On February 15, a machine produced masks at a medical equipment factory in the United States. When a shortage of N95 masks caused hospitals to get into trouble in 2020, American manufacturers stepped in. Now, some of these companies are working hard to sell their masks. Chandan Khanna/AFP via Getty Images hide the title bar

On February 15, a machine produced masks at a medical equipment factory in the United States. When a shortage of N95 masks caused hospitals to get into trouble in 2020, American manufacturers stepped in. Now, some of these companies are working hard to sell their masks.

One year after several American companies emerged and produced much-needed masks and N95 respirators in the United States, many of them are now on the verge of financial collapse, shutting down production and laying off employees.

The nationwide vaccination campaign, coupled with the influx of cheap Chinese-made masks and N95 respirators, has greatly reduced the sales of these companies and lowered their prices.

Although some call this a normal consequence of the free market, some business owners say they feel abandoned by governments that rely on them to save American lives during the COVID-19 pandemic.

"This is not only about national security, but also about national pride," some of them wrote in a letter to President Biden last month, asking the government for help.

Last year, dozens of companies such as Armbrust American responded to a call from the United States to produce more personal protective equipment (PPE) domestically.

Without government assistance, Armbrust used its own resources to purchase a factory near Austin, Texas, purchased machines, employed more than 100 workers, applied for complex and lengthy certification, and started manufacturing.

“We started with the pandemic in April, very, very fast. In about six months, we were able to scale up and produce about 1 million masks per day. Today, we produce surgical masks and N95 masks at the same time,” the founder and CEO Lloyd Armbrust (Lloyd Armbrust) said.

Business has been very good until large-scale vaccination efforts have greatly reduced the demand for masks. Now, Armbrewster predicts that he can hold on for up to four months before shutting down the factory completely. He said: "We have only one key staff member on shifts, and almost only one complete staff member on the main shift."

Earlier this year, Armbrust and 27 other small business mask manufacturers formed the American Mask Manufacturers Association (AMMA).

"Let me put this in perspective: we have 28 members that will go bankrupt in the next 60 to 90 days, and when they go bankrupt, we will not turn off the lights and seal up these machines. We send them to the dump. The kind we created The power is gone," Armbrewster said. He said that five AMMA members have stopped production.

These companies that have recently entered the mask manufacturing industry are not the only ones to cut production, lay off workers and compete for market share dominated by foreign-made products for a long time.

On May 5, 2020, a worker at the Honeywell plant in Phoenix is ​​handling an N95 respirator. Brendan Smialowski/AFP via Getty Images hide caption

On May 5, 2020, a worker at the Honeywell plant in Phoenix is ​​handling an N95 respirator.

Anne Miller, executive director of the non-profit organization ProjectN95, said that about 10 American companies were actively producing N95 respirators before the pandemic began. ProjectN95 is a national personal protective equipment information exchange established in 2020. Larger companies such as Honeywell and 3M also produce N95 in factories abroad. According to industry experts, in general, less than 10% of N95 respirators used in the United States are produced domestically.

At the beginning of 2020, China, as the world's largest producer of masks, is also fighting the epidemic and nationalizing its manufacturing. The US market, which relies mainly on Chinese masks, has basically been cut off.

Robert Handfield, a professor of supply chain management at North Carolina State University, said: “China realizes that it is facing a crisis and restricts the export of all masks to the United States.” Therefore, he said that although these companies are still producing, the Chinese government prohibits them. Ship masks to the United States.

To make matters worse, even US companies that mainly produce abroad, such as Honeywell and 3M, face restrictions. "3M cannot ship goods from its factories in China back to the United States because the Chinese government prevents exports from leaving the United States," Handfield said. The inability to obtain masks from abroad has caused domestic shortages and put the United States in a dangerous situation.

Mike Bowen, executive vice president of Prestige Ameritech, one of the oldest domestic mask manufacturers in the United States, recalled that dependence on China and other foreign countries is nothing new.

In 2009, during the H1N1 pandemic, Prestige Ameritech stepped up production to meet the growing domestic demand.

Before the pandemic, large companies such as Honeywell and 3M produced N95 respirators in factories abroad. According to industry experts, in general, less than 10% of N95 respirators used in the United States are produced domestically. Justin Sullivan/Getty Images hide caption

Before the pandemic, large companies such as Honeywell and 3M produced N95 respirators in factories abroad. According to industry experts, in general, less than 10% of N95 respirators used in the United States are produced domestically.

"Last time we were stupid," Bowen said. "When they say they will stay, we trust everyone.... We are buying a factory, we are building more machines, we are hiring people, but you have to be with us. Everyone Said they would, but they did not."

As soon as the health panic ended, the market dried up. The consequences were serious-laid-off workers, economic losses-but he survived.

This time, the blog post tried to be more careful.

"It's like people want cakes and they want to eat. They want the cheapest prices — they want Chinese prices — but they want American manufacturers to help them when they can’t get Chinese products. That’s not.” Doesn't work," Bowen said. By comparison, the cost of manufacturing an N95 respirator in China is about 25 cents. The cost of producing the same product in the United States may double.

When the COVID-19 pandemic started, Bowen's company received a slam for new orders. His factory mainly uses domestically sourced raw materials, so he strengthened his work again. He increased production to meet growing demand, added more machines and more than tripled the labor force.

Now, as China lifts its export ban and directly competes with masks made in the United States, much cheaper masks from abroad are entering the market again. Bowen has six machines idle in his factory.

"They want the cheapest price — they want Chinese prices — but they want American manufacturers to rescue them when they can't get Chinese products. This won't work," Mike Bowen, executive vice president of Prestige Ameritech, told NPR. Tom Pennington/Getty Images hide caption

"They want the cheapest price — they want Chinese prices — but they want American manufacturers to rescue them when they can't get Chinese products. This won't work," Mike Bowen, executive vice president of Prestige Ameritech, told NPR.

Susanne Gerson is the Executive Vice President of Louis M. Gerson Co. in Middleboro, Massachusetts. Just like Bowen, Gerson has been in the industry for many years. "We have been in business for about 60 years and we have been producing N95 respirators since around 1985. So we are a very experienced respirator manufacturer," she said.

When the pandemic began, Gerson said she began to receive calls from Massachusetts doctors in person.

"Actually, when I talked to them on the phone and they didn't know what to do, I made people cry-the pregnant female doctor and didn't get any protection," she said.

The company decided to reconfigure its business, from manufacturing masks for industrial workers to manufacturing masks for medical staff, doubling the workforce in the workshop and renovating facilities.

"I think people outside the manufacturing industry don't understand what is needed to produce a product. We are the most critical part of the whole process, but we are the most neglected part," she said.

She added: “We don’t have to lay off staff, but if things are not cleaned up in the pipeline and we don’t resolve some of the confusion, we don’t know what will happen.”

Like Bowen and others, Gerson called on the Biden government to stop the influx of Chinese products.

"Based on what we believe to be the promise of new customers and people saying'no, we will need products', and being told by the government and everyone about this, we have raised our capabilities to such a level. Then it's like, puff, they don't Okay," she said.

A jet of the New England Patriots arrived at Boston Logan International Airport on April 1, 2020. A large number of N95 respirators shipped from China will be used in Boston and New York. When the pandemic began, Susanne Gerson, the executive vice president of a mask manufacturer in Massachusetts, said that she began to personally receive calls from doctors in the state looking for personal protective equipment. Jim Davis/Boston Globe via Getty Images hide caption

A jet of the New England Patriots arrived at Boston Logan International Airport on April 1, 2020. A large number of N95 respirators shipped from China will be used in Boston and New York. When the pandemic began, Susanne Gerson, the executive vice president of a mask manufacturer in Massachusetts, said that she began to personally receive calls from doctors in the state looking for personal protective equipment.

Gerson also called for more explicit emergency use authorization to allow repeated use of masks in response to serious shortages that no longer exist.

"When we made respirators, we were required by the FDA to put it on our packaging - it is a disposable product. But my understanding is that they are still in use... Usually I think the hospital is What they did is they "are putting another mask on the N95 in an attempt to keep it clean. But it was not designed that way," she said.

Larger manufacturers are also facing the consequences of market changes.

Honeywell recently announced that it will close the production of N95 respirators at its two factories in Smithfield and Phoenix, Rhode Island, and lay off more than 1,000 employees. But the company said it has made permanent changes to its structure so that it can increase capacity more quickly next time it is needed. Honeywell spokesperson Eric Krantz said: “Although we have closed some of the manual operations at the two factories, we are still maintaining an automated production line to continue to fulfill orders, and according to Need to increase production capacity."

Both the White House and members of Congress are very aware of the fragility of external dependence.

For the past three years, Congressman Anna Eshoo has represented the 18th congressional district near San Jose, California. She also serves as the chair of the Health Subcommittee of the Energy and Commerce Committee.

After the hearing in Washington, DC on May 14, 2020, California Rep. Anna Eshoo, chaired the Health Subcommittee of the Energy and Commerce Committee, addressed the media. Greg Nash/The Hill/Bloomberg via Getty Images caption

On May 14, 2020, at a hearing in Washington, DC, California Rep. Anna Eshoo, chair of the Health Subcommittee of the Energy and Commerce Committee, addressed the media.

"What shames us is that we find ourselves in where we are, especially at the height of the pandemic and when our health care workers have to take and do take the risk," often publishes anti-foreign remarks Eshoo, a Democrat of the United States, said. Dependence on bulk commodities such as personal protective equipment and medicines, and lack of domestic manufacturing.

"This is a distorted picture of America," she said. "We can do better."

The White House said it is developing a strategy to build a more resilient pandemic supply chain. The legislation recently signed by the President includes US$10 billion for investment in increasing manufacturing capacity and extending PPE contracts.

Like other members of AMMA, Armbrewster said he knew he had taken a risk.

"I made a stupid decision because I am an entrepreneur and I care about our country and bring back this kind of strategic manufacturing," he said. "A lot of people made the wrong decision to do the right thing at the time. This is the American spirit to me."