The Footwear Distributors and Retailers of America (FDRA), America’s largest and most respected footwear trade association, partnered with the firm Elevate to produce its 5th Factory Survey Analysis. The recently completed report provides in depth data and analysis on social compliance issues impacting the footwear industry.
Some takeaways from the report
FDRA’s survey reveals a strong sense of optimism amongst factories about their business prospects, but it also indicates that they are facing challenges related to seasonal production fluctuations, raw material costs and shrinking labor pools. An increasing number of factories cope with some of these challenges by providing longer working hours to workers as well as hiring juvenile workers and workers of retirement age coping strategies that increase the risk of non-compliance with the social performance requirements of buyers. Wages also continue to be one of the top challenges for Chinese footwear manufacturers. Of the surveyed factories, 11 percent do not pay legal minimum wage.
Like in years past, the survey provided a much-needed insight into the hindrances and progress made by the Chinese footwear manufacturing industry. Appropriate action and efforts from FDRA, buyers and manufacturers will be required to ensure that factories understand the importance of continuous improvement and strive to drive positive change throughout the supply chain.
Founded in 1944 by the footwear industry, FDRA represents and serves the entire width of the footwear industry from small family owned footwear businesses to global footwear companies. It also represents and serves the full supply chain of the footwear industry from research, design and development, to manufacturing and distribution, to retailers selling to consumers all over the globe. It supports more than 100 companies and over 200 brands.