Industry Analysis & Industry Trends
Shoe & Footwear Manufacturing Industry revenue has increased every year since 2010 and is expected to continue growing in 2014. The industry's recovery was aided by improving downstream demand, a slowdown in import penetration into the manufacturing sector and significant decreases in the price of rubber, which rose a staggeringly in 2011. Over this period, a tremendous increase in exports spurred revenue growth. New legislation is being proposed that could possibly benefit the industry greatly. IBISWorld expects industry revenue to decline over the five years to 2019. The increasing value of imports and a significant decrease in exports in the latter part of the five-year period will fuel this decline... purchase to read more
Industry Report - Industry Investment Chapter
Shoe manufacturers operating within this industry spend about $0.03 on capital for every $1.00 they spend on labor. This ratio indicates that the industry has a low level of capital intensity. The ratio has declined over the past five years; while operators have cut labor costs, they have also severely limited investments in capital as industry revenue has remained unpredictable.
There are many manual steps involved in the assembly process of shoes and, as such, the current level of technological innovation will not alter this significantly. Instead, many manufacturers have chosen to outsource production processes to low-cost Asian countries in order to save on labor costs and have kept the high-value design and marketing activities domestic... purchase to read more