Industry Analysis & Industry Trends
Australian footwear producers have faced a tough operating environment over the past decade. The dominance of low-cost foreign competitors, tariff reductions and import penetration have significantly changed the industry's structure. The industry has also been dealing with skilled-labour shortages, accelerated industry reforms and companies outsourcing production overseas. Finding a significant low-cost footwear producer based in Australia is now a difficult task. However, several larger footwear manufacturers still produce industrial and safety boots, while sheepskin footwear such as ugg boots has retained stable domestic output levels over the past five years.
In 2014-15, industry revenue is estimated to decline by 3.6% to $486.5... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
The Footwear Manufacturing industry is in the decline stage of its life cycle. Over the 10 years through 2019-20, the industry's contribution to the economy (industry value added) is expected to fall by an annual rate of 1.2%, a weak performance when compared with annualised GDP growth of 2.7%. This indicates that the industry is growing at a slower rate than the overall economy.
Industry establishments are anticipated to fall by an annualised 1.3% over the 10-year period. High wage and rent costs have made it difficult for domestic footwear producers to compete with a significant influx of cheap imports. As such, many local manufacturers have exited the industry or moved production offshore to low-cost countries such as China... purchase to read more