Footwear Manufacturers NAICS 316210

Jul 10, 2025 - Footwear Execs See Weaker Sales Outlook: Survey

• The Footwear Distributors and Retailers of America (FDRA) released the results of its Q2 2025 Shoe Executive Business Survey, which shows growing concerns among industry leaders over weakening consumer demand, higher costs, and unpredictable tariff policies. The survey showed a significant downturn in industry confidence, with 82% of respondents expecting a weaker US economy over the next six months, 88% foreseeing less demand from footwear shoppers, and 49% expecting lower comparable store sales in the next six months. Executives expect to see a jump in landed costs in the second half of the year, with 60% anticipating double-digit increases. Consumers will feel the effects as well, with 75% of footwear executives anticipating retail prices to grow by more than 5%. Leaders say they will trim costs during the remainder of the year, by curbing capital expenditures, cutting hiring, and reducing operating costs.
• Apparel, Leather & Allied Products is one of the nine manufacturing industries reporting growth in June’s Manufacturing ISM Report on Business. Apparel, Leather & Allied Products reported increases in production and new orders, growth in import volumes, and higher inventories. Other industries reporting growth during the period include Petroleum & Coal Products; Nonmetallic Mineral Products; Miscellaneous Manufacturing; Furniture & Related Products; Computer & Electronic Products; Machinery; Food, Beverage & Tobacco Products; and Electrical Equipment, Appliances & Components. Six industries reported contraction: Textile Mills, Wood Products; Paper Products; Chemical Products; Transportation Equipment; and Fabricated Metal Products. Overall, economic activity in the manufacturing sector contracted for the fourth consecutive month in June, with the Manufacturing PMI registering 49%.

• The US footwear manufacturers industry is projected to grow at a CAGR of 3% between 2025 and 2029, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. This rate is slower than the overall economy's anticipated growth. Consumer sentiment is expected to improve in the forecast period, which bodes well for the sector. A factor that may curb consumer spending is substantially higher tariffs on consumer goods, which may be painful for households. On a positive note, lower inflation supports a moderate increase of real disposable income by about 2% in 2025 and 1.9% in 2026. Real income could suffer if average prices rise due to tariff implementation. The nondurable goods manufacturing sector forecast indicates that the labor force is expected to diminish, barring immigration reform that allows greater numbers. However, new technologies could support labor productivity for the industry.
• The American Apparel and Footwear Association (AAFA) welcomed news in May 2025 that the US and China proclaimed a 90-day pause on tariffs, with US tariffs reduced to 30% and China tariffs reduced to 10% beginning on May 14. Earlier in the year, the US had raised tariffs on Chinese goods to up to 145%. According to AAFA President and CEO Steve Lamar, the temporary agreement may help “unstick the effective trade embargo” since the higher tariffs went into place, but consumers still face an expensive back-to-school and holiday season. He noted, “If freight rates spike due to the tariff-induced shipping disruptions — which will take months to unwind — we could see costs and prices creep up even further. What’s needed now is a long-term deal — not just with China but with all our trading partners — so we can predictably make long term trade, investment, and sourcing decisions.” The Trump administration has pushed tariffs as a way to support more US manufacturing.