New Balance Brings Production Home To US After COVID Shutdowns In Asia

Boston-based sports footwear and apparel brand New Balance has opened a production facility near its headquarters following COVID-19 outbreaks in Asia that slowed production.

New Balance on Monday announced the opening of an 80,000-square-foot facility in Methuen, a city located about 30 miles northeast of Boston. There was no direct mention of production disruptions overseas, but the company said that the factory signaled a "strong commitment to American manufacturing" and that its factory was a testament to its "longstanding pride in American craftsmanship."

“Manufacturing has always been an important part of our company culture,” Joe Preston, New Balance's president and CEO, said in a statement. “Our associates have proven that high-quality athletic footwear can be produced in the U.S. Their skilled craftsmanship and dedication to continuous improvement will help us meet our significant U.S. and global consumer demand and drive our continued business growth.”

Washington, D.C.-based trade group Footwears Distributors and Retailers of America (FDRA) estimates that up to 99% of all footwear sold in the U.S. is imported, with China alone accounting for 70% of all imports.

China has been wracked by outbreaks of COVID-19 across several of its biggest manufacturing sectors. After an outbreak of Omicron in March, both Shenzhen and Shanghai were forced to lock down in accordance with Beijing’s strict “zero-COVID” policy.

This policy, though defended by President Xi Jinping, has been panned for exasperating the supply chain disruptions that have pushed up prices worldwide given China’s heft as a manufacturing giant.

The footwear industry has also been hobbled by problems closer to home.

According to the FDRA, American consumers are paying more for shoes than necessary with an estimated $6.4 billion spent in 2020.

Last October, the industry penned a letter to President Joe Biden to remove tariffs on children’s shoes that are imported, arguing that consumers were paying anywhere from 20% to 70% more as a result of current trade rules.