NEW BALANCE FOOTWEAR, STILL MAKING ATHLETIC FOOTWEAR IN AMERICA

     Some of you who read my blog must think I'm a starry eyed idealist to believe that it still makes sense to make  small, lightweight, intricate products in North America.  Sure you say.  I've given some local examples in my blog of companies like Custom Leather(belts), Salus(lifejackets), Kodiak(workboots), Roots(Leather Bags) and Cutco(kitchen cutlery) who produce some or all of their production on this side of the pond.  But they're the exception to the rule you say, and  not something that can be replicated often here in high cost Ontario.  Well I guess I've always been a contrarian of sorts so I'm going to continue to give you examples of world class companies that buck the "close up and import" trend because "I believe" we can Own the Podium here in world class Canada. 

     Take New Balance Footwear for instance;  a company that was a die customer of mine back in the early 1980's when they made athletic footwear in a factory in downtown Kitchener.  I recently found out while buying a pair of athletic shoes at Runners Choice that New Balance still manufactures or assembles 25%(7 million pair) of its worldwide production in 5 factories that employ 2200 Associates located in Massachusetts and Maine;  and that no other athletic footwear manufacture produces domestically; just New Balance.  Their U.S. made models have bold hang tags entitled "Committed to American Workers".  (Interestingly, the sales person at Runners Choice has seen a rising percentage of customers inquiring about Made in North America product, a demand he can satisfy only with New Balance product)  If you go to their online store you can quickly access the models that are made in America.  And if you go to their website you are struck immediately by their emphasis on their Footwear Manufacturing Heritage through a Factory Video Tour, a Heritage Video of one of the towns they produce in,  and direct quotes like "If we can make great athletic shoes in America, why can't our competition"; or "Committed to American Workers is more than a slogan or viewpoint-it is the heart and "sole of our company."

     Why does New Balance, a $1.6 billion global company, continue to make product in America when they could easily shift production offshore to their existing supply chain partners?  Dave Crosier, New Balance's V.P. Value Chain answers this questions:

     "We are proud to manufacture in the U.S. because our associates are experts in "lean" manufacturing and are among the best-of-the-best in the industry.  New Balance is proud to showcase the powerful unity of our American workforce and their local community."

But their is more to it than that obviously.  Here are some keys to their success.

                                         -A worldwide brand synonymous for quality and innovation

                                         -Top notch marketing programs that target both serious athletes

                                           and the comfort shoe segment.

                                         -Product innovation and diversification.

                                         -Multiple marketing channels including retail, company owned outlets,

                                          online stores, licenced partners, OEM direct, and Specialty Dealers

                                         -Lean manufacturing, factory automation, and continuous

                                           Improvement programs.

                                         -Private ownership

And perhaps most importantly, committed and passionate owners, managers, and associates who believe in the importance of domestic manufacturing.  Jim Davis and his wife Anne, who bought the company back in 1972, have spread this belief throughout the company; a belief that the company, their customers, and their local communities gain by continuing to produce a significant portion of their footwear in North America.  The company gains in many ways including a marketing edge, improved customer response time, a unique corporate image, a supply hedge against foreign disruptions, eligibility to supply "Made in America" product to federal, state, and local government agencies like the U.S. Postal Service, improved human relations, and the ability to benchmark the quality, pricing, and methods, of their offshore contractors versus their domestic plants.  Customers, in this era of high unemployment and intense job reductions, can feel good about the fact that by buying New Balance they are not only purchasing an innovative, quality product but are also helping to bolster domestic employment and support their local economy.  And of course, the local communities gain by the tremendous multiplier effect their local factories create that benefit many more people than just the New Balance Associates.  It's a Win-Win-Win; a Triple Bottom Line result that comes from a New "Balanced" approach to managing a corporation.  Could this be the way of future?