The year in review – International Council of Tanners reports on gloomy 2000 for British tanning industry
The current foot and mouth disease crisis notwithstanding, 2000 was a difficult year for the UK tanning industry.
In its ‘State of the Industry’ report for the year, the International Council of Tanners (ICT) paints a depressing picture of escalating hide prices, weakened margins and reduced levels of competitiveness in the global marketplace because of the continuing high value of Sterling.
Although the demand for leather remained strong throughout the year – particularly in wet blue and car upholstery – increased hide prices meant margins were put under severe pressure. Between March and November, hide prices rose by a massive 35% - mainly because of the disruption caused by the BSE crisis in Europe to traditional patterns of supply. Many tanners found that their customers were unwilling or unable to take on board the prices rises, with the result that margins were severely weakened.
Though there were one or two bright spots, such as a slight recovery in the demand for footwear, prospects remained downbeat throughout the year.
