Reshoring is an extremely important aspect of reducing the carbon footprint of sneaker brands. It’s also one of the most overlooked and under-discussed aspects. This is because the production of footwear in the U.S. is almost taboo. Brands have conditioned the consumer to offshore production and cheap retail prices. The majority of footwear is purchased at under 100 dollars, although the media would have the buying public think every pair of kicks bought are 200 dollars plus. New Balance has long been a brand assembling footwear in the U.S., but not a large amount of the product is truly Made in the U.S. New Balance explains that Made in the U.S models account for a small percentage of sales in the U.S.
This is an important detail to understand. Reshoring is an extensive and expensive process. Employees at U.S. manufacturing facilities are paid appropriate wages which means the sneakers crafted in the States, even on a larger scale than a company like COMUNITYmade, will still hit a price of 175 or higher. New Balance is already making the following models at the current Skowhegan facility: MADE 996, 997, 998, and 1300. Those models are all sold at prices from 175 to 205.00 dollars. The price-point places New Balance sneakers made at Skowhegan in the premium price range. Why is this important? The sneakers made at Skowhegan are basically models coveted by sneaker culture. Sneaker culture often assumes the sneakers bought by their community drives brand growth. The truth is the more expensive sneakers tend to be sold in smaller numbers to generate hype. New Balance states MADE isn’t huge and I’d like to take this section to show the comparison in more scarce models vs what sneakers sell in greater numbers fueling a brand’s revenue.
By partial third-party estimates a quick data search shows this year alone the keywords “New Balance 574 + Mens” delivers 17,000 pair sold in the aftermarket for over $1,000,000 dollars. The 574 is not a Made in the U.S. product and it rings up at less than 100 dollars a pair. By contrast the keywords “New Balance 998 + Mens” delivers 938 pair sold in the aftermarket for over $167,000 dollars. Third party data is utilized as a comp for what is taking place at retail. I use the information here to establish that New Balance continuing their reshoring may not be a considerable amount of revenue, but the MADE series for New Balance is an incredible marketing tool and does allow for New Balance to tout a reduction in carbon emissions on production and shipping. Here are the details on the expansion. Use the source link above to read more.
Including NB Skowhegan, New Balance owns five manufacturing facilities in Maine and Massachusetts where approximately 1,300 U.S. workers prepare, cut, and mold athletic shoe materials and components and then sew, press, and assemble them into the final product. The company opened its fifth U.S. athletic shoe factory in Methuen, MA in 2022. New Balance’s $65 million investment will add 200 new jobs and double the factory’s production capabilities through a 120,000- square-foot single-story addition that will be completed by the end of 2024.