Developments in leather industry
LEATHER is one of the most prospective industries in Bangladesh. It has enough scope for both vertical and horizontal expansion in terms of economic return and social benefits. Leather making is capital-intensive, with labour costs in the region of 10 percent to 15 percent. A tanner has limited opportunities to isolate any high labour cost and shift it to a low-cost area. European and North American tanners and manufactures have introduced computerisation and robotics to reduce the labour input, rationalise selection and production control, and improve effluent quality and discharge volumes.
In Bangladesh, the manufacturing of wet blue, the chrome tanned semi-processed leather, was featured in 1965. Out of 35 medium to large tanneries, 30 partly mechanised units were owned by non-Bangalees.
With the emergence of Bangladesh, the experienced non-Bangalee tanners abandoned their plants, and a vacuum was created in the leather industry. Despite such a situation, the resilient Bangalees have been able to advance fairly well in the sector during the last three decades.
The major problems affecting the Bangladesh leather industry are:
-Inadequate grading of raw hides and skin, collection and curing facilities, and raw stock supply;
-Difficulties in obtaining quick advice on chemical formulas, applications and techniques;
-Lack of R & D facilities, inadequate supply of trained technologists and laboratories for physical and chemical testing; and
-Uncertainties in government strategies, bureaucratic delays and disposal of effluent.
High-grade goatskin and bovine hides provide an excellent base for developing the leather industry.
In addition to existing governmental aid, new measures that need to be adopted for the sector are:
-Providing special training for the high-profile technologists;
-Declaring a long-term policy (covering at least 10 years) for the industry to allow its development without uncertainty;
-Facilitating rapid delivery and providing special facilities to the export of high-value leather and its products.
There are some extreme opinions about the future utilisation of natural leather. Some scientists and economists think that raw hides and skins, which have plenty of protein and, thus, are badly needed in the world for food, are too luxurious to use for footwear. Their share in leather products will, therefore, be minor. For opposing experts, hides and skins will remain relatively cheap by-products. They see the tannery industry as the only economic user that has developed very tolerant processing methods at a fairly sophisticated technical level. They forecast a slight increase in leather utilisation for footwear uppers and leather governments.
As indicated earlier, the leather industry has a very bright future in Bangladesh. What is important for Bangladesh is adopting measures to remove post-mortem defects due to inadequate healthcare and improper handling of materials during and after flaying. Furthermore, the Bangladesh government may consider encouraging tanners to computerise and use robotics in their factories to reduce labour input, and even amortise their micro-electronic equipment to significantly reduce processing costs.
Computerisation helps in rationalising selection and production control. It also improves effluent quality and discharge volumes to obtain control over quality and performance specifications, to monitor inputs and machine performance, to reduce wastage, to stabilise production and above all, to give the basic properties that the manufacturer regards as essential, uniformity within and across the piece, from piece to piece, from batch to batch, and even from tanner to tanner, as well as conformity wih specifications and standards.
Leather and its products are major export items for Bangladesh. Due to the global recession, our exports earnings have fallen during the last quarter. However, indications are seen that we shall recover from this slump within a short time.
We should bear in mind that our people are unhappy about the concentration of the leather industry in Hazaribag, and the poor disposal of effluent from the industry, which creates serious environmental hazards. The government must be up and doing to shift the leather factories from Dhaka residential areas at the earliest. Along with the leather industry, the government may try for a rapid improvement in a leather substitute industry because of the high price of natural leather and rapid urbanisation.
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