More US tanning capacity heads offshore
Further evidence, if it were needed, of the adverse affect that globalisation is having on the US tanning sector can be seen in the spate of tannery closures and consolidations that are currently taking place within the industry.
In Sheboygan, Wisconsin, Midwest Leather has said it is to close its Paul Flagg facility by the end of the year and transfer production to China. 105 job losses will result from the closure.
According to Tom Packee, Vice President and General Manager of Midwest Tanning, production will be switched to Jiagmen tannery, a joint venture with Austins Marmon located in Southern China. "As regrettable as the job losses are, in the end we had no choice but to move production offshore as that’s where our customers are, and they were insisting on us making the move," commented Packee, who added that the company’s US marketing activities would continue to be run from Sheboygan.
Another major leather producer to undertake major restructuring in the face of a shifting global demand is the automotive leather producer Seton Leather of Troy, Michigan. Earlier this year, the company transferred some production away from its Newark, New Jersey tannery, to plants in Mexico. "The pattern of production transfer currently taking place within Seton is reflective of wider events unfolding within the industry, commented Seton’s Senior Vice President, Perry Trechak. "By moving some of our production to Mexico we will be able to offer an improved level of service to those automotive suppliers who are based there. But we have no intention of closing any of our US facilities."
In Canada, Dominion Tanners is understood to have consolidated its operations at its Winnipeg, Manitoba, chrome tannery while the UK-based leather producer, Connolly, is also reported to have closed down its US manufacturing operations. Another recent addition to the tally of US tannery closures is Badger State of Milwaukee.
Commenting on the closures, Charlie Myers, President of the Leather Industries of America: "It used to be said that what’s good for the consumer is good for America, but as the fate of the US leather and footwear industries show, sadly this is no longer the case. The abandonment of the industry by the US government long ago, and its subsequent decision to let the retail sector dictate the course of the economy, has lead to the situation we are now at, where the US leather trade is effectively being driven offshore. It’s truly a sad time for American industry."
