According to the US Hide, Skin and Leather Association (USHSLA), the country’s hide and skins sector has changed dramatically over the past 10 years. While suppliers mainly provided raw materials to domestic tanners in previous years, the export business is now where the business is. The USHSLA claims many US tanneries have been forced to close because of environmental regulations, high labour costs and tight income margins.

The US hide and skins sector now exports more than 80% of its domestic production and China/Hong Kong has emerged as one of the largest importers of US hides and skins. Exports of these raw materials to China/Hong Kong increased 27% between 2003 to 2007, rising from 11 million pieces to 14 million pieces. This accounts for 50% of the country’s total hide and skin exports. The value of these exports to China/Hong Kong increased 53% during the same period from $591 million in 2003 to $902 million in 2007.