87% fall in footwear production in Guanajuato, Mexico
Economic uncertainty and fear of the pandemic are factors that are strongly impacting the footwear industry in Mexico, mainly in the state of greatest production that is Guanajuato.
The city of León and its region concentrate a large part of the sector chain, which is made up of a diversity of factories, where SMEs and small workshops predominate, characterized by a high percentage of informality.
Since June 1, when the industry tries to return to activity, under strict protocols, it is estimated that only 60% of factories restarted their work, with 40% of their operating capacity.
From the Guanajuato Chamber of Footwear –CICEG- it is estimated that the fall in production is 87%, with a loss of 12 thousand jobs, not counting the informal segment.
In the first 10 days of June, 25 shoe companies announced their definitive closure, while versions are circulating that other major industries would choose a similar decision.
The situation is exacerbated by the sharp drop in consumption, although many stores open their doors to achieve sales that allow them to survive.
In this context of extreme need, CICEG leaders reported abuse and malpractice by suppliers and buyers. That are expressed in the delay and cancellation of orders; price increases for materials and components; discount request; merchandise return; shopping offers with excessively low prices, etc.
On June 12, in their desperation to sell, merchants from the Skin Zone, the emblematic place of León for footwear and leather goods, opened the doors of their premises, without taking any type of health prevention with the slogan that the Covid-19 "It is a government invention".
Immediately municipal authorities carved out the corresponding infractions, in a high-tension environment for claims and protests.
Prepared by PROSPECTA, the Center for Innovation and Competitiveness of León, the main aspects that influence the recovery of the sector were identified.
