Consumers may soon pay more for a wide range of everyday products as the ongoing Iran conflict continues to disrupt energy markets and global supply chains, manufacturers are warning.
Ronco Safety, a family-owned business based in Vaughan, Ontario, says soaring oil-linked raw material prices are already pushing production costs sharply higher for personal protective equipment and other goods made from petrochemicals.
The company says some products now cost 20 to 80 per cent more to manufacture, with certain items rising even further. Among the products expected to be hit hardest are nitrile disposable gloves, commonly used in hospitals, food service, cleaning and household tasks.
Nitrile gloves are made using petroleum-based synthetic rubber, and company officials say Canadian consumers could begin seeing both shortages and major price increases in May or June.
The main cause is disruption tied to the Strait of Hormuz, one of the world’s most important shipping routes for oil and natural gas. Supply restrictions and higher energy costs are affecting manufacturing hubs in Asia, where many global consumer goods are produced.
Other materials are also under pressure. Polypropylene, a plastic resin used in items such as protective clothing and packaging, is reportedly being rationed in some markets.
Retail analysts say the impact goes far beyond protective gear. Petrochemicals are used in thousands of common products, including kitchen tools, electronics, coffee makers, storage containers, toys and school supplies.
Because many goods already on shelves were produced months ago, consumers may not feel the full effect immediately. Experts say price increases could become more noticeable during back-to-school shopping season, with another wave possible during the holiday period.
While many companies are trying to absorb some of the added costs for now, analysts say that strategy is unlikely to last if the conflict and shipping disruptions continue.