German Leather Federation looks back on 2002
After expanding its turnover by 10.1% to Eur600 million in 2001 (source: German Leather Federation), the German leather industry grew by a more modest 7.4% in the first half of this year. Of the total 2001 – and in spite of the strength of the euro - 47% was derived from direct exports and around 20% from indirect business. For the full year, production of bovine grain leather is expected to rise to Eur14 million square meters. – the main engine for growth being continued strong demand from the automotive sector.
Steady hide price levels, brought on by rising leather demands in most international markets and stabilisation at high levels for automotive leathers in Germany, resulted in firm prices for raw cow hides and calf skins over the first half of the year, making it difficult for most leather manufacturers to stay in the market with cost covering prices.
It was quite a different story in the footwear market, where sales slumped 4% as the economic recession at home took hold. Had it not been for the resilience of the eastern European and Far Eastern export markets, are far worse situation might have prevailed. As it was, no let-up was seen in the migration of footwear manufacturers to lower cost centres abroad and the increasing focus on the high end market among those that had chosen to remain. As in previous years, the rise in production was more or less evenly balanced between the domestic market (+7.8%) and rising exports (+6.9%).
