Market Intelligence: Planning reliability is in short supply
A new edition of our Market Intelligence newsletter went live on April 14.
Our exclusive Leather Pipeline column points out that ongoing geopolitical tensions are resulting in higher transportation costs, longer lead times and significantly reduced planning reliability.
It says there is a near-total lack of visibility and planning reliability, which has led many market participants to postpone decisions and focus solely on what is absolutely necessary in the short term. “In plain terms, there is a near-complete paralysis in the market,” it says.
It goes on to say that there is a risk that decisions affecting entire seasons will be made too late.
Meanwhile, rising production costs for leather continue to erode margins.
At the same time, it is increasingly evident that lower-grade hides are being diverted away from traditional leather processing and are now being used more and more for alternative applications.
Leather Pipeline draws the conclusion that the industry is navigating a phase in which short-term volatility and long-term transformation are occurring simultaneously.
Image: DP World.
