The jewelry industry is booming in the US, and the industry is thriving in the UK.
That’s the view of a pair of British researchers, who say the industry has been on a steady, upward trend since the financial crisis, despite a steep drop in global demand.
But as the U.K. government has slashed tax breaks for the industry and slashed subsidies for many of the big names, and demand has been weak, there’s been a marked slowdown in the industry’s growth.
That has left some of the smaller, mid-sized companies that make jewelry out of gems and precious metals in limbo.
Some of them have been struggling to make ends meet, and some of them are losing money, says Mark Linton, an analyst at IHS Markit.
“In the UK, for example, there is a very strong trend for smaller and mid-size manufacturers to fail.
The trend is quite clear: they are going to fail, and they are not going to recover,” Linton told Business Insider in an interview.
Linton says jewelry makers have a lot of work ahead of them.
“We are very concerned about the prospects for small, mid, and large jewelers and we are seeing a lot more of those companies fail, as we see with the diamond sector,” he said.
He says this is partly because some of these companies, such as London-based Lorna, are struggling with the loss of their retail business.
Lornas sister company, the British-based Gemma Jewelry Group, has already filed for bankruptcy protection in the U