N95 Mask Business Plan/ Production/ Feasibility Report PDF

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Summary

Industry Overview Globally, the market for N95 respirators, according to Reuters, was about $1 billion in 2019. That works out to roughly 1 to 1.2 billion units. The masks are, ultimately, worth about a dollar. North America accounted for about one-third of global demand. Only 14% of N95 masks ended...

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Industry Overview Globally, the market for N95 respirators, according to Reuters, was about $1 billion in 2019. That works out to roughly 1 to 1.2 billion units. The masks are, ultimately, worth about a dollar. North America accounted for about one-third of global demand. Only 14% of N95 masks ended up in the health-care industry. Any industry where there is grinding or sanding—whether it is in construction or manufacturing—uses N95-type masks. The U.S. face mask market is expected to reach US$556.7 million in 2024, growing at a CAGR of 1.30%, for the duration spanning 2020-2024. The factors such as a rise in carbon dioxide emission, growth in geriatric population, speeding-up of surgical procedures, rapid urbanization, upsurge in disposable income and increasing prevalence of airborne diseases are expected to drive the growth of the market. However, the market growth would be challenged by concerns regarding the disposal of non-woven face masks, prevalence of counterfeit products and supply shortage of face masks. A few notable trends may include acceleration in e-commerce business, rising shift towards disposable face masks, advancement in face masks and initiation of face masks production by fashion brands. The U.S. face masks market is growing at a fast pace due to the sudden outbreak of COVID -19. The novel coronavirus is having a severe impact on the total population as the number of confirmed COVID-19 cases continues to grow rapidly. As a protective measure, wearing face masks has become mandatory by people in order to control the spread of coronavirus. Owing to such a factor, the demand for a wide range of face masks is rising excessively and strengthening the supply chain, which is likely to propel the growth of the U.S. face mask market considerably. 3M is the largest producer, making about 35 million N95 masks a month in the U.S. The company is ramping production to about 50 million a month over the coming weeks. Honeywell is also increasing production. It hopes to be making 10 to 20 million N95 masks in the U.S. each month. Health-care workers need masks more than ever right now, but shortages are out there. New York state, for instance, recently recommended health-care workers reuse masks to stretch their supplies. New York City and the surrounding area remains the epicenter of the American outbreak. New York City reports more than 81,000 Covid-19 cases and 4,500 deaths, accounting for 19% of total cases and 30% of fatalities in the nation.

Porters 5 forces: 

Competitive Rivalry: recently due to surging demand many new entrants are not following proper guidelines and producing masks with hand sewing machines. Such producers incur lower costs to produce and as a result can undercut genuine mask producers

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Supplier Power: the supplier power is low for this business as no of suppliers is high so it is not possible to monopolize the business.

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Buyer Power: buyer power is low as number of buyers is very high as a result they are in no position to dictate prices.

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Threat of Substitution: this factor is low. There are no practical substitutes for n95 masks as of now.

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Threat of New Entry: the level of competition is high in this Business as anyone with half a million dollars can start producing n95 masks.

Threat of New Entry

Threat of Substitution

Competitive Rivalry 4 3.5 3 2.5 2 1.5 1 0.5 0

Supplier Power

Buyer Power

[1]Insignificant threat [2] Low level threat [3] Moderate level threat [4] Material threat [5] significant threat

SWOT Strength: The Business has a portfolio of talented individuals who have past management experience in medical equipment manufacturing business. They are familiar with supply chain of the product and also capable of handling the marketing side. Weakness: The project location is far from capital city so transportation costs for marketing and sourcing will be higher. In addition the remote location makes it difficult for getting labors and important facilities. Opportunity: In the Country where the business is located there are very few companies producing N95 masks and as a result it will be easier for the business to acquire market share. Threat: All the raw materials for production is imported so fluctuations in currency rates and similar factors pose a risk to production of n95 masks....