LWG Covid-19 Impacts Survey Results

In an effort to ensure our group continues to respond to our members’ concerns, we issued a survey on industry-wide impacts of the Covid-19 outbreak in April 2020. Over the four-week response period, we received input from 229 LWG Member Companies, representing almost 30% of the total membership. The breakdown of responses is as below: 

• 149 Leather Manufacturers 

• 33 Suppliers 

• 25 Traders 

• 22 Brands/Retailers 

Impacts & Recovery 

95% of respondents reported a moderate to severe impact on business operations, including a majority advising that their order volumes have decreased by over 30%. On average, members reported they expect to be able to return to 80% of their pre-coronavirus production levels within 18 months. 

Biggest Challenges 

Given the widespread global impact of the Covid-19 outbreak, the leather manufacturing industry reported a range of different challenges that will need to be addressed in the future, including: 

• Recovering lost sales 

• Maintaining cash flow through the business 

• Changes in consumer spending and habits 

• Ensuring the health and safety of the workforce 

• Developing new products for a new marketplace 

• Increased cost of materials and shipping 

What Our Members Want 

As a membership organisation, it is important to us that we take our members’ needs into account when planning for the future. Respondents to the Covid-19 Impacts Survey suggested the following actions: 

• Provide updates on the global business situation within the leather industry 

• Extending audit certifications for leather manufacturers 

• Promoting LWG to a wider audience 

• Offering online meetings and training webinars in lieu of physical meetings. 

In response to these results, we issued a 12-month extension to all leather manufacturers holding a valid certificate of membership on 18th May 2020. 

Category: News