26 January 2022

Our second Leatherbiz Market Intelligence report of 2022 appears today and is available for subscribers to read in the Intelligence section of the website. In a hard-hitting analysis of what could be in store for the global leather industry this year, the report expresses concerns about the economic situation that leather manufacturers will face.

In 2022, higher average raw material costs and considerably increased costs for energy and chemicals will initially put “a considerable strain” on liquidity.

Transportation complications continue and will also have an impact. Orders and deliveries will face delays, which will have an impact on turnover and cash flow in the coming months. Possible delays in deliveries will lead to a longer financing period.

“Experience shows that this is a very dangerous mix for many leather manufacturers,” the report concludes.

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