Pretty much all sneakers sold in the U.S. are not made in the U.S. "New Balance Athletic Shoe is the sole athletic-shoe maker that still has factories in the U.S." Sadly, this may not be for too much longer. Tariffs on imported running shoes may soon be done away with. This will put an end to their competitive advantage since their competitors will be able to afford to produce their products in the U.S. 99% of sneakers are imported to the U.S., with the majority of them coming from Asia. There is a lot of competition between the U.S. and Asia in the production of sneakers. Material costs, labor intensitivity, and the costs of labors are all main issues that these two countries compete over.I am not sure when this tariff decision will be made but I will be sure to keep an eye out for it. I work in the consumer goods industry so I am well aware of all the issues of domestic and imported costs. I also know that the "made in America" logo on products is a big, big incentive for people to purchase even if the price is higher than what they are willing to spend.
The tariff dilemma is just another external factor that New Balance will have to deal with via creating an effective strategy to combat it. I think they should really showcase on their packaging and in the media that their products are made in the U.S and they are the original company to be doing so. I had no idea that they were until I read this article. I will just have to wait and see how New Balance will address the situation once the decision is made.
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