Leather Prices Rise By 40%, Or Lead To The Closure Of Small And Medium-Sized Enterprises

Since this year, raw material Most of the market rose, as raw materials of leather can not be immune, the rise is as high as 40%. Some practitioners told reporters that, coupled with the continuous rise in labor costs, there may be 60% of small and medium-sized leather enterprises in danger of closing down.
According to a person with its own leather garment processing plant, the main raw material for leather industry this year has increased from about 10 yuan per square foot last year to 15-16 yuan this year. In terms of wages, as leather clothing is mainly sewn by hand, the guaranteed annual wage of lathe workers is 55000 yuan this year, which was only more than 40000 yuan last year, an increase of at least 25%. The annual wage of some skilled masters has increased to 70000-75000 yuan.
Another leather clothing enterprise told reporters that the average wage of workers in leather clothing enterprises has been rising for four years in a row, and this year it has increased by 15% - 20%. In addition to the expenses of auxiliary materials and store rent, if leather clothing is sold at last year's price, there will be no profit.
According to the above-mentioned leather industry, in order to offset the pressure of rising raw materials and labor costs, leather clothing prices have increased this year, but the range is only about 8% - 15%, which is far lower than the increase of more than 40% in the cost of raw materials. Even if the price increase is limited, the market demand for leather clothing has obviously declined.
Industry insiders say that this year, the number of customers to take goods is about half, and the order amount is also reduced. In the past years, if the annual sales volume of some small enterprises was 10000 pieces, generally, by September to October, the production volume of leather goods had reached about 7000 pieces, and this year only about 4000 pieces.
Chairman of Haining Picheng Any law Yesterday told our reporter that this year's leather industry is facing many adverse factors such as raw materials, labor and financing costs. Some small-scale enterprises and newly established leather enterprises are under great pressure to survive. However, it is not normal for every factory in the leather industry to make money. The elimination rate of 10% in the leather industry is conducive to the development of the industry.
Another Haining listed company in Hong Kong Carson The cold wave of leather industry has been felt in the world.
Affected by the sharp increase of cattle hide and wages, and the weak market demand outside Shanghai, Carson international furniture and leather manufacturing business had a revenue of RMB 738.6 million in the first half of this year, a year-on-year decrease of 19.1%. The business lost 14.2 million yuan, while the profit was 85.1 million yuan in the same period last year.