The leather industry over the past five years has reduced its income by exactly half due to falling demand from manufacturers of shoes, cars and furniture. The IBISWorld research team has made a forecast for the development of the leather industry in the United States before 2017. Now, 1600 companies have been created in the industry, employing more than 5000 people. The turnover in this segment is $ 2 billion. According to IBISWorld forecasts, the industry is stabilizing, as demand is slowly but recovering. Growth driver is ecologically oriented buyers who are ready to abandon shoes and upholstered furniture made of low-quality artificial materials.
According to IBISWorld analyst Olivia Tan, in 2010 the growing demand for leather along with rising prices (they increased by 24% per year) were able to provide tanners with an increase in profitability of 61%. This effect mitigated the effects of the 2008 crisis. However, from 2007 to 2012, net revenue fell and falls by $ 1,8 billion annually (about 1% per year).
Over the next five years, until 2017, industry revenues will decline, but at a slower pace, the United States will remain the world's largest exporter of leather, business consolidation through mergers and acquisitions will continue, and competition from importers will intensify.
New York will remain the largest leather cluster in the United States - due to the large number of farms and infrastructure for leather processing, it now accounts for 17% of total sales. Based on materials from analpa.ru.