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6 July 2020

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