Raw Materials Have Risen By More Than 40%; &Nbsp; 60% Small And Medium-Sized Leather Enterprises Remain Hidden.

This year, as a result of raw material The price of leather has risen by more than 40%, coupled with the continuous rise in labor costs. Leather industry The overall situation is grim. Some practitioners told reporters that there were 60% small and medium-sized leather enterprises in danger of closing.

One person who owns his own leather processing factory said that the main raw material needed for leather industry this year rose from around 10 yuan per square foot last year to 15~16 yuan this year. In terms of labour prices, the price of annual salary of Turner is 55 thousand yuan because of leather sewing mainly by hand sewing. Last year, only more than 40 thousand increased by 25% at least, and some skilled teachers increased to 70 thousand ~7.5 yuan a year.

Another leather garment company told reporters. Leather The average wage of the workers has increased continuously for 4 years, and this year has increased by 15%~20%, plus the expenses of accessories and store rents. If the leather goods are sold at the price of last year, there will be no profit.

Above leather industry personages reflect, in order to offset the pressure of raw material and labor cost rising, the price of leather goods has been raised this year, but the range is only 8%~15%, which is far lower than the increase of raw material cost by more than 40%. Even though the price increase is limited, the market demand for leather goods has declined significantly.

Insiders say that the number of customers receiving goods is about half this year, and the order amount is also decreasing. In previous years, if a small enterprise, if the annual sales volume is 10 thousand pieces, usually to 9~10 months, the production of leather goods has reached about 7000, this year, only about 4000 pieces.

Haining Leather City chairman, yesterday, told reporters that the leather industry is facing many adverse factors such as raw materials, labor and financing costs. Some small businesses and newly established leather enterprises have greater pressure to survive. However, the situation of each factory in the leather industry is making money. The 10% elimination rate of leather industry is conducive to the development of the industry.

Haining another Hongkong listed company Carson international has felt the cold wave of leather industry.

Due to the sharp rise in leather and wages and the weak demand in Shanghai, Carson international furniture and leather manufacturing business has only 738 million 600 thousand yuan in the first half of this year, a decrease of 19.1% compared with the same period last year. This part of the business lost 14 million 200 thousand yuan, compared with 85 million 100 thousand yuan in the same period last year.