It wasn’t that long ago the United States, like many countries around the world, faced a critical shortage of personal protective equipment (PPE), largely because a significant portion of these supplies was sourced from abroad. Recognizing the need to boost domestic production to handle PPE surges in 2020, various initiatives were launched, promoting American ingenuity in ramping up local manufacturing.

In March 2022, as the Omicron wave settled, a significant development occurred at Sparrows Point in Baltimore, where United Safety Technology announced plans to establish a state-of-the-art nitrile glove factory. This initiative was set in a large warehouse formerly operated by Bethlehem Steel, symbolizing a revival of local manufacturing prowess. The company projected a $350 million investment, sourced from both public and private funds, aiming to create 2,000 jobs and achieve rapid operational status within a year. The groundbreaking ceremony attracted local politicians and federal officials, buoyed by a substantial federal contribution of $96.1 million.

However, two years after these promising beginnings, the factory remains incomplete, and production has yet to commence. The federal government has begun distancing itself from the project, and Dan Izhaky, CEO of United Safety Technology, has indicated a need for additional funding to continue. Izhaky pointed out the challenges of competing with established foreign manufacturers in producing PPE domestically at cost-effective prices.

This project was part of a broader national effort spurred by the pandemic-induced shortages, with the U.S. heavily reliant on overseas production. To address this vulnerability, Congress tasked an agency within the U.S. Department of Health and Human Services to encourage domestic production of PPE and pharmaceutical ingredients, allocating $16 billion to support 87 different manufacturing initiatives.

The planned Tradepoint Atlantic factory, situated in a key logistics hub in Baltimore County, was intended to produce billions of nitrile gloves annually. This was a part of the government’s wider strategy to enhance domestic production capabilities, which included allocating $574 million across six companies to increase nitrile glove production and an additional $123 million for a proposed nitrile rubber factory in Virginia. Despite these efforts, only two companies, including Showa US, an established glove manufacturer, have successfully started production.

The competitive global market presents a significant challenge. According to Tinglong Dai, a professor at Johns Hopkins Carey Business School, countries like China benefit from substantial government subsidies, making them dominant players in the PPE market. Dai suggests that for the U.S. to gain a competitive edge, it must not only produce PPE but also export it at a scale competitive with international prices.

As the pandemic becomes a less pressing public concern, the enthusiasm for investing in American-made PPE has diminished. The initial excitement surrounding the launch of United Safety Technology’s factory, which local leaders once described as a potential game-changer for the economy, has waned. Despite the anticipation and support, including $61 million in tax incentives and loans approved by Maryland (none of which has been disbursed), the project’s progress has stalled, leaving high hopes for economic revitalization through this venture unfulfilled.

Our leaders are already taking their eye off the ball in just a few years.