Trend to District Of Arzignano and the chimeras of the low costsin foreign markets

How is the tanning district of Arzignano doing? According to a recent interview conducted by the magazine “MDP La Conceria” (No. 06 of 2014) to Leonello Guidetti, director of the Banca Popolare di Verona (Banco Popolare group), the crisis that struck in 2008 resulted in a rationalization of the sector and reduced the operators thereby keeping the ones financially more structured. The market has rewarded those who turned to export and have approached it with determination and competence. Obviously, the profit margins for the operators have shrunk as a result of the increased hide supply costs that created difficulties, especially as long as they have not been shifted in the price lists. Today, reduced margins endure more than in the past but now companies are stronger and better organized, especially those that have turned significantly to foreign markets.
Our reflection on the foreign market: “Although the foreign market has become of particular importance, this applies exclusively from the point of view of the target markets – highlights Danilo Marchetto – it is somewhat difficult if not impossible to think of a productive outsourcing”. The widespread knowledge of tanning techniques and skills such as those found in the leather district of Arzignano makes the attraction exerted by the low production, labour and system costs, which can be found in some countries, of little interest. “In a highly specialized sector like that of the district, solving a production problem or meeting the increasingly complex needs of our clients, is easier, and priceless.” Truth be said, the competitive advantages given by a widespread know-how make it inconvenient to move to other countries with the chimeras of lower costs. Even more now that the development of new technologies, which are more and more environmentally friendly, and the research on productive improvements and energy savings are playing a key role in the global competition.