Italy’s leather goods will shut down temporarily, due to the legislative decree passes by the government on March 22, 2020, considered to be “a necessary measure”. Assopellettieri’s CEO, Danny D’Alessandro, confirmed it, explaining that “this decision comes after some companies of the segment had already decided to close down autonomously. The challenge will be to understand the situation after the Coronavirus emergency is over. Because there is “a very high risk” that a number of tanneries will not come out of this situation well”.
Closing now is necessary
“We believe it necessary to close down now to go back to normal – explains D’Alessandro -. The main concern now is what will happen after: Japanese clients, for example, are in lockdown”. A good part of the manufacturing segment, the one not working for large brands, finds itself in a time of unforeseen crisis, reached after a period that “was already challenging. There isn’t any precise news, but many small and medium businesses are on the verge of a breakdown – he continues -. We need to understand what will happen after April 3rd, also because it sure won’t be enough to snap fingers and expect the market to go back to normal”.
Not all is lost
There is still time to save the situation. Asspellettieri is working on a document to present to the government: “The “Cure Italy” decree offers partial tools – says D’Alessandro -. Many companies will need an injection of both financial and fiscal kind: more liquidity, no taxes such as the sale tax, until market conditions won’t be restored to normal. Additionally, there needs to be a 60-month plan to go back to usual levels. Entrepreneurs need to dedicate all resources to their businesses”. Of course, the changes that will be implemented after April 3rd and on: “During this period. the last Spring-Summer shipments are being delivered – concludes D’Alessandro -, then starts manufacturing on Winter’s shipments, that should be delivered by June. We are 1 month late, but if the matter should go back to normal, then there is time to get all work back to schedule”.
“Scandicci’s leather manufacturers have closed in an organized manner – reported from Tuscany Simone Balducci, president of CNA Scandicci -. Many companies have already sanitized the spaces and were ready”. Balducci explains why orders left cannot be completed: “Shippers can only move materials that are considered necessities – he concludes – and so they no longer collect our goods: it’s useless to pay for deliveries”.