The Tannery is a Tier 1 resource production building, taking
Pelts and
Water as an input for the production of
Hide Coats. While most villagers will arrive to the settlement with a Hide Coat equipped, these items wear out over time and Villagers born to the settlement will need Hide Coats as well.
Villagers with Hide Coats have reduced chance of contracting Maladies following attacks from wildlife and raiders, which is incredibly vital in early game when the population of a settlement is limited and every able-bodied adult is of tremendous value.
Basic Strategy
Tanneries have a negative desirability, meaning they should be kept away from residential districts. Given requirements for Pelts and Water, placement near Hunter Cabins (or storage location with pelts) and Wells is recommended.