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Shoe and Footwear Manufacturing in the US Industry Market Research Report Now Available from IBISWorld
Date:5/5/2013

Los Angeles, CA (PRWEB) May 05, 2013

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 has fallen at an average annual rate of 1.4% over the five years to 2013. According to IBISWorld industry analyst Nikoleta Panteva, “Many companies have moved away from manufacturing footwear in the United States and are focusing on designing, wholesaling and marketing branded shoes.” 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. This struggling industry is not likely to experience more double-digit drops, though; most large footwear manufacturers have already moved operations overseas, and the rate of growth in international outsourcing is expected to stabilize. In fact, industry revenue is expected to inch up in 2013 to $2.0 billion, boosted by growth in downstream demand from wholesalers and retailers.

The number of companies in the Shoe and Footwear Manufacturing industry has also declined; from 2008 to 2013, the number of enterprises fell from 890 to an estimated 798. “Many new operators lack supply chain contracts with importers and are unable to send production offshore,” explains Panteva, “which has caused them to lose out on margins.” This decline has pushed some players out of the industry because they were unable to sustain profitable operations.

Meanwhile, well-recognized names like Nike have tightened their stronghold o
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