Francisco Pugliese, president of Argentina’s CAIPIC - Chamber of Footwear Component Manufacturers - has delivered his assessment of the sector’s immediate prospects following the devaluation of the Argentine peso.

Pugliese said that in his view, devaluation had enabled the peso to recover at least some of its competitiveness in the international marketplace. Both the leather and leather goods manufacturing sectors were beginning to find their feet again and were making good progress towards re-establishing themselves as credible exporters.

Argentine leather products and components have much to offer, Pugliese asserted. Not only do they benefit from consistent standards of quality, but they also possess a style all their own – a style borne from many years of having to compete against European imports on equal terms. The fact that the bulk of the Argentina’s leather is used in automotive applications tells the international marketplace everything it needs to know about its quality, Pugliese stated.

He also said it was imperative to get the industry back on its feet as quickly as possible, so that the skilled workforce made redundant during the crisis could be put be put back to work without delay. At the same time, he stressed the importance of using domestically-produced raw materials, so that the benefits of any upturn in business is shared with the raw material supply sector.

"After ten years of disastrous currency exchange policies, the Argentine leather sector is on its knees," Pugliese said. "But with proper management I believe recovery is both feasible and inevitable. Either way, the process will be gradual with the footwear and leather goods sector providing the main engine for growth. The development of components requires high levels of investment which is can only be recovered one small product at a time. Given the small size of the domestic market for components, the only realistic alternative therefore is for us to export, which means we cannot afford to skimp on quality."

Pugliase also called for greater government commitment, stating that a strategy for growth put together by representative of the footwear and leather sector and presented to the government had yet to be acknowledged. At the same time, he urged greater cohesion between the different government bodies, so that the framework for growth was provided.