Shoe and Footwear Manufacturing in the US Industry Market Research Report Now Available from IBISWorld

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US shoe manufacturers continue to feel the heat from imports. Shoe makers are increasingly offshoring their production to lower-cost countries, and cheap imports will satisfy a growing proportion of domestic demand. As a result, revenue will sink and firms will continue to exit. To stay afloat, operators will establish their presence in niche markets, including work-oriented or high-end shoes, where lower-quality imports cannot easily succeed. For these reasons, industry research firm IBISWorld has added a report on the Shoe and Footwear Manufacturing in the US industry to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

The financial crisis of recent years has decreased discretionary spending, hurting the industry

This industry has one foot in the grave. With manufacturers shifting operations overseas and cheap imports penetrating the US market, revenue for the Shoe and Footwear Manufacturing industry is expected to fall at an average annual rate of 1.2% over the five years to 2012. “Many companies have moved away from manufacturing footwear in the United States and are focusing on designing, wholesaling and marketing branded shoes,” says IBISWorld industry analyst Nikoleta Panteva. The credit and financial crises of the past few years have led to extremely low levels of consumer spending, negatively affecting sales of discretionary items like shoes. However, this struggling industry isn't likely to experience more double-digit drops; most large footwear manufacturers have already moved operations overseas, and the rate of growth in international outsourcing is expected to stabilize.

The number of companies in the industry has also declined; between 2007 and 2012, the number of enterprises is expected to fall from 1,027 to 770. Many new operators lack supply chain contracts with importers and are unable to send production offshore, which has caused them to lose out on margins. This decline has pushed some players out of the Shoe and Footwear Manufacturing industry because they were unable to sustain profitable operations. Meanwhile, well-recognized names like Nike have tightened their stronghold on the shoe supply chain. According to Panteva, while Nike accounts for a negligible portion of industry revenue, its brand recognition and effective cost controls have allowed it to remain at the forefront of the shoe sector.

Projected declines will be slower than the substantial drops that occurred at the start of this decade, as the industry will stabilize at a lower base. IBISWorld forecasts that revenue will decline over the five years to 2017, while imports will continue to infiltrate the industry. This trend will force participants out of the industry. The Shoe and Footwear Manufacturing industry in the United States has a low level of concentration, reflecting a largely fragmented market that has a mix of small players. Most large footwear companies manufacture nearly all of their products outside of the country. This practice has increased over the past few years as large manufacturers discontinue production in the United States, instead focusing domestic activities on design and wholesale of footwear. For more information, visit IBISWorld’s Shoe and Footwear Manufacturing in the US report in the US industry page.

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IBISWorld industry Report Key Topics

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 dress, street and work. These products also include men's or women's shoes with rubber or plastic soles and leather or vinyl uppers.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit or call 1-800-330-3772.


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Gavin Smith
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