December manufacturing output declined, to finish 2022, according to Purchasing Managers’ Index (PMI) reports. The reports’ key metric, the PMI, came in at 48.4 (a reading of 50 or higher indicates growth), down 0.6% from November’s 49.0, contracting, at a faster rate, for the second consecutive month. The last two months of contraction were preceded by a stretch of 29 consecutive months of growth. Reports added that the overall economy contracted in December, following 30 consecutive months of growth.
Russia’s invasion of Ukraine sparked an unprecedented boycott by the West, which moved to essentially unplug the world’s 11th-largest economy in a matter of weeks. But what began as moral outrage quickly turned into economic pain in Europe, where high energy prices are sowing political unrest.
Metal Expert ISM said that 13 sectors reported contraction, including: Wood Products; Fabricated Metal Products; Chemical Products; Paper Products; Plastics & Rubber Products; Electrical Equipment, Appliances & Components; Furniture & Related Products; Apparel, Leather & Allied Products; Computer & Electronic Products; Machinery; Food, Beverage & Tobacco Products; Transportation Equipment; and Miscellaneous Manufacturing. ISM also reported that only two manufacturing sectors saw growth in December—primary metals and petroleum & coal products, with the latter representing the only manufacturing sector to see moderate growth in December.
A new world energy order is taking shape. And 2023 may be remembered as the year of a new world energy order between China and the Middle East took shape. A lot more oil trade will be done in renminbi. That would mark a massive shift in the global energy trade. Iran and Venezuela account for 40 per cent of Opec+ proven oil reserves, and all of them are selling oil to China at a steep discount while the Gulf Cooperation Council (GCC) countries account for another 40 per cent of proven reserves. The remaining 20 per cent are in regions within the Russian and Chinese orbit.
2023 April, 5th update
Leather for furniture in the context of sustainability. According to the Sustainable Furnishings Council, sustainable business and manufacturing practices aim to minimize carbon emissions, reduce other pollutants, and remove unsustainable materials and harmful chemical inputs from all furniture product platforms. However, according to a survey by Furniture Today, “Upholstery players are taking on the sustainability challenge”, sustainability is not something the furniture industry has pursued much so far, but there is an ongoing focus due to consumer push. (Read more)
2023 March, 23rd update
Robust growth in India’s chemical sector driven by biofriendly products. In the report titled “India: The Next Chemicals Manufacturing Hub,” McKinsey said the country’s chemical industry has performed better globally in demand growth and the sector will grow by 11-12% to 27% and 7-10% from 2027 to 20 40, tripling its global market share by 2040. The report confirms the growth in demand for biofriendly products globally, which could benefit India, as it is among the main producers of both agrochemical products and inorganic chemical and petrochemical products. (Read more)
EU Commission wants 10% of critical raw materials mined in Europe (EU’s Critical Raw Materials Act). According to EURACTIV.com, the EU believes that “10% of the Union’s consumption of strategic raw materials” should be extracted in the Union. In addition, 15% of the Union’s annual consumption of each critical raw material is expected to come from recycling, reads the updated document of the Législation sur les matières premières critiques (En cours 08/03/2023). (Read more)
2023 March, 16th update
A livestock crisis is approaching due to drought. Cattle are dying in droves in Somalia, which is experiencing one of the worst droughts in the country’s recent history. Drought has become a major problem also for Argentine ranchers. About 26 million cattle are at risk of dying from lack of water and feed. From Africa to South America, the phenomenon of drought, which began in 2020, shows consequences in sectors that affect everything from trade to the economy, the environment, wildlife and finally industry that relies on agricultural resources and livestock. (Read more)
2023 March, 9th update
Market for substitutes for materials of animal origin. Gli investimenti in materiali di nuova generazione per sostituire i prodotti di origine animale nella moda e in altri settori sono diminuiti di oltre il 50% lo scorso anno, secondo un nuovo rapporto della Material Innovation Initiative (MII). [Investments ‘halved’ in next gen materials – Ecotextile News]. (Read more)
2023 February, 24th update
Fertilizer profits skyrocket. A Moroccan fertilizer firm saw record profits after the war in Ukraine sent European feedstock prices soaring. The most common fertilizers are synthesized from methane. Organic fertilizers are products that result from processes of transformation of organic waste, for example tannery waste. [Ukraine war fallout benefits one of world’s biggest fertiliser …– FT]. (Read more)
Uganda, Kawumu Leather Tannery products: Source of hides and skin. Farmers interested in supplying hides and skins to Kawumu Leather Tannery are to sign supply contracts with State House Uganda at the Harvest Money expo. Farmers will also be given tips on how to slaughter animals in a way that enables them to produce quality hides, which in this context are those without cuts. [ State House Tannery to sign deals with farmers to supply … – newvision.co.]. (Read more)
2023 February, 14th update
Will US-India Strategic Cooperation also have the effect of greater integration of trade value chains between the West and India? US National Security Advisor Jake Sullivan received his Indian counterpart Ajit Doval at the White House to formally establish a high-level collaboration in the field of defense, but also emerging technologies. [U.S. and India launch high-level defense and tech initiative – washingtonpost.com]. In January 2023, India’s manufacturing sector saw strong growth, as the sector’s seasonally adjusted performance managers’ index (PMI) was 55.4, marking a nineteenth successive monthly improvement in operating conditions, as per a report by S&P Global. [India witnesses robust growth in manufacturing sector in Jan …– KNN India]. (Read more)
2023 February, 10th update
Inspiramais successfully completes first edition of 2023. The 27th edition of Inspiramais, which took place from January 24 to 26 at the Events Center of the Federation of Industries of the State of Rio Grande do Sul (FIERGS), in Porto Alegre, had double-digit growth in business. The fair that revealed trends in inputs and materials for the footwear, clothing, accessories and home industry is the only one of its kind in the region. [Inspiramais conclui primeira edição de 2023 com êxito– Fashion network]. (Read more)
2023 January, 31st update
The integration of the luxury value chain. From Prada to LVMH, fashion brands are increasing their investments in suppliers, benefiting both sides. Many brands acquire tanneries and textile manufacturers. They acquire smaller, often family-run Italian luxuryproducers, putting them under the umbrella of the group, but with shared management and operationalresources.Suppliers in turn are involved in the structure of the larger group, with entrepreneurs remaining to manage their own companies. Vogue Business assesses how difficult and expensive this integration can be. [Luxury brands are snapping up suppliers – Vogue Business](Read more)
2023 January, 10th update
The new energy map. Russia is expanding its gas pipeline to China, and the United States received its first Venezuelan oil exports in four years. Meanwhile, a hastily built terminal in Germany accepted its first shipment of U.S. gas. The Ukraine war has reshaped the global energy map, forcing Moscow to look east as Europe increasingly refuses its exports, and Washington to revive troubled relations with Caracas. Still, this energy diplomacy may have a short shelf life. Given China’s rapid investment in renewable energy, and the years-long build time of new gas pipelines, it may be that Moscow’s investment doesn’t pay off for long. (Read more)
2023 January, 5th update
Declining sales in China hurt raw hides and skins exports from the U.S.. Between January and October 2022, packers, traders and tanners in the US exported 25.8 million hides, with a total value of just under $1.1 billion. These figures represent an overall decline of almost 13% in volume and of 8.3% in value compared to the same months last year. [Declines for US hide exports as China sales fall by 25% -Leatherbiz]. (Read more)
2022 December, 27th update
Nigeria has untapped potential for the leather sector. The global trade value of the leather and leather products industry is estimated at USD 407.92 billion per year as of 2021. Also, leather goods are ranked among the 25 most traded commodities in the world, according to UNIDO. Yet Nigeria is not a key player in the production of hide-based leather even though it produces skins and hides more than 45 million pieces annually, according to industry reports. [Leather And Leather Products A Game Changer For Forex …– eurasiareview.com]. (Read more)
2022 December, 16th update
Raw Hides export from New Zealand more than doubled in October, mainly thanks to Italian luxury customers. A growing number of Italian luxury leather products such as gloves, bags and car upholstery originate from New Zealand herds. The Meat Industry Association said that exports of cowhides to Italy in October increased by 110% compared to the same month last year. [Italian manufacturers buying more NZ skins and pelts – RNZ]. (Read more)
2022 December, 12th update
Shoes to be recycled become secondary raw materials. A second life for sports shoes. In Sommacampagna it will be possible to recycle shoes with rubber soles by throwing them in the 14 special binders located in different points of the Municipality: near schools, sports facilities and ecocenters. [ A Sommacampagna raccolta differenziata di scarpe … – L’Arena]. (Read more)
Shoes from secondary raw materials in Kisumu, Kenya. The high unemployment rate among college graduates has seen some resort to menial jobs while others have turned their passion into a source of income. Newton Owino, who graduated in tanning chemistry, used his knowledge in a company that recycles waste, for example fish skin, to produce shoes and other things. [Kisumu graduate generating income by recycling waste – capitalfm.co.ke]. (Read more)
2022 November, 26th update
U.S. Leather Industry Applauds Adoption of ‘Leather’ Definition by Textile Exchange. The Leather and Hide Council of America (LHCA), the trade body representing the U.S. hide, skin, and leather industry, applauds fashion industry standards and certification organization Textile Exchange for its recent adoption of an official definition of “leather” as a material created from the hide or skin of an animal. LHCA encourages other organizations and companies in the fashion and footwear sectors to follow suit in order to encourage increased transparency in materials labeling. [LHCA × Textile Exchange: Definition of “Leather” – 360mag]. (Read more)
2022 November, 18th update
Tamil Nadu Leader in the production of non-leather footwear. There are fewer than 50 non-leather shoe factories in Tamil Nadu, but they are expected to increase a lot with exports in six to seven years. V. Noushad, president of the Confederation of Indian Footwear Industries, told The Hindu that the T.N. It held only about 3% share in the global footwear export market, of which only 1% was non-leather footwear. Expectations are for a growth of 200%. [Footwear sector in T.N. poised for 200% growth – The Hindu]. (Read more)
2022 November, 3rd update
Global supply of energy and raw materials at risk due to drought. From California to Germany and China, climate change-fueled heatwaves and droughts have shrunk the rivers that power giant hydroelectric power plants, notes Bloomberg @markets. Heatwaves and drought left China’s Three Gorges Dam — the world’s largest power plant — running at a fraction of capacity this summer. It can produce enough electricity to power the Philippines, according to Bloomberg, but in August its turbines were almost silent. (Read more)
Bangladesh: the potential of non-leather footwear. As China moves away from synthetic products and moves closer to high-tech industries, Bangladesh’s footwear industry could fill much of the vacancy left in the leather substitute market, which was worth $84.1 billion in 2020, says the Financial Express. This market is expected to increase exponentially to $174.7 billion by the end of 2031. [Export potential of synthetic leather footwear thefinancialexpress]. (Read more)
2022 October, 28th update
Nanotechnology into the footwear. A new technology that incorporates flexible fiber sensors into shoes has been developed by the National Nanotechnology Research Center (UNAM) at Bilkent University and is able to identify a number of health issues, including Parkinson’s disease and gait disorders. [Turkish scientists develop ‘fiber sensor’ shoes for early diagnosis – dailysabah]. (Read more)
2022 October, 21st update
The Danish government fell because of the minks killing, but this disrupted the fur business and pushed many luxury brands towards synthetic materials. Mette Frederiksen, the Social Democratic prime minister, called the most Eurosceptic in the country’s history, has announced early elections to avoid a vote of no confidence by her left-wing allies. The reason for the vote: the killing of 15 million minks for health reasons at the beginning of the Covid-19 epidemic. Recently, a commission ruled that the decision was unconstitutional. [Mette Frederiksen: Jeg har begået fejl – men ikke om mink – LandbrugsAvisen]. (Read more)
2022 September, 13th update
Mexico, Footwear: they call on producers not to speculate on the price of leather. In the footwear industry, producers experience a recovery in production, the president of the CICEG calls on leather producers not to speculate on prices. [Industria del Calzado: Llaman a productores a no especular con el precio del cuero – am]. (Read more)
2022 September, 5th update
Raw materials: the prices of leather tanning are also increasing. A new Market Intelligence report has been published by @WTPworldleather. This report points out that the leather industry, as with most manufacturing sectors, faces sharp cost increases, mainly due to rising energy costs. [Market Intelligence: leather on the horns of a dilemma – leatherbiz.com]. (Read more)
2022 August, 25th update
The market of bio-based leather substitutes will grow more than both genuine leather and its synthetic substitutes. A study @Tmrresearch1 states that the market for bio/vegan-based leather substitutes has grown rapidly due to many factors. One of the main growth drivers includes an increasing trend for sustainable and cruelty free leather. In addition, a constant increase in the number of research and development activities for product development and innovation also stimulates growth prospects in the global market in the near future. [Download List Of Figures & Tables]. (Read more)
2022 August, 16th update
Bureau Veritas expands its certification capability of organic-vegan niche apparel and footwear. With the news of the acquisition of AMSfashion by Bureau Veritas, @juststyle addresses the issue of certification system strategies in global clothing and footwear supply chains, which seeks to expand especially in the “vegan” niche. [Bureau Veritas acquires AMSfashion to boost Europe presence – Just Style]. (Read more)
2022 August, 2nd update
Brazil: Inspiramais, the most important fashion innovation fair in Latin America. The event is at the heart of the creation and socialization of fashion trends in the region: innovation, design and sustainability, from leather goods and footwear supplies to fibers and textile supplies for Italy, Colombia, Portugal, Spain, United States, Peru, etc … in the reportage of @Fashion network [Inspiramais regresa al formato presencial y consolida a Brasil como el principal proveedor de la región – F]. (Read more)
2022 July, 27th update
Chinese car manufacturer Chery invests in Argentina: lithium batteries, electric cars, and leather interiors. Chery is a Chinese car manufacturer that has been operating in Argentina for over 10 years. Chery will start a tannery in La Rioja to produce the leather needed for his cars and a plant for the production of electric cars. But the Chery project is mainly part of the goal of industrialization of lithium: Argentina, Bolivia and Chile form the “Lithium Triangle”, with 67% of the reserves and 50% of the global supply.[Chery confirmó que planea instalar una fábrica de autos eléctricos en la Argentina – TN Autos]. (Read more)
2022 July, 15th update
Russia attempts to create a “too big to sanction” metals giant. The integration project between NorNickel and Rusal, in the hands of Vladimir Potanin, aims to create a “world leader in the metals necessary for the energy transition“. With aluminum, nickel, palladium, platinum etc … it would be too much the world’s dependence on Moscow on these materials to impose sanctions, according to @HuffPost. The narration of @IntelliNews. [Russian metal giants Rusal and Norilsk Nickel could merge under sanctions – bne IntelliNews]. (Read more)
2022 July, 7th update
In Kenya, policymakers are urged to support the textile and leather industry. There are numerous economic challenges that Kenya’s newly elected leaders will have to face decisively from 10 August 2022, four of which are listed by The Standard: strengthening local production, renewing the textile industry, addressing the persistent challenge of leather and implementing microfinance. (Read more)
2022 June, 8th update
A pair of sneakers in Argentina costs 50% more than in Brazil and Mexico, despite the protectionist regime. Data released by the Córdoba Stock Exchange show that protectionism on the textile-leather sector through import licenses reaches an average of 56% for the entire value chain and reaches 94% in clothing. However, despite state protectionism, Argentines continue to pay more for clothes and shoes than their peers in the region. [En Argentina se paga hasta 86% más por electros y 59% por vestimenta que en Brasil y México – Los Andes]. (Read more)
2022 May, 30th update
Automotive Interior Materials Market: Global Forecasts through 2026. The report is “Automotive Interior Materials Market… Global Forecast to 2026” by ResearchAndMarkets.com. The automotive interior materials market will reach $54.8 billion by 2026, at a CAGR of 2.6% compared to $48.1 billion in 2021. Improper disposal of effluents from the tanning industry is hampering the growth of the market in the genuine leather segment. (Read more)
2022 May, 18th update
New Kering achievements with non-leather obtained from the cultivation of animal cells instead of slaughter. Luxury giant Kering has joined forces with Vitrolabs in California on a project that is proving to be really promising. “Non-Leather” produced not from slaughtered cattle could be in production within the next year. [Kering backs cow-free, lab-grown leather. Game changer? – Vogue Business]. (Read more)
2022 May, 9th update
Leather Goods Market to Surpass USD 623.44 Billion by 2028 Witnessing Incremental CAGR of 5.90%. The Market Research Future’s (MRFR) report, “Leather Goods Market Information by Product Type, Distribution Channel and Region – Forecasts through 2028,” estimates a size of more than $623.44 billion by 2028 with a CAGR increase of more than 5.90%. However, the real leather market will become more and more contaminated, incorporating substitutes based on fabric, biological and synthetic materials. (Read more)
2022 May, 4th update
Leather chemicals industry to garner $11.0 billion by 2027. According to “the global leather chemicals industry” report, leather chemicals was worth $7.5 billion in 2019 and is estimated to reach $11.0 billion by 2027, recording a CAGR (Compound Annual Growth Rate) of 6.4% from 2020 to 2027. This is reported by the Digital Journal. (Read more)
2022 April, 27th update
Germany risks losing its leadership in industrial production in the ongoing crisis. This is especially true for hydrocarbons. According to the main German economic institutes (RWI, DWI, Ifo, IfW, IHW) without Russian gas and oil supplies the German economy would incur a “deep recession”. (Read more)
