American Performance Polymers heads to foreclosure
Colebrook, NH – American Performance Polymers recently faced foreclosure after struggling to compete with cheaper imports of personal protective equipment (PPE) from Asia. Despite receiving $35 million in federal aid to expand production of medical gloves, the company laid off most of its 180 employees in late 2022. The company’s CEO, Rich Renehan, cited the inability to compete with lower-priced imports as a significant factor in the company’s financial difficulties.
The federal aid was intended to help American Performance Polymers ramp up production to meet the increased demand for PPE during the COVID-19 pandemic. However, the company faced challenges due to the high cost of domestic production compared to overseas manufacturers. A box of 100 gloves imported from Asia could sell for as low as $2, while the same box made in the U.S. cost between $8 and $10. This price disparity made it difficult for the company to secure long-term contracts and sustain its operations.
In response to these challenges, the company initially furloughed nearly 170 employees in June 2022, hoping for additional funding or protections that would support domestic manufacturers. When these measures did not materialize, the company was forced to terminate the workers to ensure they could access more comprehensive benefits. State and federal agencies quickly stepped in to assist the displaced workers with finding new jobs, training, and other support services.
The foreclosure of American Performance Polymers highlights the broader issue of the U.S. PPE industry’s reliance on imports and the need for long-term federal support to sustain domestic production. Stakeholders have suggested that long-term contracts or restructuring programs like Medicare to incentivize the purchase of domestically made PPE could help create a sustainable demand base for American manufacturers. Without such measures, companies like American Performance Polymers may continue to struggle in the face of global competition.