Footwear Manufacturing

Brief Excerpt from Industry Overview Chapter:

The US footwear manufacturing industry consists of about 230 manufacturers with sales of about $2 billion. The major shoe companies in the US, including NIKE, Skechers USA, and Timberland, are mainly owners of brand names that "source" their shoes from independent manufacturers outside the US. Some US manufacturers, like New Balance, make a percentage of their shoes in the US while other smaller operations manufacture all their shoes in the US.

The global footwear market generates about $85 billion in export revenue, according to the International Trade Centre. The largest footwear producing countries in terms of export revenue are China, Italy, Vietnam, and Germany. Major companies include Adidas (Germany), Puma (Germany), Asics (Japan), and Yue Yuen (China), a subsidiary of Pou Chen (Taiwan).

Footwear retailers are covered in the Shoe Stores industry profile.

COMPETITIVE LANDSCAPE

Demand is driven by fashion and demographics. The profitability of individual companies depends on their ability to design and market attractive shoe models. Big companies have economies of scale in distribution and marketing. Small companies can compete successfully through superior design or marketing.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major product segments are men's, women's, and athletic shoes. Men's footwear made in the US accounts for about 56 percent of sales, women's 10 percent, and athletic about 5 percent. Major export markets for US footwear include Canada, Mexico, Japan, Korea, and the United Arab Emirates.

About 99 percent of all footwear sold in the US is imported, according to...