Mexico’s footwear and leather are pessimistic: revenues -50%, production -80%

Mexico’s footwear and leather are pessimistic: revenues -50%, production -80%

Mexico’s footwear and leather industries are rather pessimistic. In fact, due to the pandemic, caused by Coronavirus outbreak, almost the whole of Mexico’s footwear manufacturing companies are currently facing a downturn in revenues. Earnings have gone considerably down, -50%, for many of them. The same applies to leather tanning enterprises, which have been shut for more than a month.

Mexican footwear limps along

Data mentioned above are provided by a survey carried out by CICEG (Cámara de la Industria del Calzado del Estado de Guanajuato), an association promoting Mexico’s footwear and leather goods industry. As reported by elsoldeleon.com.mx, during a press conference held on Monday, 4th May 2020, executive president Alejandro Gómez Tamez laid out the situation: 99% of manufacturing companies are currently dealing with a downturn in revenues. While comparing April 2019 to April 2020 turnover, for 8 businesses out of 10 earnings have been dropping down by 50%. Consequences

Shoe factories most affected by downturn in sales have made clear they will be compelled to cut down their own work staff. 60% of them will have to reconsider their sale goals; just 8% of them expect sales to increase. 83% of enterprises have been facing a number of order cancellations and, subsequently, 81% of them have suspended their activity. 35% of businesses still do not know when they are going to reopen factories. Conversely, 24% of them will supposedly start working again in June. Yet, for the time being, no plant is running at full speed. 48% of factories claim they will be able to hold up for 16 to 30 days.

Leather tanning companies

Drums stopped running more than a month ago. At present, only 20% of tanneries have reopened and are working again. According to estimates, provided by professionals, overall manufacturing has decreased by 80%. The crisis has been most affecting tanneries located in the district of León: here, in fact, they process 85% of hides and skins coming out of Mexican tanneries every day.

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