The pandemic’s effects weighed on the partial results of 2020 for Italy’s leather segment. In other words, the first 9 months of the year show the inevitable losses in terms of production and export. Negative values that, as stated during the December’s assembly of UNIC – Italian Tanneries, show how the segment “showcases its livelihood and reactivity. By putting in place actions that aim at improving service and answer clients’ needs”.
The first 9 months for Italian leather
“Italy’s tanning segment estimates to have lost about 28% of its seasonal revenue during the first 9 months of 2020”, reads a note written by UNIC’s Economic Services. The downturn is equal to a 22% decrease in production volumes. “Such decreases – continues UNIC – are paralleled by the variation of export value of hides tanned in Italy, as the loss was of about 29%”.
For the third quarter, specifically, “the negative results for the average revenue of tanneries aren’t surprising”. The situation reduced to the minimum “the number of comments relating to the market situation, which appears to have been heavily impacted by the Covid-19 consequences”. All considering “the substantial uniformity with which the decrements have been recorded in all the main manufacturing countries”, as they all show a “double-digit decrement both for the last quarter and the first 9 months”.
Given that, among all segments, the upholstery one has showed “encouraging signs” during the 2nd half of the year (which we discuss in the latest monthly number of La Conceria), the rest of the market remains bleak. Moreover, trying to create forecasts means entering a minefield. “We will close 2020 – said the new president of UNIC, Fabrizio Nuti, in December – with a downturn characterized by losses of between 25% and 35%- I believe the first quarter of 2021 will continue to suffer from the pandemic’s effects”.