Stepping down: Operators will continue to struggle to compete with their overseas counterparts

The Shoe and Footwear Manufacturing industry has contracted over the five years to 2017. Despite improving downstream demand conditions, the industry has suffered from increasingly high import penetration and falling exports. In response to rising price-based competition, domestic footwear companies have continued to offshore production, effectively exiting the industry. However, remaining industry operators have specialized in the production of premium footwear products. As a result, industry profitability is anticipated to rise slightly during the period. Over the next five years, a potential tariff hike and a potential expansion of the Berry Amendment could positively impact industry revenue...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 12-17
-3.6%
Forecast Growth 17-22
Profit
Employment
12,218
Businesses
919
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Industry Threats & Opportunities

  • Despite improving downstream demand conditions, the industry has suffered from increasingly high import penetration
  • Industry employment has been threatened by intense outsourcing
  • Producers will likely seek out new sources of low-cost labor in untapped overseas locations
  • Industry Report - Industry Analysis Chapter

    The Shoe and Footwear Manufacturing industry’s decline is not unique to the current five-year period. During the period, operators have continued the historic practice of offshoring much of their production activity to developing countries, such as China, Vietnam and Indonesia, to reduce labor costs and, therefore, offer more competitively priced footwear. Consequently, imports currently account for an estimated 95.1% of domestic demand for footwear. This operational restructuring has proved to be highly determinantal to the industry...purchase to read more.

    Additional Insights for the Shoe & Footwear Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Shoe & Footwear Manufacturing Industry are

  • Establishment of brand names
  • Economies of scope
  • Ability to alter goods and services produced in favor of market conditions
  • IBISWorld analysts also discuss how external factors such as Import penetration into the manufacturing sector and Trade-weighted index in the Shoe & Footwear Manufacturing industry impact industry performance..

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    What is the Shoe & Footwear Manufacturing Industry?

    This industry manufactures footwear for men, women and children. They may manufacture rubber and plastic footwear, protective footwear, house slippers and slipper socks. Operators also manufacture men’s or women’s footwear designed for casual, formal and work environments. These products also include men’s or women’s shoes with rubber or plastic soles and leather or vinyl uppers.

    Industry Products
  • Men's footwear (except athletic)
  • Rubber and plastic footwear including athletic footwear
  • Women's footwear (except athletic)
  • Other footwear
  • Industry Activities
  • Rubber and plastic footwear
  • House slipper
  • Athletic shoes
  • Ballet slipper
  • Cleated athletic shoes
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Import penetration into the manufacturing sector
  • Trade-weighted index
  • Per capita disposable income
  • Demand from footwear wholesaling

  • Current Performance
  • Import penetration and profitability
  • Industry employment
  • Bad news for exports
  • Chart: Revenue Growth

  • Industry Outlook
  • Potential effects of increased protectionism
  • Potential effects of the Berry Amendment
  • Table: Shoe & Footwear Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Shoe & Footwear Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Footwear Wholesaling
  • Shoe Stores
  • Sporting Goods Stores
  • Department Stores
  • Warehouse Clubs & Supercenters

  • Key Selling Industries
  • Cardboard Box & Container Manufacturing
  • Leather Tanning & Finishing
  • Plastic Products Miscellaneous Manufacturing
  • Rubber Product Manufacturing
  • Synthetic Fiber Manufacturing

  • Products & Services
  • Men's footwear (except athletic)
  • Rubber and plastic footwear including athletic footwear
  • Women's footwear (except athletic)
  • Other footwear
  • Chart: Shoe & Footwear Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Footwear wholesalers
  • Footwear retailers
  • Exports
  • Manufacturers' sales outlets
  • Chart: Major Market Segmentation for the Shoe & Footwear Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages and depreciation
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Shoe & Footwear Manufacturing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Shoe & Footwear Manufacturing Industry

  • Industry Globalization
    New BalanceAllen Edmonds Corp.
  • Table: New Balance - financial performance
  • Table: Allen Edmonds Corp. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Shoe & Footwear Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Shoe & Footwear Manufacturing Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • trade-weighted index (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    North American Free Trade Agreement (Nafta)
  • A generally duty-free agreement signed by the governments of Canada, Mexico and the United States, creating a trilateral trade bloc in North America.
  • Offshoring
  • The transfer of manufacturing operations to another country, regardless of whether the work is outsourced or stays within the same corporation or company.
  • Outsourcing
  • Subcontracting process where manufacturing is conducted by a third party company either locally or internationally.
  • Why buy this report?

    The Shoe & Footwear Manufacturing industry market report contains strategic analysis of the key drivers influencing the industry. Save hours of time on research and prospecting using IBISWorld’s standardized, up-to-date reports on thousands of industries. Our industry research provides growth and profit forecasts for a five-year outlook period, presented in a clear and user-friendly format.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Shoe & Footwear Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Shoe & Footwear Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Shoe & Footwear Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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