaiting final responses from governments. B. Braun, one of the largest German manufacturers of protective clothing, does not plan to manufacture in Germany.
In the long term, this is only possible with guaranteed delivery quantities at fair prices, according to industry association BVMed. “Because if China rebuilds its capabilities, it will always be cheaper than us,” says Theiler, managing director of Franz-Mensch. Framework contracts with the federal government will run until at least the end of 2021. However, roof manager Gutsche expects customers to continue to pay more for products manufactured here in Germany, “to ensure long-term security of supply” .
