Footwear Manufacturing Industry Profile

The US footwear manufacturing industry consists of about 250 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 large US producers, like New Balance, make a substantial share of their shoes in the US; some 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), Reebok (UK), Puma (Germany), Asics (Japan), and Yue Yuen (China), a subsidiary of Pou Chen (Taiwan).

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. The industry is labor-intensive: annual revenue per employee is about $135,000.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major product segments are men's, women's, and athletic shoes. Men's footwear accounts for about 50 percent of sales, women's 20 percent, and athletic/other about 30 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 ...