NAICS separates tanning (31611) from leather goods manufacturing because they represent distinct production activities with different input materials, capital requirements, and competitive dynamics. Tanneries process raw hides using chemical processes, while fabricators cut and assemble finished leather into articles — each stage faces different import competition and trade policy exposure.

Domestic tanneries depend on hides as a byproduct of beef processing, so US cattle slaughter volumes directly influence hide supply and pricing. When domestic hide availability tightens, tanneries may increase imports of raw or wet-blue hides, shifting their sourcing strategy and affecting the trade balance in Chapter 41 products.