Industry Analysis & Industry Trends
Early in the past five years, the US dollar was weak and contributed to industry revenue growth by making domestically produced goods relatively cheaper than imports. Nonetheless, low-cost suppliers in China and Vietnam can deliver leather boots at lower prices than local firms, making domestic goods less attractive to consumers. As a result, companies have shifted toward designing and marketing activities, while contracting production to third parties or opening up their own facilities abroad. More efficient production facilities will help companies compete based on price as import penetration and input costs rise over the coming years.... purchase to read more
Industry Report - Industry Investment Chapter
Operators within the Leather Boot Manufacturing industry incur significantly higher wage costs than capital expenses. A typical firm spends about $0.09 on capital investments for every dollar spent on labor. This ratio indicates that the industry has a low level of capital intensity.
Assembly of leather boots involves numerous manual steps 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 developing countries to save on labor costs and have kept the high-value design and marketing activities domestic. The typical process of producing shoes includes design, pattern-making, cutting and upper-making, lasting, bottoming and finishing... purchase to read more