Leather & Allied Product Manufacturing
NAICS 316: Leather and allied product manufacturing including tanning, footwear, handbags, and Western boots in the US market.
Industry at a Glance
Sector-wide aggregates across all businesses classified under NAICS 316 (2017 classification frame). For specific sub-industries within this sector, see the individual reports below.
Industry Overview
Leather and allied product manufacturing (NAICS 316) covers tanning, finishing, and fabricating leather and leather-substitute products including footwear, handbags, luggage, belts, and industrial leather goods. US production has contracted sharply over four decades as manufacturing shifted to China, Vietnam, India, and Italy, leaving a domestic industry concentrated in niche premium goods and industrial applications rather than mass-market products.
The remaining US manufacturing base clusters in a few geographic pockets. Gloversville, New York retains its historical concentration of leather tanning and glove production. The boot and Western footwear segment centers in Texas, where companies like Justin Brands (a Berkshire Hathaway subsidiary) and Lucchese maintain domestic production. Coach (Tapestry Inc.) and other luxury brands retain some US finishing and quality-control operations while sourcing hides primarily from Midwestern cattle regions.
Environmental regulation heavily shapes tanning operations. The EPA regulates chromium discharge from tanning wastewater under the Clean Water Act, and tanneries must comply with Resource Conservation and Recovery Act (RCRA) requirements for hazardous waste from chrome-tanning processes. This regulatory burden has accelerated the shift toward vegetable-tanned and chrome-free alternatives, with the Leather Working Group (LWG) audit protocol emerging as the industry's primary environmental certification standard, now required by brands including Nike, Adidas, and major European luxury houses.
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Industry Trends
Leather Working Group (LWG) environmental audits have become the de facto supply chain requirement for global brands, pushing US tanneries to invest in water recycling, chrome recovery systems, and traceability documentation
Mycelium-based leather alternatives from companies like Bolt Threads (Mylo) and MycoWorks are entering luxury and athletic footwear supply chains, pressuring traditional leather on both sustainability and cost metrics
Western boot and heritage leather goods are experiencing a demand resurgence tied to cultural trends, benefiting Texas-based manufacturers like Lucchese and Tecovas that emphasize domestic craftsmanship
Automotive interior leather, sourced primarily from Midwestern hides and finished by firms like Eagle Ottawa (a Lear Corporation subsidiary), remains a stable industrial segment as EV manufacturers maintain premium leather options alongside synthetic alternatives
Traceability requirements driven by EU deforestation regulations (EUDR) are forcing US hide suppliers and tanneries to implement chain-of-custody systems linking finished leather back to specific ranches and feedlots
Specialty Reports Available on Request
Industry Groups
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Frequently Asked Questions
What is NAICS 316? ▾
NAICS 316 covers leather tanning and finishing, leather footwear manufacturing, and production of leather goods including handbags, luggage, belts, and industrial products. It also includes manufacturing of leather substitutes. The US industry has fewer than 1,000 establishments (Census CBP, 2023), concentrated in premium, Western footwear, and automotive interior segments after decades of offshoring.
Where is US leather manufacturing geographically concentrated? ▾
Gloversville, New York retains a cluster of tanning and leather-goods operations dating to the 19th century. Texas hosts the core of Western boot production, with companies like Lucchese in El Paso and Justin Brands in Fort Worth. Automotive leather finishing concentrates near Midwestern auto plants, with Eagle Ottawa (Lear Corporation) operating major facilities in Michigan.
How do EPA regulations affect leather tanning operations? ▾
The EPA regulates chromium-laden wastewater discharge from tanneries under Clean Water Act effluent guidelines, and chrome-tanning waste streams fall under RCRA hazardous waste requirements. Compliance costs for wastewater treatment and chrome recovery systems are substantial, which has driven both tannery closures and a shift toward vegetable-tanned and chrome-free production methods among surviving operations.
What is the Leather Working Group certification? ▾
The Leather Working Group (LWG) is an industry audit protocol that rates tanneries on environmental performance including water usage, energy consumption, chemical management, and waste treatment. Gold, Silver, and Bronze ratings are awarded. Major brands like Nike, Adidas, Kering, and LVMH require LWG certification from their leather suppliers, making it the primary market-access credential for tanneries worldwide.
How are leather alternatives affecting traditional manufacturers? ▾
Mycelium-based materials from Bolt Threads (Mylo) and MycoWorks, along with cactus leather (Desserto) and pineapple-fiber alternatives (Pinatex), are gaining adoption in luxury and athletic footwear. Stella McCartney and Hermes have launched products using mycelium leather. However, traditional leather retains advantages in durability, aging characteristics, and consumer perception for premium segments like Western boots and automotive interiors.
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