Manufacturing Footwear Industry

The Ongoing Financial Crisis has Created Hardship While Providing Possibilities

For the U.S. Footwear Manufacturing Industry

Jane Doe

February 12, 2012

Summary of Analysis

The economic recession has forced many of the US Footwear Manufacturing companies to either exit or restructure. Sharp decline in demand and dishearten consumers has led to negatively affecting sales of discretionary items, such as footwear, to be sold. Inexpensive imports are penetrating the US markets and they will continue to infiltrate the industry, satisfying the majority of domestic demand. Most US Footwear Manufacturers have already moved operations offshore, and those that have not are either closing or quickly shifting their operations overseas. Outsourcing as a means of cutting-costs has become a popular trend among the US Footwear Manufacturing Industry. As a result of their inability to sustain profitable operations, many US companies have been forced out of footwear manufacturing; focusing instead on designing, wholesaling, and marketing footwear.

Key STEEP Variables of the Footwear Manufacturing Industry |

Social | Technological | Ecological | Economic | Political/Legal |

Changing fashion trends | Internet technology | Water scarcity | Seasonal conditions | NAFTA’s reduced trade barriers |

Woman trends constantly changing | Design and product development | Recycling of material waste | Raw material costs | Tariffs and quotas |

Advertising budgets increasing | Technological advancements | Carbon footprint | Changes in duties imposed | US patent and trademarks |

Brand name recognition essential | Research and development | Transparency of materials used | Exchange rates | Occupational and safety regulations |

Men trends relatively stable | Cheaper imports increase capital expenditures | Focus on more environmentally friendly material | Decrease in discretionary items | Penalties on infringements |

Socially responsible consumers | New tag less...