4 Factors Affecting Wholesale Scrub Manufacturers' Costs

Date: 2024/12/11 By: Zoe Zhu

Fluctuations in raw material prices, rising labor costs, increased equipment investment, and tariffs and logistics issues are all affecting wholesale scrub manufacturers’ profit margins.

raw material prices

In the production process of medical uniforms, raw materials account for a large part of the cost. Common medical uniform fabrics include cotton, polyester, rayon, and spandex. Price changes of each may affect production costs.

1. The impact of cotton price fluctuations

Cotton is the main component of many medical uniforms. Its price depends on global climate, picking seasons, and production in India, the U.S., and China. Due to the unstable global cotton supply, the price of cotton may fluctuate significantly within a year.

2.The impact of polyester prices

Polyester, as a synthetic fiber, is widely used in the production of medical uniforms. The price of polyester is mainly affected by the price of oil, because polyester is refined from petrochemicals. In recent years, international oil prices have fluctuated greatly. Polyester prices have also varied. wholesale scrub manufacturers need to keep an eye on the trends of the oil market to cope with changes in the price of polyester raw materials.

Rising raw material prices usually raise the cost of the final product. This, in turn, affects the selling price of medical uniforms.

To reduce the risk of price fluctuations, brand owners can cut procurement costs by buying more in bulk.

Labor costs

Labor costs have risen to varying degrees around the world. In developing countries, especially in Asia, wages are rising due to shifts in the labor market. Making medical uniforms usually requires highly skilled workers for cutting, sewing, and detailing. As wage costs rise, production costs naturally increase as well.
Especially in some low-cost countries, like Bangladesh, India, and Vietnam, labor costs are low. But, wages have risen in recent years as living standards improved. At the same time, the tight labor market has also forced wholesale scrub manufacturers to increase salary packages to attract and keep skilled workers.

Introducing high-tech automation equipment

As competition in the industry grows, consumers demand higher quality in medical uniforms. High-quality workmanship is now a key selling point. At the same time, many wholesale scrub manufacturers are using high-tech automation. They want to improve production efficiency, scale, and standards.
Automated production can speed up production. It can also reduce errors and improve product quality. This ensures that each product meets quality standards.

Automated equipment can reduce human errors. It can ensure each medical uniform meets the size, stitching, and appearance standards. For some high-demand medical uniforms, like protective clothing, refined work is crucial. Automated equipment can achieve these high standards.

Boston Scrub is one of the experienced wholesale scrub manufacturers. We invest in automation to ensure our products meet top-quality standards. Boston Scrub’s automated production line boosts efficiency. It also improves the comfort and durability of medical uniforms. Customers widely recognize these improvements.

Tariff and logistics issues

Globalization is speeding up. So, tariffs and logistics are now key costs for wholesale scrub manufacturers. Tariffs raise procurement costs for wholesale scrub manufacturers in cross-border trade. The speed of international logistics also affects wholesale scrub manufacturers’ costs. Medical uniforms must be delivered on time. Shipping delays may raise inventory costs.

Advantages of wholesale scrub manufacturers in China

Choosing wholesale scrub manufacturers undoubtedly have many advantages. China, as global manufacturing center, has major advantages. Its production costs, tech, product quality, and delivery times are the best.

1. Cost

China’s labor costs are low and it has a large cost advantage compared with Europe, the United States and other Asian countries. Also, China has strong supply chains and good raw material channels. This ensures low-cost, efficient production.

2. Technology

China’s medical uniform makers are investing in automation and tech. This lets them offer higher quality, more diverse products. Chinese suppliers can offer ODM/OEM services. They can customize products to meet market demand and customers’ needs.

3. delivery time

China has a complete logistics network and transport system. It can quickly meet global customers’ needs. Chinese wholesale scrub manufacturers have advantages over some foreign manufacturers. They have faster delivery and lower transportation costs. They can better meet the urgent global demand for medical uniforms.