Most people have seen New Balance sneakers around, but do they know the athletic wear company is a major American employer? Established in 1906, the company now produces sneakers and other athletic apparel and equipment in the United States, Britain, and Japan. In a big boost for American manufacturing, New Balance is investing big in two expansions in the Northeast. First, it is doubling its output at its Skowhegan, Maine factory with a $65 million expansion. This major investment is anticipated to add some 200 new jobs, which is a solid win for Maine’s economy. The goal is to complete the expansion by this year’s end.
While much of New Balance’s domestic production is in Maine, the company plans to get output rolling from a new factory in Londonderry, New Hampshire, in 2025. New Hampshire’s political leaders have widely praised the new facility as an economic win for the Granite State, with 150 new jobs expected at the Londonderry plant. Together, the Skowhegan expansion and the Londonderry factory will add about 350 jobs to an existing factory workforce of about 1,500, meaning New Balance is investing heavily in expansion in 2024 and 2025!
Activewear Industry is a Major Employer
The athletic wear industry, also known as activewear, has seen rapid growth over the past few decades. Changing fashion norms have made activewear more socially acceptable outside the gym, with athleisure wear becoming common among middle-class consumers. Additionally, the growing number of women and girls in sports is fueling an activewear expansion, coupled with increased exercise options (apps, gym chains, and popular fitness programs) that have gotten more people working out.
Combined, activewear and athleisure wear are industries valued at more than $100 billion, with solid growth expected over the coming decade. The United States has the largest activewear industry in the world, accounting for about 30 percent of global output. Demand for activewear will likely remain strong as Americans desire to remain physically active and healthy after the COVID-19 pandemic of 2020-21. However, there is plenty of room for improvement: only about a fifth of Americans exercise or engage in physical activity on a daily basis. Pe.haps New Balance’s expansion can bring down prices on their shoes and apparel and attract a few more consumers to get active!
Domestic Footwear May See Improved Market in 2025 and Beyond
New Balance heavily promotes its products as American designed and assembled, with its MADE line of shoes and apparel consisting of 70 percent or more domestic components by value. With both major political parties supporting higher tariffs than in past decades, New Balance could benefit in competition with rival activewear producers, such as Nike, who have to import more parts or finished products. If tariffs rise in 2025 and beyond, New Balance and other domestic activewear companies could see their products become more popular with consumers. Reebok produces many of its sneakers overseas, but some sneakers and the company’s lines of workwear (postal service shoes and military-style boots) are made in the United States.
