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In the News Teaching Activity – Can the USA really bring trainer manufacturing home? (June 2025)

Elizabeth Veal

23rd June 2025

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Reshoring shoe manufacturing to the USA faces steep economic hurdles.

While Keen’s Kentucky factory may symbolise a revival in American manufacturing, the economics tell a tougher story. High US labour costs—10 to 12 times those in Asia—undermine competitiveness, making large-scale domestic shoemaking viable only through capital-intensive automation. This shift reflects a broader trend: manufacturing is now driven by productivity and technology, not mass employment. The near-total erosion of the US footwear supply chain also highlights the difficulty of reshoring in an industry where comparative advantage still lies overseas. Without major systemic change, American-made shoes are likely to remain a niche, not a norm.

Can shoes be made in the US without cheap labour? - BBC News

1. Explain why the USA does not have a ‘comparative advantage’ in shoe and trainer manufacturing.

2. Assess whether it is possible to increase US jobs in shoe manufacturing.

3. Discuss the economic benefits and costs of USA’s ‘America First’ policy.

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Elizabeth Veal

Liz has taught Economics for over 25 years, including several years as Head of Economics at leading schools.