The lockdown order, or mandatory shutdown of operations, still hadn’t arrived. But CRV is causing stress for both Germany and Sweden. Operators in both countries are having issues relating to their national and international supply chain partners. Local governments are undecisive, as shown by the difficulties in providing tools to assist with employees and business continuity.
Germany and Sweden under pressure from the pandemic
News sources report that German tanneries have managed to operate somewhat regularly until now. While personnel are remaining at home with government financial support (worth between 60% and 75% of their normal salaries), companies are having difficulties shipping internationally. Even within the European community, individual countries are adopting measures that slow commerce down. The delivery of material suffers from the general slowdown of the livestock industry, caused by the shutdown of the hospitality industry. The tanning segment is particularly concerned that the German national government won’t recognize the segment as “essential”. Up until now, the entity hasn’t provided a list of businesses that are authorized to remain open, but only a vague definition based on industrial necessities. How the leather segment will be classified is still unknown.
Swedish tanneries have also not been forced to close temporarily. Yet, the flat market has benefitted businesses and workers, thanks to the tools put in place by the local government. According to what reported, the government has guaranteed credit lines for SMBs, while pushing fiscal deadlines to later dates. Moreover, employees can count on the government to provide a substitute stipend while the company isn’t paying them.
Image taken from bader-leather.com