Industry Analysis & Industry Trends
Leather wearing thin
Leather tanners have suffered over the past five years. Falling demand from auto, footwear and furniture manufacturers caused double-digit drops in revenue. The industry will stabilize over the coming years, as demand returns slowly, particularly in the global footwear market. However, price-conscious consumers will increasingly favor substitute products made from cheaper materials, such as vinyl and plastic. In addition, competition from imports will continue to pressure domestic operations... purchase to read more
Industry Report - Industry Investment Chapter
The Leather Tanning and Finishing industry uses labor as the primary input to production although it does use machinery during some processes. About 8.2% of revenue accounts for wages and about 2.4% of revenue are for depreciation costs. Therefore, industry participants, on average, spend $0.29 for machinery repairs per dollar spent on wages. This ratio represents a medium level of capital intensity.
Firms are aiming to be more efficient and cost-effective in their processes through using machinery to place themselves in a position to strongly develop export markets. The overall level of capital investment within the industry should increase further in the future as firms become more innovative in manufacturing and marketing processes... purchase to read more