Mon, 16 Jun 2025

Mon, 16 Jun 2025 Can trainers be made in the US without cheap labour?

American production is possible, but it often needs to be automated to be cost effective.
Keen, a family-owned shoe company from Kentucky, has opened a new factory near Louisville, which seems to fit into the "America First" economic vision championed by the Trump administration. However, beneath the surface, this development reveals a more complicated story about manufacturing in America today. The factory relies heavily on automation, with sophisticated robots that fuse soles and trim materials, highlighting the transformation of goods production from labor-intensive to capital-heavy and high-tech. Keen's chief operating officer, Hari Perumal, attributes the move to rising costs in China, which pushed the company to start producing domestically in 2010. However, this decision was not without its challenges. Domestic shoe production remains a significant undertaking due to global supply chains, with billions of pairs imported annually into the US. To make domestic production viable, Keen has invested heavily in automation, enabling the Kentucky plant to operate with just a fraction of the workforce required overseas. Major brands like Nike, Adidas, and Under Armour also attempted to develop new manufacturing technologies in the US around a decade ago but ultimately failed. Even Keen only assembles 9% of its shoes in America. The story of American manufacturing is one of dramatic rise and gradual decline. After World War Two, US factories churned out shoes, cars, and appliances employing millions and helping to build a robust middle class. However, globalisation accelerated in the late 20th Century, contributing to the hollowing out of America's industrial heartland. Shoemaking has become a symbol of these changes, with approximately 99% of shoes sold in the US being imported from countries like China, Vietnam, and Indonesia. The domestic footwear supply chain is almost non-existent, with only about 1% of shoes sold being made in America. Pepper Harward, CEO of Oka Brands, one of the rare companies still producing shoes in the US, notes that sourcing affordable parts and materials in the US remains a constant struggle. He believes it would take high tariffs for an extended period to give people incentives to reshore production, with only about 6% of production realistically returning to US soil. Keen's new factory represents a glimpse into what the future of American manufacturing might look like - one where technology and tradition intersect.
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