Bangladesh Leather Sector Essays
ASSISTING THE DEVELOPMENT OF THE LEATHER PRODUCTS SECTOR
Despite the recent global recession, the performance of Bangladesh Leather Sector has been very promising in FY2010 ending the year as the third largest export revenue earner for Bangladesh behind RMG including home textiles and Jute and Jute products. The sector achieved growth in all three sub-sectors: tannery, leather goods, and footwear. This financial year, the sector earned $460 million (US$ 381 millions in FY2009), including crust and finished leather (about $226 million), footwear ($205 million), and other leather products (about $29 million). Higher value footwear and goods (51 percent) has exceeded leather (49 percent).
The annual domestic supply of hides and skins is around 200 million square feet, of which 20 percent is consumed locally and 80 percents exported to more than 50 countries in the form of semi-finished & finished leather, and footwear, handbags, accessories, and other leather goods. The principal raw materials for this sector are cowhides (64 percent) and goatskins (33 percent), which are mainly processed in local tanneries.
The industry includes 2,000 to 2,500 SMEs but a handful of large companies control more than 90 percent of the export market. Most of the enterprises are located in Dhaka, followed by Chittagong. The sector generates direct and indirect employment for about 700,000 people, including a significant number of women, particularly in the footwear and leather goods industries.
During the last year, it shows that investment in the sector, particularly, footwear, were increasing. Many local companies expanded while concurrently there was direct investment from new ventures.
One of the major concerns of the expanding market however is the shortage of skilled workers and floor supervisors. This shortage will become even more severe when these new ventures will be operational.
The leather sector is dominated by MSMEs. But their growth is restricted from all
Despite the recent global recession, the performance of Bangladesh Leather Sector has been very promising in FY2010 ending the year as the third largest export revenue earner for Bangladesh behind RMG including home textiles and Jute and Jute products. The sector achieved growth in all three sub-sectors: tannery, leather goods, and footwear. This financial year, the sector earned $460 million (US$ 381 millions in FY2009), including crust and finished leather (about $226 million), footwear ($205 million), and other leather products (about $29 million). Higher value footwear and goods (51 percent) has exceeded leather (49 percent).
The annual domestic supply of hides and skins is around 200 million square feet, of which 20 percent is consumed locally and 80 percents exported to more than 50 countries in the form of semi-finished & finished leather, and footwear, handbags, accessories, and other leather goods. The principal raw materials for this sector are cowhides (64 percent) and goatskins (33 percent), which are mainly processed in local tanneries.
The industry includes 2,000 to 2,500 SMEs but a handful of large companies control more than 90 percent of the export market. Most of the enterprises are located in Dhaka, followed by Chittagong. The sector generates direct and indirect employment for about 700,000 people, including a significant number of women, particularly in the footwear and leather goods industries.
During the last year, it shows that investment in the sector, particularly, footwear, were increasing. Many local companies expanded while concurrently there was direct investment from new ventures.
One of the major concerns of the expanding market however is the shortage of skilled workers and floor supervisors. This shortage will become even more severe when these new ventures will be operational.
The leather sector is dominated by MSMEs. But their growth is restricted from all