Footwear Manufacture, Wholesale, and Retail Industry Profile

The US footwear industry consists of about 100 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.

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.

More than 95 percent of all footwear sold in the US is imported, according to the American Apparel and Footwear Association. Domestic manufacture of shoes has been rapidly declining for several decades. The remaining US shoe manufacturers are typically small, with annual revenue of $10 million and fewer than 100 employees. US-made products are mostly expensive, private-label men's shoes

Materials, mainly leather, amount to 50 percent of costs. Shoe manufacture has moved to low-cost countries like China because of the large labor content in the manufacturing process, especially for ...