Knot again: Revenue is projected to continue declining due to rising foreign competition

While operating conditions for the Shoe and Footwear Manufacturing industry in Canada have been positive over the five years to 2019, the industry still struggles against rising imports. Both per capita disposable income and consumer expenditure are expected to rise in Canada during the five-year period, driving rising domestic demand for industry products. Import penetration is high. Footwear manufacturers in developing countries have a significant advantage in terms of cost structure over industry operators, as they spend significantly less on labour. As a result, foreign manufacturers can keep product prices low. Over the five years to 2024, IBISWorld forecasts industry revenue will more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies

Industry Threats & Opportunities

  • The Canadian dollar’s depreciation has fuelled rising international demand for increasingly affordable industry exports
  • The effects of fluctuating exchange rates have an influence on revenue
  • The Canadian dollar’s appreciation will make imports increasingly affordable
  • Industry Report - Industry Investment Chapter

    The Shoe and Footwear Manufacturing industry in Canada has a low level of capital intensity. IBISWorld estimates that for every dollar spent on labour, industry operators allocate $0.02 to capital. The industry is labour intensive, as it requires manual labour for various tasks involved such as stitching, finishing and packaging. Industry operators have little incentive to invest heavily in automation, as the average industry profit margin is low and demand for industry products is subject to significant volatility. However, while capital intensity has remained low over the five years to 2019, it has markedly decreased from 2014 when operators spent $0.05 on capital per dollar spent on labour. This shift can be attributed to the halving of capital costs' share of revenue...purchase to read more.

    Additional Insights for the Shoe & Footwear Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Shoe & Footwear Manufacturing Industry are

  • Ability to attract local support/patronage
  • Ability to expand and curtail operations rapidly in line with market demand
  • Access to niche markets
  • IBISWorld analysts also discuss how external factors such as Canadian effective exchange rate index and Per capita disposable income in the Shoe & Footwear Manufacturing industry impact industry performance..

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    What's in this report

    What is the Shoe & Footwear Manufacturing Industry?

    This industry manufactures footwear for adults and children. Orthopedic footwear and specialist athletic footwear, such as skates or roller blades, are not included.

    Industry Products
  • Boots, dress and casual shoes and sandals
  • Work and utility-type boots and shoes
  • Sports shoes
  • Other shoes and footwear
  • Industry Activities
  • Manufacturing rubber and plastic footwear
  • Manufacturing house slippers
  • Manufacturing athletic shoes
  • Manufacturing cleated athletic shoes
  • Manufacturing dress shoes
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Canadian effective exchange rate index
  • Per capita disposable income
  • Consumer price index
  • World price of rubber

  • Current Performance
  • Domestic demand
  • Fluctuating currency exchanges
  • Consolidation and profitability
  • Chart: Revenue Growth

  • Industry Outlook
  • International trade
  • Industry landscape
  • Table: Shoe & Footwear Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Shoe & Footwear Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Logging in Canada
  • Coal Mining in Canada
  • Footwear Wholesaling in Canada
  • Shoe Stores in Canada

  • Key Selling Industries
  • Cardboard Box & Container Manufacturing in Canada
  • Rubber Product Manufacturing in Canada
  • Synthetic Fibre Manufacturing in Canada
  • Textile Mills in Canada

  • Products & Services
  • Boots, dress and casual shoes and sandals
  • Work and utility-type boots and shoes
  • Other shoes and footwear
  • Sports shoes
  • Chart: Shoe & Footwear Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Exports
  • Retailers
  • Wholesalers
  • Other markets
  • Chart: Major Market Segmentation for the Shoe & Footwear Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesRent and utilitiesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Shoe & Footwear Manufacturing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Shoe & Footwear Manufacturing Industry

  • Industry Globalization
    Genfoot Inc.,
  • Table: Genfoot Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Shoe & Footwear Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Shoe & Footwear Manufacturing Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)
  • Canadian-dollar effective exchange rate (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    North American Free Trade Agreement (Nafta)
  • A generally duty-free trade agreement signed by the governments of Canada, Mexico and the United States, creating a trilateral trade bloc in North America.
  • Offshoring
  • The transfer of manufacturing operations to another country, regardless of whether the work is outsourced or stays within the same corporation or company.
  • Outsourcing
  • Subcontracting process where manufacturing is conducted by a third-party company either locally or internationally.
  • Trans-Pacific Partnership (Tpp)
  • A proposed trade agreement between numerous countries such as Canada, the United States, Vietnam and Chile that would eliminate most duties placed on goods traded across the Pacific.
  • What Our Customers Say

    Why buy this report?

    The Shoe & Footwear Manufacturing market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Shoe & Footwear Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Shoe & Footwear Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Shoe & Footwear Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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