Blog Post Updated: April 7, 2026 and April 18, 2025
Orginial Publish Date: January 24, 2022

Written by: Andrew Palmer

Supply chain disruption is no longer a temporary condition for healthcare organizations, it’s the operating environment. Even as pandemic-era constraints eased, new pressures have emerged. In 2026, geopolitical conflict, shifting trade policy, and rising energy costs are introducing a new layer of volatility that is impacting everything from pharmaceuticals and medical devices to the labels that support safe patient care.

For healthcare supply chain leaders, the challenge is no longer reacting to disruption. It’s building systems that can operate reliably despite it.

Key Takeaways

  • Supply chain disruption is ongoing, not temporary - Healthcare organizations must plan for continued volatility driven by geopolitical conflict, trade policy shifts, and energy price fluctuations.
  • Geopolitics is now the primary supply chain risk - Tariffs, regional conflicts, and shifting trade alliances are reshaping how and where products are sourced.
  • Rising oil prices directly impact label costs - Many label materials and adhesives are petroleum-based, making them sensitive to energy market changes.
  • Healthcare supply chains require higher reliability than other industries - Patient safety, regulatory requirements, and clinical workflows depend on consistent access to critical supplies, including labels.
  • Not all lower-cost substitutes perform adequately - Label performance (adhesion, temperature tolerance, barcode readability) directly impacts safety and efficiency.

Supply Chains Are Becoming Geopolitical

Supply chain experts now view geopolitics as the primary risk driver for global logistics.

One of the most visible effects is the rise of trade tensions. As nations introduce tariffs, sanctions, and industrial policies, businesses are shifting production to alternative countries with more favorable trade agreements.

In the past, many companies focused primarily on cost efficiency when designing their supply chains. Today, maintaining flexibility and reducing risk are considered equally important priorities.

The Shift Towards Regional Supply Chains

The pandemic highlighted the fragility of "just-in-time" supply chains, driving a shift to "just-in-case" strategies that prioritize supply stability through near-shoring or local manufacturing. This regionalization helps businesses reduce exposure to trade restrictions and geopolitical risks. Shorter supply chains also allow companies to respond more quickly to changes in demand or unexpected disruptions. By sourcing materials from multiple locations, companies can reduce the risk of disruptions caused by political instability or trade restrictions.

UAL, and parent company RRD, operate 12 manufacturing facilities located throughout the United States.

How Oil Impacts Label Material Prices

Oil prices don’t just increase the cost of filling up your gas tank. They impact hundreds of products including labels. Label materials including vinyl, polyester and polypropylene and acrylic and rubber based adhesives are all derived from petroleum based feedstocks.

Reduced output in the Middle East caused by closure to the Strait of Hormuz has caused the price per barrel of oil to increase from under $70 before the war with Iran to over $100 in late March, 2026. And whether you’re procuring supplies from nearby or off shore, increased fuel costs impact the amount you pay for your supplies.

Depending upon the duration of the conflict, you can expect the price of certain labels to increase.

The Impact of Tariffs on Healthcare Supply Chains

Trade policy continues to add another layer of uncertainty. While recent legal rulings have altered how tariffs are applied, they have not eliminated their impact.

New tariffs and evolving trade policies are affecting a wide range of healthcare-related products, including:

  • Pharmaceuticals
  • Medical devices
  • Consumable supplies

Even if tariffs are reduced, the effects are not immediate. Existing contracts, distributor pricing structures, and inventory already in circulation can delay cost relief from several months to years.

As a result, many healthcare organizations are actively working to diversify supply chains and reduce reliance on high-risk sourcing regions.

What Supply Chain Volatility Means for Healthcare Labeling

Much of the focus in healthcare supply chains is placed on high-cost items like pharmaceuticals and medical devices. But, smaller operational supplies, such as labels, are equally critical.

Without reliable access to labeling:

  • Medication safety can be compromised
  • Lab workflows can be disrupted
  • Compliance with Joint Commission can be impacted

In an environment of ongoing disruption, labeling programs must be:

  • Consistent
  • Reliable
  • Readily available

Sourcing labels from U.S.-based manufacturers can help reduce exposure to tariffs, shipping delays, and raw material shortages which ensures continuity for essential workflows.

United Ad Label supports healthcare organizations with domestic manufacturing and strong supplier relationships designed to maintain a consistent supply of critical labeling products.

What is Causing Healthcare Supply Chain Problems?

While new geopolitical and economic pressures are emerging, several persistent challenges continue to impact healthcare supply chains:

  • Labor costs - the competitive labor environment combined with a shortage of available qualified staff have driven up labor costs
  • Labor shortages - the extraordinary strain of the pandemic, early retirements, workers choosing to leave the profession and schools struggling to expand capacity to meet the demand for care, especially in nursing, makes it challenging to meet manpower targets
  • Supply costs - hospitals’ total spending on supplies increased 9.9% in 2025, reflecting higher prices for everything from disposable medical gloves to pacemakers, ventilators and other technology
  • Product Shortages - from drug shortages to medical supplies, providers expect supply chain challenges to remain stagnant or worsen.
  • Interest rates - The Federal Reserve has maintained higher interest rates in an effort to balance concerns over inflation and unemployment. This has increased debt costs and led to a reduction in capital investments.

Steps to Minimize Supply Chain Challenges

While some supply chain challenges in healthcare also affect other industries, variations exist that require unique mitigation strategies. For example, Mike Rip, Director of the Master of Science in Healthcare Management at Michigan State University stated, “Healthcare is not based on supply and demand. It can’t be ‘stocked’ like it’s a traditional product. So, a hospital’s supply chain is very different from a business or company’s supply chain.” Demand is dynamic, interconnected, and directly tied to patient care.

To improve resilience, organizations are focusing on several key strategies:

  • Centralize and Coordinate Inventory - Pooling inventory across departments or facilities helps balance supply and demand while reducing overall inventory requirements.
  • Standardize Products and Workflows - Reducing variation across products, such as IV line and tubing label formats, improves efficiency, simplifies procurement, and minimizes errors.
  • Strengthen Supplier Relationships - Reliable supplier partnerships are critical for maintaining continuity of supply during disruptions.

Be Careful with Product Substitutions

Standardization efforts can lower costs and reduce supply chain inflation, but they can fail if done without input from clinicians. If the care team uses unfamiliar or suboptimal products, it may raise error risks or negative outcomes. For example, labeling performance depends on:

  • Adhesion across temperature ranges
  • Material durability
  • Barcode readability and opacity

Lower-cost alternatives may fail under real-world conditions, leading to:

  • Workflow disruptions
  • Additional labor for rework
  • Increased risk of labeling errors

Testing and validation are essential before switching to new products. The lowest unit cost does not always translate to the lowest total cost. Striking the balance between costs and quality outcomes is key.

The Impact of Process Improvements

In a tight labor market with wages trending upwards, standardizing certain product categories can result in process enhancements that boost productivity, maximizing the value of the patient care team.

Standardizing labeling practices can drive meaningful improvements. For example:

  • Consistent date and time formats reduce interpretation errors
  • Standard label placement improves workflow clarity
  • Uniform labeling systems enhance compliance and patient safety

These process improvements reduce variability, streamline tasks, and allow clinical teams to focus more time on patient care.

What to Expect in the Months Ahead

Supply chain volatility is likely to remain a defining feature of healthcare operations in 2026 and beyond.

Organizations should expect:

  • Continued geopolitical uncertainty
  • Ongoing fluctuations in energy and material costs
  • Persistent pressure on labor and supply availability

United Ad Label

United Ad Label can add a level of certainty to supply chain challenges. We specialize in providing a reliable source for a diverse range of labels critical to healthcare facilities. Partnering with UAL can prevent the possibility of label shortages that could disrupt patient care. Contact us to learn more.

Frequently Asked Questions

What is causing supply chain disruptions in healthcare in 2026?

Supply chain disruptions in 2026 are being driven by a combination of geopolitical conflict, shifting trade policies, rising oil prices, and ongoing labor shortages. These factors are impacting manufacturing, transportation, and the availability of critical healthcare supplies, creating ongoing uncertainty for procurement teams.

How do geopolitical events affect healthcare supply chains?

Geopolitical events such as regional conflicts, trade disputes, and sanctions can disrupt shipping routes, increase costs, and limit access to key materials. For healthcare organizations, this can result in longer lead times, higher prices, and reduced product availability across essential categories.

Why are oil prices important for healthcare supply costs?

Oil prices influence the cost of transportation as well as the production of petroleum-based materials used in many healthcare products. Label materials, adhesives, and packaging components are all derived from oil, meaning price increases can directly impact supply costs.

Why is supply chain reliability critical in healthcare?

Unlike other industries, healthcare cannot delay services due to supply shortages. Reliable access to supplies, including labeling, ensures accurate medication administration, proper specimen handling, regulatory compliance, and overall patient safety.

How can healthcare organizations reduce supply chain risk?

Healthcare organizations can reduce risk by diversifying suppliers, sourcing products domestically when possible, standardizing product formats, centralizing inventory management, and building strong relationships with reliable vendors.

What role do labels play in healthcare supply chains?

Labels support critical workflows across healthcare environments, including medication administration, lab testing, patient identification, regulatory compliance and more. Without reliable labeling, these processes can become inefficient or prone to error.

Are lower-cost label alternatives a good way to reduce expenses?

Lower-cost alternatives can help reduce expenses, but only if they meet performance requirements. Labels must perform across temperature ranges, adhere properly, and support accurate barcode scanning. Poor-performing labels can create workflow disruptions and patient safety risks.

Written by: Andrew Palmer
As Director of Sales, Labels at RRD, I specialize in creating, developing, and implementing client programs across a diverse range of industries including E-commerce, Retail, Logistics, Supply Chain, Industrial Manufacturing, Consumer Durables, CPG, Medical Device, Pharmaceutical, Health and Personal Care, Automotive, and RFID.