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 Analysis Chapter
The Leather Boot Manufacturing industry has benefited from rising funding for defense and improving consumer sentiment. Federal funding for defense grew 1.5% annually on average since 2008, contributing to industry success through contracts for combat boots. Meanwhile, a 6.0% annualized increase in consumer sentiment led some Americans to buy domestically produced boots despite an influx of cheaper imports.
Consequently, IBISWorld estimates that revenue grew 0.6% annually on average during the five years to 2013.
In 2013, however, federal funding for defense is projected to dwindle as the government struggles to balance its budget. Also, the US dollar is forecast to strengthen and further boost the affordability of imported leather boots... purchase to read more