BOSTON—New Balance Athletic Shoe Inc. is unique in the footwear industry.
Shoe businesses began downsizing in the U.S. more than a decade ago. New Balance expanded.
Its competitors fled from the U.S. in search of cheaper manufacturing offshore. New Balance continued to build its base in America.
Why? “We made our first pair of running shoes in 1938 and have never wavered in our commitment to domestic manufacturing,” said Rob DeMartini, CEO of the Boston-based manufacturer.
“Our New Bal- ance associates have pro¼ven that high-quality athletic foot¼wear can be produced com¼pet¼i¼tively in A¼merica.”
The company, which also produces athletic ac- cessories and apparel, prides itself on being the only domestic manufacturer of athletic foot-wear in the U.S.
About a quarter of the firm’s athletic footwear production is made or assembled each year at its plants in Boston; Lawrence, Mass.; and Norway, Norridgewock and Skowhegan, Maine, a company spokeswoman said.
New Balance also operates a manufacturing facility in Flimby, England. It does have supplier/partners in China and Vietnam that make products for the company, she said, but the firm’s manufacturing base has always been in the U.S.
Building U.S. presence
Despite the poor economy, Boston-headquartered New Ba-lance continues to build its base in America, where it has about 2,600 employees.
The firm’s most recent expansion came in September 2008 when it opened a 3,000-sq.-ft. facility, called Sports Research Lab, at its Lawrence manufacturing complex.
The laboratory’s goal is to design and develop new products and innovations “through the study of athletes, biomechanics and sport,” according to Edith Harmon, vice president of advanced products for New Balance.
It houses state-of-the-art biomechanics equipment, office space, a 120-foot running track, a 30-foot by 30-foot court, a smash lab and a variety of equipment used for testing.
The 103-year-old firm has consistently gained ground in the marketplace because it follows the same principles it was founded upon: superior customer service, a commitment to domestic manufacturing and leadership in technological innovation, the company said. It also prides itself in the lean manufacturing techniques it uses to keep prices down.
Much of the credit for the success of New Balance’s five-plant U.S. operation goes to the company’s employees, who are committed to their work and the products the company manufactures, DeMartini said.
New Balance recently came out with an online documentary as part of an awareness campaign that highlights the craftsmanship of its domestic manufacturing work force.
“During this tough economic time, we are proud to showcase the powerful unity of our American work force and their local community,” DeMartini said. “This documentary highlights Skowhegan as our first Maine factory, but tells the success story of all New Balance manufacturing facilities and associates.”
It can be viewed on the firm’s Web site at www.newbalance.com/USA.
However, the firm’s focus on building a strong U.S. base hasn’t prevented New Balance from growing globally during the last decade. The privately held company, which had global sales of about $1.64 billion in 2008, has expanded its international footprint regularly during that span, the spokeswoman said, with about 4,000 employees now operating in more than 120 countries.
It has wholly owned subsidiaries in Australia, New Zealand, the United King- dom, Germany, Sweden, Hong Kong, Singapore, France, Mexico, Canada, Japan, Brazil and South Africa, making it one of the largest athletic footwear and apparel businesses in the world.
Humble beginnings
That’s quite a leap from the tiny business that William J. Riley, a 33-year-old English immigrant, launched in 1906 as New Balance Arch Co. It initially produced arch supports and prescription footwear for customers with problem feet. After operating out of his home for three years, Riley opened his first office as the firm slowly grew.
New Balance, with annual sales in the $20,000 range at the time, incorporated in 1931 and rented space at a door factory in Cambridge, Mass. But in the midst of the Great Depression, sales plummeted almost 75 percent.
In need of capital, Riley’s top salesman, Arthur Hall, became his partner, and the business survived as other footwear makers toppled. Riley designed and made the first New Balance running shoe in 1938, and by 1941 the company was designing and manufacturing custom sports shoes for running, baseball, basketball, tennis and boxing.
Riley and Hill sold the business in 1953 to Hill’s daughter and son-in-law, Eleanor and Paul Kidd, who brought new ideas and more energy to the firm.
They changed its name to New Balance Orthopedic Laboratory in 1956 and introduced the Trackster, the world’s first performance running shoe made in multiple widths, in 1960.
In 1970, the company became New Balance Athletic Shoe Inc., with annual sales of $100,000.
During the Boston Marathon in 1972, New Balance’s current owner, Jim Davis, purchased the business from the Kidds. Under his leadership, the firm expanded throughout the 1970s, 1980s and 1990s, both at home and abroad.
Davis and his wife Anne played key roles in turning the company into a billion-dollar operation with a long global reach during the last 37 years.
Expansions included: a manufacturing facility in Ireland; the production sites in Maine and Massachusetts; relocating the factory in Ireland to a bigger plant in England; and numerous acquisitions in the last decade.
By 2000, the company reached the $1 billion sales mark and has continued to grow since then.
Through it all, New Balance has never strayed from its roots with good reason, DeMartini said. “Our associates have passion and pride in their craftsmanship, and their dedication to their work is why we are able to withstand economic challenges and remain strong.”
source: By Mike McNulty Rubber & Plastics News Staff
Shoe businesses began downsizing in the U.S. more than a decade ago. New Balance expanded.
Its competitors fled from the U.S. in search of cheaper manufacturing offshore. New Balance continued to build its base in America.
Why? “We made our first pair of running shoes in 1938 and have never wavered in our commitment to domestic manufacturing,” said Rob DeMartini, CEO of the Boston-based manufacturer.
“Our New Bal- ance associates have pro¼ven that high-quality athletic foot¼wear can be produced com¼pet¼i¼tively in A¼merica.”
The company, which also produces athletic ac- cessories and apparel, prides itself on being the only domestic manufacturer of athletic foot-wear in the U.S.
About a quarter of the firm’s athletic footwear production is made or assembled each year at its plants in Boston; Lawrence, Mass.; and Norway, Norridgewock and Skowhegan, Maine, a company spokeswoman said.
New Balance also operates a manufacturing facility in Flimby, England. It does have supplier/partners in China and Vietnam that make products for the company, she said, but the firm’s manufacturing base has always been in the U.S.
Building U.S. presence
Despite the poor economy, Boston-headquartered New Ba-lance continues to build its base in America, where it has about 2,600 employees.
The firm’s most recent expansion came in September 2008 when it opened a 3,000-sq.-ft. facility, called Sports Research Lab, at its Lawrence manufacturing complex.
The laboratory’s goal is to design and develop new products and innovations “through the study of athletes, biomechanics and sport,” according to Edith Harmon, vice president of advanced products for New Balance.
It houses state-of-the-art biomechanics equipment, office space, a 120-foot running track, a 30-foot by 30-foot court, a smash lab and a variety of equipment used for testing.
The 103-year-old firm has consistently gained ground in the marketplace because it follows the same principles it was founded upon: superior customer service, a commitment to domestic manufacturing and leadership in technological innovation, the company said. It also prides itself in the lean manufacturing techniques it uses to keep prices down.
Much of the credit for the success of New Balance’s five-plant U.S. operation goes to the company’s employees, who are committed to their work and the products the company manufactures, DeMartini said.
New Balance recently came out with an online documentary as part of an awareness campaign that highlights the craftsmanship of its domestic manufacturing work force.
“During this tough economic time, we are proud to showcase the powerful unity of our American work force and their local community,” DeMartini said. “This documentary highlights Skowhegan as our first Maine factory, but tells the success story of all New Balance manufacturing facilities and associates.”
It can be viewed on the firm’s Web site at www.newbalance.com/USA.
However, the firm’s focus on building a strong U.S. base hasn’t prevented New Balance from growing globally during the last decade. The privately held company, which had global sales of about $1.64 billion in 2008, has expanded its international footprint regularly during that span, the spokeswoman said, with about 4,000 employees now operating in more than 120 countries.
It has wholly owned subsidiaries in Australia, New Zealand, the United King- dom, Germany, Sweden, Hong Kong, Singapore, France, Mexico, Canada, Japan, Brazil and South Africa, making it one of the largest athletic footwear and apparel businesses in the world.
Humble beginnings
That’s quite a leap from the tiny business that William J. Riley, a 33-year-old English immigrant, launched in 1906 as New Balance Arch Co. It initially produced arch supports and prescription footwear for customers with problem feet. After operating out of his home for three years, Riley opened his first office as the firm slowly grew.
New Balance, with annual sales in the $20,000 range at the time, incorporated in 1931 and rented space at a door factory in Cambridge, Mass. But in the midst of the Great Depression, sales plummeted almost 75 percent.
In need of capital, Riley’s top salesman, Arthur Hall, became his partner, and the business survived as other footwear makers toppled. Riley designed and made the first New Balance running shoe in 1938, and by 1941 the company was designing and manufacturing custom sports shoes for running, baseball, basketball, tennis and boxing.
Riley and Hill sold the business in 1953 to Hill’s daughter and son-in-law, Eleanor and Paul Kidd, who brought new ideas and more energy to the firm.
They changed its name to New Balance Orthopedic Laboratory in 1956 and introduced the Trackster, the world’s first performance running shoe made in multiple widths, in 1960.
In 1970, the company became New Balance Athletic Shoe Inc., with annual sales of $100,000.
During the Boston Marathon in 1972, New Balance’s current owner, Jim Davis, purchased the business from the Kidds. Under his leadership, the firm expanded throughout the 1970s, 1980s and 1990s, both at home and abroad.
Davis and his wife Anne played key roles in turning the company into a billion-dollar operation with a long global reach during the last 37 years.
Expansions included: a manufacturing facility in Ireland; the production sites in Maine and Massachusetts; relocating the factory in Ireland to a bigger plant in England; and numerous acquisitions in the last decade.
By 2000, the company reached the $1 billion sales mark and has continued to grow since then.
Through it all, New Balance has never strayed from its roots with good reason, DeMartini said. “Our associates have passion and pride in their craftsmanship, and their dedication to their work is why we are able to withstand economic challenges and remain strong.”
source: By Mike McNulty Rubber & Plastics News Staff
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