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Raw Materials Rose 40% &Nbsp; 60% Small And Medium-Sized Leather Enterprises Are Facing Close Door Risks.

2011/12/12 10:04:00 26

Raw Materials Rose 46% Into Small And Medium-Sized Leather Enterprises Facing The Danger Of Closing Down

Since the beginning of this year, the price of leather as raw material has risen by more than 40%, coupled with the continuous rise in labor costs.

Leatherwear

The industry is facing a grim situation.

Some practitioners told reporters that there were 60% small and medium-sized leather enterprises in danger of closing.

A person who owns its own leather processing plant introduces the main needs of the leather industry this year.

Raw material

Sheepskin rose from around 10 yuan per square foot last year to 15~16 yuan this year.

In terms of wages, the annual salary of Turner is 55 thousand yuan because of leather sewing mainly by hand sewing. Only more than 40 thousand last year, at least 25%.

wages

Up to 70 thousand ~7.5 yuan.

Another leather garment company told reporters that the average wage of leather workers has been rising for 4 consecutive years, and this year it has increased by 15%~20%, plus the expenses of accessories and store rents. This year's leather goods are no profit if they sell at last year's price.

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.