Raw materials costs and labour shortages are the big headaches for Chinese shoe producers
19/06/2014
It focuses on factories in China because this is where over 80% of footwear for the US market is produced; data from 110 different factories across the Asian country feature this time, with 27% of them producers of athletic shoes.
On announcing the details, FDRA president, Matt Priest, said the goal of the survey is to gain insight into the current state of footwear production in China and to develop a better understanding of how factories are managing the various challenges facing the industry.
“If we can better help our members understand what issues factories face and what challenges they prioritise, we can enhance industry communication and more effectively work with factories in a collaborative way,” Mr Priest added. “As recent events at footwear factories have shown [a reference to protests at a factory run by Yue Yuen in Guangdong province in April], understanding the complex challenges both workers and factory owners face is vitally important to the overall success of our industry.”
The FDRA said on releasing the survey that it reveals “a strong sense of optimism” among manufacturers about their business prospects, but it also indicates that they are facing challenges related to seasonal production fluctuations, raw material costs and shrinking labour pools. Of the companies that took part, 59% listed raw materials costs among their biggest challenges, while 47% had a shortage of available workers on their lists.
Global professional services firm Elevate worked with the FDRA to produce this report.
Image from New Balance.
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