Rawhide: Declining downsream demand will negatively affect revenue growth

IBISWorld’s Leather Tanning & Finishing market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.


Industry Threats & Opportunities

  • Despite increased demand from the automotive market, the industry has been adversely affected by import competition
  • The domestic footwear and apparel manufacturing industries have continued to decline over the past five years
  • The US dollar is projected to remain strong over the next five years

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    Industry Analysis & Industry Trends

    The Leather Tanning & Finishing Industry has declined over the past five years. Falling demand from auto, footwear and furniture manufacturers caused 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...

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    Industry Report - Industry Locations Chapter

    Leather tanneries are often located close to upstream suppliers of raw hides or close to downstream buyers. Enterprises choose these locations to reduce transportation costs and gain easier access to supplies and markets.

    The Mid-Atlantic region is estimated to account for the largest share of establishments at 23.7% in 2016. New York makes the greatest contribution for this region, accounting for about 16.7% of establishments. This is because there are livestock farms in New York that are able to provide the skin used for tanning and finishing. In addition, New York encompasses many downstream markets for leather shoes and handbags that are often considered luxury items.

    The Southeast region is forecast to comprise the next largest proportion of establishments at 16.4% i..

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    Additional Insights for the Leather Tanning & Finishing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Leather Tanning & Finishing Industry are

  • Production of goods currently favored by the market
  • Ability to control stock on hand
  • Guaranteed supply of key inputs
  • IBISWorld analysts also discuss how external factors such as Consumer Confidence Index and New car sales in the Leather Tanning & Finishing industry impact industry performance..

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    Industry Products

    What is the Leather Tanning & Finishing Industry?

    Companies in this industry are involved in the following activities: tanning, currying and finishing hides and skins; having others process hides and skins on a contract basis; and dyeing and finishing furs. Operators in this industry generally purchase or obtain raw skins from slaughterhouses and treat and dye them to create finished leather.

    Industry Products
    Upper leather (including patent)
    Wet blues (unfinished)
    Upholstery leather
    Garment leather
    Contract or commission leather
    Calf, sheep and other animal leather
    Sole and accessories leather
    Other leather
    Industry Activities
    Tanning hides and skins
    Currying hides and skins
    Finishing hides and skins
    Dyeing furs
    Finishing furs

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Consumer Confidence Index
  • New car sales
  • Trade-weighted index
  • Demand from shoe and footwear manufacturing
  • Private spending on home improvements

  • Current Performance
  • Downstream demand slowly rebounds
  • International trade
  • Competition from substitutes
  • Chart: Revenue Growth

  • Industry Outlook
  • Stagnant exports
  • Rising competition from imports and substitutes
  • Contracting downstream demand
  • Investment to maintain profitability
  • Table: Leather Tanning & Finishing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Leather Tanning & Finishing Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Costume & Team Uniform Manufacturing
  • Shoe & Footwear Manufacturing
  • Leather Good & Luggage Manufacturing
  • Automobile Interior Manufacturing
  • Household Furniture Manufacturing
  • Athletic & Sporting Goods Manufacturing
  • Gym & Exercise Equipment Manufacturing

  • Key Selling Industries
  • Chemical Product Manufacturing
  • Dye & Pigment Manufacturing
  • Meat, Beef & Poultry Processing

  • Products & Services
  • Wet blues (unfinished)
  • Upper leather (including patent)
  • Upholstery leather
  • Garment leather
  • Other (including furs)
  • Calf, sheep and other animal leather
  • Contract or commission leather
  • Sole and accessories leather
  • Chart: Leather Tanning & Finishing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Exports - Other
  • Exports - Mexico
  • Apparel, footwear and accessories manufacturing
  • Exports - China
  • Furniture, automobile and aircraft seating manufacturing
  • Other
  • Chart: Major Market Segmentation for the Leather Tanning & Finishing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Leather Tanning & Finishing

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Leather Tanning & Finishing Industry

  • Industry Globalization
    Major Companies
    Lear Corporation
  • Table: Lear Corporation - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Leather Tanning & Finishing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Leather Tanning & Finishing Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • New Car Sales (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Jargon & Glossary
  • Process of preparing leather for boots, shoes and other products that involves scraping, beating, smoothing and coloring leather.
  • Finishing
  • Process of applying a finishing material to the leather's surface. This represents the final stage of leather processing.
  • Leather Tanning
  • Process of making leather from rawhide.
  • Offshore
  • The relocation of a company's business process, such as manufacturing or accounting, from one country to another, whether the work is outsourced or stays within the company.
  • Outsource
  • To procure goods or services under contract with an outside supplier.
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    This report on Leather Tanning & Finishing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Leather Tanning & Finishing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Leather Tanning & Finishing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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