Footwear Manufacturers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 200 footwear manufacturers in the US design and market their own products, but may also contract to produce footwear for outside designers. Products include dress and casual shoes, athletic shoes and cleats, industrial shoes, sandals, boots, ballet slippers, house slippers, and orthopedic shoes.
Changes in Fashion
Consumer interest in shoes can be fickle with styles changing and falling out of favor within seasons or a few years.
Global Competition
Imports dominate the US footwear market, accounting for 99% of sales.
Industry size & Structure
The average footwear manufacturer operates a single location, employs 46 workers, and generates about $8 million in annual revenue.
- The footwear manufacturing industry consists of about 200 companies that employ 9,200 workers and generate $1.6 billion in annual revenue.
- 44% of footwear manufacturers have fewer than 5 employees, while the 10 largest firms have over 500 employees.
- The industry is highly concentrated: the 8 largest companies account for 60% of industry revenue.
- The states with the largest number of footwear manufacturing facilities are Texas, California, New York and Maine.
- Companies with domestic manufacturing operations include San Antonio Shoemakers (SAS), Modern Vice, Red Wing Shoe Company, Minnetonka, MacNeill Engineering (Champ brand), and Wolverine.
- Companies may have foreign operations or contract production to foreign manufacturers. Crocs sources its production from licensed manufacturers in Asia. Sketchers designs and markets footwear, but contracts the actual manufacturing to foreign producers, primarily in Asia.
Industry Forecast
Footwear Manufacturers Industry Growth
Source: Vertical IQ and Inforum
Recent Developments
Mar 13, 2025 - Sales Fall Amid Consumer Pullback
- According to the Footwear Distributors and Retailers of America (FDRA) trade group, footwear sales dropped 26.2% for the week ending February 22, 2025, compared to the same week a year ago. Sales fell again in March, falling 10% for the week ending March 8, year over year. FDRA CEO Matt Priest said the decline is caused by caution due to tariff uncertainties. Per Priest, “This isn’t just a routine market shift—it’s a clear sign that rising inflation and the looming threat of new tariffs directly impact consumer behavior.” The Trump Administration has begun implementing a range of tariffs on China, Mexico, and Canada, as well as on products such as steel and aluminum. Retail Dive reports that Crocs plans to take a $11 million hit to gross profits from tariffs this year; the company expects about 15% of its inventory to be Chinese imports to the US.
- Footwear manufacturers are adjusting to new legislation now in effect in California and New York restricting the use of PFAS in apparel, footwear, bedding, and other textiles, according to Footwear Insight magazine. Often called “forever chemicals” due to their difficulty breaking down, PFAS are a group of chemicals widely used in consumer products. The chemicals are often used for waterproofing footwear and fabric treatments and finishes. The California law bars the manufacturing, sale, and distribution of new fabric products that contain PFAS, according to YahooNews. Manufacturers must instead use the least toxic alternative available or create alternative designs to achieve the desired properties. Industry executives say removing PFAS from products can be a long process due to the chemical’s pervasiveness as well as complex supply chains. Companies also need to review existing inventory and address any contaminated inventory.
- According to Footwear News, more American footwear brands are considering finding a supply chain location closer to home amid the threat by President-elect Donald Trump’s administration of new tariffs. Manufacturers in the US told Footwear News that they have seen more brands looking for factory partners on US soil to avoid tariff issues. Trump has announced tariff plans of 10% to 20% on imports from all foreign countries and a 60% to 100% tariff on imports from China. About 99% of the shoes sold in the US are currently imported from China, Vietnam, and Indonesia, and tariffs in these regions could significantly increase footwear costs. Some US manufacturers had already been adjusting their supply chains to bring manufacturing locations closer to home following the supply chain meltdown during the pandemic. Hilos, which offers a US-based manufacturing solution for footwear manufacturers and recently partnered with Steve Madden to reduce its foreign production, noted that the upcoming 2028 Olympics based in Los Angeles and the 2026 US bicentennial have also driven demand among brands for “Made in the U.S.A” products. Elias Stahl, CEO of Hilos, said footwear made in the US uses new technologies and a different approach than overseas factories due in part to the fact that the US lacks the level of skilled shoe industry workers needed to assemble shoes. Per Stahl, “The way that footwear is made overseas — 65 parts assembled in 150 steps — is not viable in the U.S., nor is it necessarily something we want to bring back.”
- Footwear manufacturer Steve Madden has announced it is significantly reducing its production in China, to adjust to the estimated impact of president-elect Donald Trump’s tariff proposals, according to CEO Today magazine. Trump has proposed universal 10-20% tariff on imports from all countries and an additional tax on imports from China. Steve Madden’s CEO Edward Rosenfeld said the company has been preparing for the potential scenario by creating a wider network of manufacturing partners since China currently accounts for about 70% of Steven Madden’s imports. The company said it expects to reduce its sourcing from China to between 40% to 45% by the end of 2025, in order to stay competitive in the shifting landscape of tariffs and international trade. Steven Madden has said it is looking to other countries with more favorable conditions for manufacturing and is not considering moving back to the US. Per Rosenfeld, “We are not considering bringing production back to the U.S. The costs just don’t make sense for us or the industry." According to a report from the National Retail Federation, the cost of a $50 pair of sneakers could rise from $59 to $64 if the proposed tariffs go into effect.
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