Industry Analysis & Industry Trends
Australian footwear producers have faced a tough operating environment over the past decade as the dominance of low-cost foreign competitors, tariff reductions and import penetration have caused the industry's structure to change significantly. The industry also faces 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 produce industrial and safety boots, while sheepskin footwear such as ugg boots has retained stable domestic output levels over the past five years.
In 2013-14, industry revenue is estimated to decline by 2.7% to total $489.3... purchase to read more
Industry Report - Industry Investment Chapter
The industry exhibits a moderate level of capital intensity. IBISWorld estimates that for every dollar spent on capital costs, $5.61 is spent on wages. Footwear manufacturing requires a significant level of labour inputs, and a moderate amount of capital investment. Although the level of capital employed in the industry has been rising for over a decade, it is difficult to completely replace labour with automated processes in particular parts of production. For example, shoemaking still requires workers to operate machines for stitching leather and other material.
Automation levels in footwear manufacturing vary depending upon styles. Plastic shoes that use an injection moulding process require a great deal of capital equipment... purchase to read more