Sneakers made in the United States cost significantly more than those made in China, Vietnam or Indonesia. This difference in costs stems from higher salaries, more stringent provisions and lack of scale in US production. According to the Academy of Shoes, the middle sneakers made in Asia costs $ 15 to produce, while in the United States it ranges from $ 35 to $ 45.
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Asian countries dominate the production of sneakers due to more expensive labor and rationalized supply chains. Below we will destroy hard numbers, retail prices and factory costs, which explain why the “manufactured in the US” sneakers are priced at a premium.
Labor costs are the biggest reason why sneakers made by the United States cost much more than those made abroad. According to Talent.com, workers in US factories earn an average of $ 12 to $ 16 an hour. For comparison, Chinese workers earn about $ 3 to $ 4 an hour, while Vietnam and Indonesia pay more than $ 1.50 to $ 3 per hour. These differences in labor costs directly affect the production of each pair of sneakers.
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Compared to us made sneakers, production in China, Vietnam or Indonesia usually falls between $ 11 and $ 20 per couple. As a result, US brands must value sneakers made by Americans much higher in order to remain profitable. Only this labor difference can double the basic price before delivery, marketing or marking.
The US also imposes more rules of safety and compliance with labor by adding total production costs. Asian factories work at larger volumes, which makes each pair more cheaper because of the scale. According to WSJ, even efforts for automation in the US have not yet corresponded to the profitability of manual labor in Southeast Asia. All these factors contribute to the broad difference in production costs.
When comparing retail prices, sneakers produced in the US often cost double or even triple their colleagues produced in China. For example, the emblematic New Balance 990V5, manufactured in US factories, usually sells at about $ 199, according to the official New Balance website. Conversely, Nike IV’s popular Air Monarch, produced in China, is sold at a retail for approximately $ 80, as stated in Nike’s official store.
This significant price difference is mainly due to labor costs and scale savings. In China, large factories effectively produce sneakers in huge quantities, significantly reducing the cost per unit. US factories, on the other hand, usually produce smaller batches, leading to higher production costs of a couple. The new balance justifies its higher prices through branding strategies, emphasizing quality workmanship and home supply.