Rising Costs Stimulate Domestic Shoe Factories To Seek New Breakthroughs

Constantly improving

But where? In order to find the most suitable location, FootwearNews and Brazil, Ethiopia, Indonesia, Mexico, Vietnam and other regions of the footwear association to carry out a dialogue, I hope to know what specific measures the governments of these regions have promulgated to attract foreign investment.

Of course, for many people, China is still the best place to make shoes. Last year, China produced 12 billion pairs of shoes.

But times are different and labor costs continue to rise. Many shoe factories in China are also pulling out of the footwear industry, seeking more profitable industries, and most of the shoe factories are turning to inland and northern parts of China.

The good news is that many other countries attach great importance to shoemaking. Mexico has recently launched a quality assurance system because of its proximity to the United States. It is bound to become the best choice for the footwear industry in the United States. Indonesia is also making every effort to attract foreign investment.

One is the introduction of the specific operation cost requirements of these countries.

Brazil:

Number of factories: 8200

Average hourly wage: $3.18

Scope of production: Men's shoes, women's shoes, children's shoes.

Brazil has a self-contained production chain, and its raw materials are also abundant, so it does not need to be imported completely.

In addition, Brazil has the largest herd in the world, which can provide a large number of animal skins.

Brazil's shoe making technology is also very advanced. The government has also introduced many measures to support the development of the footwear industry.

Ethiopia: factory number: 1150

Average hourly wage: 15 cents -1.5 dollars.

Scope of production: casual shoes and evening shoes.

Ethiopia can provide the best raw materials for shoes making in the world, and the cost of labor is 1/8 of China's.

The government has extensively established industrial areas, highways and power supply systems in various regions of the country.

Indonesia

Number of factories: the exact number is not clear. 12 new factories have just been established.

Average hourly wage: 70 cents -1.2 dollars.

Scope of production: sports shoes, slippers, casual shoes, etc.

Indonesia has a long history of shoemaking, and the workers are very amazing in shoemaking.

The government and the business sector have introduced many measures to improve the national infrastructure, including pportation, highways, electricity and so on.

Mexico:

Number of factories: 11000

Average hourly wage: $3.03

Scope of production: Men's shoes, women's shoes, children's shoes.

The location of Mexico is very advantageous. It is very close to the United States and does not require tariffs.

Meanwhile, the United States and the Mexico government signed a long-term agreement to allow the two countries to trade for a long time.

Vietnam: the number of factories: 600

Average hourly pay: 1-1.2 dollars

Scope of production: sports shoes, slippers, etc.

Vietnam's labor costs are lower than those of China, Philippines, Malaysia and Thailand. Vietnam's labor laws and large shoe making companies such as Nike, Adidas, Clark and so on comply with each other.