Pandemic Solidifies Investor Interest in Safety Products Businesses

From face masks to upgraded air filtration systems, employers implemented processes and protocols to keep employees safe throughout COVID-19. While demand for safety products skyrocketed during the peak of the pandemic, there has been a fundamental shift in the importance individuals place on health, wellness and safety that has “reset” demand at a “new normal.”

Safety products have always been critical—not discretionary—which became even more apparent during COVID-19. As a result, many products have gone from “nice-to-have” to “must-have.” As employee protection and workplace safety continue to move up the corporate agenda, the importance of safety on a global basis has risen. In turn, safety product companies provide an attractive investment opportunity.

Beyond the cultural shift with respect to safety, regulatory drivers globally have mandated an ongoing need for safety products, leading to long-term, sustainable growth for these businesses. Governing bodies like the Occupational Safety and Health Administration (OSHA) and the Centers for Disease Control (CDC) in the U.S. or the European Agency for Safety and Health at Work are updating standards at an increasing rate, driving the need for new and innovative safety products. Additionally, multinational companies are increasingly developing their own corporate standards for employee safety that go beyond regulatory requirements to standardize their policies across geographies.

While most safety products like disposable gloves or safety cutting tools are relatively immaterial in cost, they provide a layer of protection for companies far beyond their value. Prioritizing the purchase of safety products ultimately helps companies avoid headline risk and costly events such as worker compensation claims following an injury, lawsuits and even employee death.