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Finally, I'm unsure which shoe companies want to deal with all this and bring manufacturing back to America. Can you cite something here?
I have friends in the industry. One is a material engineer at Nike (not saying Nike is going in this direction but he knows a lot about outsourcing labor and how it moves on from country to country).
the other looks at ways of making manufacturing more socially and ecologically sound (puffing magic fairy dust basically). he did work for Keen and now he's an independent contractor. He knows a shit tonne but I generally tune out when he starts talking about this stuff... i'll get his take on it when we go surfing next.
Companies like Keen and New Balance already have made in US and UK options. spendy and low volume but its in place.
If you can ask your friend for any public statistics to support these stories that'd be great. Or even articles in industry magazines.
As for New Balance's puffery about being made in America, well it is great marketing. New Balance makes 16 million pairs of shoes each year, but only 4 million are labeled "Made in America." And, even these "made in America" shoes require pieces from abroad.
I wasn't planning on getting that deep and perhaps should have been clearer. My only anecdotal point was, from what I hear companies are indeed having increasing conversations around what it means to brings manufacturing back to the USA. I won't be getting into stats and numbers for you sorry... haha. I work with getting young humans into housing... that's the only data I will bog myself down with... will report back how a 2nd Trump term impacts homelessness...
I’ve had some exposure to Keen’s made in USA manufacturing. I’d call it more “assembled in the USA”. I’m not privy to their material sourcing, but it appeared that outsoles still came from their overseas factories and leather and other materials from various sources. I’ll assume that tariffs will apply to some of those pieces.
Yes. Very true. "Assembled in US" is more accurate. Funnily enough he just sent me some info on the chemical and material break down of shoes. According to him a "typical pair of shoes has 50+ components coming from dozens of material suppliers, who in turn work with dozens of sub suppliers." All from SE Asia...
So yeah, even if assembled in the US, its fucked...
^I remembered Oakley puts "Assembled in USA" on their glasses instead of "Made in USA" because all their parts come from overseas, and then their assembly line in the US puts them together. Don't think you're allowed to write "made in USA" unless the parts come from here too.
As for footwear coming to the US, i can't see that happening anytime soon. A majority of skate footwear comes from asia - specifically Vietnam and China. The cost to make shoes over there can range from roughly $8-$20 per shoe for your fairly simple cupsoles and vulc skate shoes. It's impossible to meet this pricing if you are to source the footwear from the US. Granted, this is also before tariff prices and shipping costs are applied to the shoes. Let me break down how this works for you:
Lets say a shoe costs $15 for a brand to produce. If it is coming from china, that adds a 10% tariff rate just for coming out of China. Then your additional tariff will depend on the type of shoe. If it is made out of mostly Suede/Leather, it falls under the classification of 'animal hyde' footwear - that adds another roughly 8% tariff rate. If the shoe is made out of mostly canvas or synthetics, you're paying an even higher rate. Lets also say you're paying $2/shoe for every shoe you ship into the US via a cargo ship (cheapest option). Now the shoe company is paying an additional $4.70 on top of the price of shoe for tariffs and freight prices. This shoe now costs shoe company a total of $19.70 per unit. Shoe company will now charge double for wholesale accounts at roughly $40/shoe. This price doubled again at the retail level is now $80 for this shoe.
So the $80 shoe you bought at the skate shop cost the shoe company around $20 to make, give or take a few dollars.
Now if you take a 'made in the US' shoe like a
New Balance 998 Made in the USA which costs $210, we can assume the average cost for NB to produce the shoe is about $52.50. Granted this is a running shoe, not a skate shoe, but the same basic cost/pricing ratio applies.
That cost difference alone would hurt companies a ton in a time where people are already complaining heavily about the prices of
shoes everything going up, which they will with the upcoming tariff increases for the US in 2025. EU pricing should stay the same because additional cost due to tariff pricing applies only to the US at the moment? Dunno really why I wrote all this but yeah, hope this breaks things down for y'all. Source: I used to work in the footwear industry
tl;dr - shoes would cost way too much to manufacture in the US, so that production shift wont happen.