Establishments in the Leather and Allied Product Manufacturing subsector transform hides into leather by tanning or curing and fabricating the leather into products for final consumption. It also includes the manufacture of similar products from other materials, including products (except apparel) made from "leather substitutes," such as rubber, plastics, or textiles. Rubber footwear, textile luggage, and plastics purses or wallets are examples of "leather substitute" products included in this group. The products made from leather substitutes are included in this subsector because they are made in similar ways leather products are made (e.g., luggage). They are made in the same establishments, so it is not practical to separate them.
The inclusion of leather making in this subsector is partly because leather tanning is a relatively small industry that has few close neighbors as a production process, partly because leather is an input to some of the other products classified in this subsector and partly for historical reasons.
The Leather and Allied Product Manufacturing industry (NAICS 316) has been witnessing several notable trends and shifts. One key trend is the increasing demand for sustainable and ethically sourced products. As consumers become more environmentally conscious, leather manufacturers are innovating with eco-friendly processes, such as using plant-based tanning and reducing chemical use in production. Furthermore, there's a growing emphasis on transparency within the supply chain, with companies actively promoting their sustainable practices and sourcing methods.
Another trend is the integration of advanced technologies. The rise of automation and the use of AI in designing and manufacturing processes are helping companies to enhance efficiency and meet custom demands swiftly. This shift helps in reducing costs and improving product quality, aligning well with the increasing consumer demand for high-quality, bespoke products.
The industry is also seeing a resurgence of interest in high-quality craftsmanship and handmade products. This is partly driven by a consumer backlash against fast fashion and a preference for items with unique character and longevity. As such, brands focusing on artisanal leather goods are gaining market traction.
Looking to the near future, demand for leather products is expected to remain stable, with a slight increase driven by emerging markets. However, companies will need to continue innovating in sustainable practices and technology adoption to maintain competitiveness. Market forecasts suggest that businesses which can effectively combine craftsmanship with sustainability and technological advancement will likely experience the most significant growth.
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