German leather exports hit by rising costs
The German Leather Federation (VDL) is blaming high raw material costs and the strong Euro for the 8% fall seen in its members’ exports during the first half of 2003. In a briefing given at the recent PLW Fair at Pirmasens, the association said Far Eastern and US exports had been especially badly affected. Domestic sales meanwhile fell 1.7%.
The VDL comprises 40 leathermakers which employ 3,200 workers between them. Of the industry’s total annual output of 17 million sq. metres, around 70% goes to furniture and 20% to shoe upper, lining and soling applications. The remainder is used in fancy leather goods and garment production. The Association is worried that reduced supplies of domestically-sourced raw materials will push costs up further in the coming months, ending the period of relative cost stability seen since the beginning of 2003. Raw material costs already account for around 50%-60% of the total.
