• Advertise
  • Contact Us
  • Supplier Directory
  • SCB YouTube
  • About Us
  • Login
  • Subscribe
  • Logout
  • My Profile
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Parcel & Express
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Robotics
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Customer Relationship Management
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • Green Energy
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • Sourcing/Procurement/SRM
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Management & Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Warehouse Automation
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
    • Webinar Library
  • PODCASTS
  • WHITEPAPERS
  • VIDEOS
Home » Forecasting & Demand Planning » Covid Test Makers Struggle to Cope With Whiplash From Omicron

Covid Test Makers Struggle to Cope With Whiplash From Omicron

Pandemic Testing
A health care worker gathers COVID-19 tests. Photo: Bloomberg.
January 10, 2022
Bloomberg

As the omicron variant sends U.S. Covid case numbers soaring to new records and drugstores and walk-in clinics clamor for test kits, suppliers have been struggling with their own mounting problems: Infected workers, delayed government authorizations for new tests and the pressure of panic buying and hoarding have left these companies scrambling.

Vault Health, a telehealth company that now sells tests, has found itself shuffling test samples across the country, as sick lab workers who usually process its at-home PCR test stay home. In New Jersey, one of the labs Vault regularly contracts with had more than 40% of its workforce out with Covid recently, said Jason Feldman, the company’s chief executive officer. Vault had to route tests from the Northeast to the Midwest, where there are fewer Covid cases. That combined with the volume of tests has led to a delay in processing, with test results taking 36 hours or more instead of the promised 24 hours.

Suppliers have also been caught off guard by uncertain demand beginning the delta wave last summer followed by the sheer speed of omicron’s onslaught. Some either scaled back or stopped production of Covid tests altogether as the virus waned and public health guidance suggested vaccinated people no longer needed to take tests. Leading test-maker Abbott Laboratories shuttered one of its factories, scaled back production at another and destroyed test card components that the company decided were likely to expire before they would ever be needed. Other smaller companies decided to wind down their Covid testing business altogether, pulling out of contracts to return to the production jobs they had prior to the pandemic.

“Less manufacturing and fewer distributors means more pressure on existing test makers,” said Feldman. “But even if there were enough tests available, everyone is hoarding rapid tests.”

All this comes amid the Biden administration’s pledge to make more than 500 million tests available to Americans for free. Officials said last week that more than 200 million rapid Covid tests are now available a month, up from around 50 million in September. Last fall, the administration said it would invest more than $3 billion in an effort to expand rapid virus testing. But it has not yet finalized the contracts for those 500 million rapid tests and it remains unclear how such contracts could be quickly filled. 

“There’s no such thing as 500 million tests available anywhere,” said Feldman.

Even companies that planned for an omicron-like event have been caught short, calling for some radical — and costly — measures to keep the flow going. Intrivo, maker of the popular On/Go at home rapid test, said that it decided not to slow down production in the days before the delta variant, anticipating another wave. But supply chain issues caused by Covid have recently forced the company to contract private jets to shuttle its tests around the country.

“This was the only thing available to move our tests quickly,” said CEO Ron Gutman. “When you have regular channels of transportation coming into constraints, you need to be very, very creative. I don’t fly private, but my tests do.”

Read more:
Omicron’s Spread Means More Food Outages at U.S. Grocery Stores
Truck Drivers, Seafarers Quit as Omicron Spreads

Last week, the company announced a partnership with the delivery upstart Gopuff to make on-demand tests available to consumers in 30 minutes.

Some companies say scaling up to meet demand is impossible when the goal post keeps moving as case numbers explode. Right now, the U.S. is reporting more than 500,000 cases a day on average, a more than 200% increase from two weeks ago.

Some supplies that might have been available in the U.S. are winding up in Europe, where more than 45 rapid antigen tests have been approved. In the U.S., only about a dozen have gotten a greenlight.

Ro, the telehealth company best-known for selling erectile dysfunction medications online, inked a deal nearly a year ago to sell tests made by Gauss Surgical. Months later, the test still hadn’t been authorized by the Food and Drug Administration (The testing business has since been spun off after Gauss Surgical was acquired by another company). In November, Ro finally got its hands on a small stock of Quidel tests. Eventually, it was able to gain a more steady flow of tests from Intrivo. With those added supplies, the company best known for selling generic Viagra is now one of the more reliable places to find a test. 

“Testing has not been front and center,” said ​​Mara Aspinall, a professor at Arizona State University’s College of Health Solutions and a board member of OraSure Technologies Inc. “We thought vaccination would be enough to end the pandemic,” said Aspinall, who has tracked testing supply issues. “This challenge existed before omicron.”

    RELATED CONTENT

    RELATED VIDEOS

    Forecasting & Demand Planning Inventory Planning/ Optimization HR & Labor Management Healthcare Pharmaceutical/Biotech
    • Related Articles

      Brown-Forman Embraces Visibility to Cope With Rapid Growth

      Lyft Is Cutting 13% of Staff to Cope With ‘Tough Reality’

      Study Reveals Disturbing News on Rising Inflation and Most Companies' Inability to Cope With It

    • Related Directories

      Tecsys, Inc.

      ProcureAbility

    Bloomberg

    Japan’s Omron Targets India for Manufacturing, Exports Push

    More from this author

    Subscribe to our Daily Newsletter!

    Timely, incisive articles delivered directly to your inbox.

    Featured Product

    Popular Stories

    • AERIAL VIEW OF A SHIPYARD SUPERIMPOSED WITH CYBERSECURITY SYMBOLS

      The Software Risk Hiding in Modern Supply Chains

      Business Strategy Alignment
    • 001_v1-(540p).jpg

      Watch: Closing the Skills Gap in Supply Chain Talent

      Education & Professional Development
    • GIST-webinar-Lyngsoe.png

      The Connected Factory: Building Real-Time Visibility

    • MULTIPLE CHAOTIC CHARTS ARE SUPERIMPOSED ON AN AERIAL SHOT OF A BUSY INTERNATIONAL PORT

      The Quest for Supply Chain Resilience Remains Challenging

      Supply Chain Visibility
    • An antique Pinball Machine with Ball in motion

      Why Brands Need To Rethink Their Returns Strategy Before Peak Season

      Air Cargo

    Digital Edition

    Scb q3 26 cover

    100 Great Supply Chain Partners 2026: The Secret to Supply Chain Success

    VIEW THE LATEST ISSUE

    Case Studies

    • Recycled Tagging Fasteners: Small Changes Make a Big Impact

    • A GRAPHIC SHOWING MULTIPLE FORMS OF SHIPPING, WITH A HUMAN STANDING AT THE CENTER, TOUCHING A SYMBOLIC MAP OF THE WORLD

      Enhancing High-Value Electronics Shipment Security with Tive's Real-Time Tracking

    • A GRAPHIC OF INTERLACING HONEYCOMBED ELEMENTS REPRESENTING GLOBAL BUSINESS TRANSACTIONS

      Moving Robots Site-to-Site

    • JLL Finds Perfect Warehouse Location, Leading to $15M Grant for Startup

    • Robots Speed Fulfillment to Help Apparel Company Scale for Growth

    Visit Our Sponsors

    4flow Amazon Freight Anaplan
    Arkieva AutoStore Blue Yonder
    Canadian National Railway Company Carton Cloud CoEnterprise
    Dassault Descartes Dexory
    Duravant E2Open EPG
    General Logistics Systems GEP Hy-Tek
    iGPS Knapp Korber
    Lyngsoe Odyssey Logistics OMP
    PeakAI Procurability Quinyx
    SAP Sikick Staples
    S&P Global Mobility Systech TADA
    Tive TransImpact US Bank
    Werner WSI
    • More From SCB
      • Featured Content
      • Video Library
      • Think Tank Blog
      • SupplyChainBrain Podcast
      • Whitepapers
      • On-Demand Webinars
      • Upcoming Webinars
    • Digital Offerings
      • Digital Issue
      • Subscribe
      • Manage Email Preferences
      • Newsletters
    • Resources
      • Events Calendar
      • 2026 Event Coverage
      • SCB's Great Supply Chain Partners
      • Supplier Directory
      • Case Study Showcase
      • Supply Chain Innovation Awards
      • 100 Great Partners Form
    • SCB Corporate
      • Advertise on SCB.COM
      • About Us
      • Privacy Policy
      • Contact Us
      • Data Sharing Opt-Out

    All content copyright ©2026 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

    Design, CMS, Hosting & Web Development :: ePublishing