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Wednesday, December 26, 2001

End of the shoemakers


Production follows cheaper foreign labor

By David Sharp
The Associated Press

        DEXTER, Maine — Shoppers looking to spend their Christmas dollars on goods carrying the “Made in the USA” label probably got sore feet if they were seeking shoes.

        A wave of closings of shoe factories in recent years means well-known brands like G.H. Bass and Cole Haan, both tied to Maine, are now made overseas.

        And just when it seemed domestic production couldn't sink much lower, Dexter, Saucony and Eastland are shuttering their plants in the nation's easternmost state.

        “For all intents and purposes, this type of manufacturing in Maine is dead,” said Bob Simpson, town manager in Dexter, where the Dexter Shoe Co. is laying off nearly 500 workers.

        Maine's shoe industry is a shadow of what it once was: The number of jobs peaked at nearly 27,000 in 1968 but now is about 3,500. Nationally, the shoe industry has gone from 235,000 jobs in 1972 to just 28,000, a drop of 88 percent, the U.S. Labor Department reported.

        An industry in which 98 percent of shoes were made in the United States in the late 1960s has undergone a complete reversal, with more than 90 percent of shoes now imported.

        While the United States isn't expected to cede all shoe production to other countries, the latest plant closings show the slide in domestic production is ongoing, said Bill Boettge of the National Shoe Retailers Association.

        Joining Dexter, Saucony and Eastland in announcing plant closings over the past year were Converse in North Carolina, Lacrosse Footwear in Wisconsin, and Rocky Shoes and Boots in Ohio.

        These days, shoppers are finding fewer shoes made in the United States. More likely, the shoes are made in China, Indonesia, Mexico or any number of countries with cheaper labor.

        “China manufactures more shoes than any other place in the history of the world. We'll never go to war against China because we'll be barefoot,” said John Stollenwerk of Allen-Edmonds, a manufacturer of high-end men's shoes that has four plants in Wisconsin and one in Maine.

        The reason for the plant closings is that the shoe industry remains a labor-intensive business despite strides in automation. Dozens of pairs of hands touch most shoes before they're boxed and sold.

        In Dexter, workers at Dexter Shoe's flagship factory felt a cloud hanging over them as they watched one company after another shut down and send production elsewhere.

        G.H. Bass and Cole Haan already had shut down their Maine plants in 1998 and 1999 and the trend caught up with Dexter a year ago with the closing of its Newport plant. This year, Dexter's Skowhegan plant closed and Eastland's Freeport plant closed.

        Saucony is closing its Bangor plant and Dexter is closing its main production center.

        Cindy Mountain, who has worked at Dexter for 17 years, expected cuts, but never thought the entire plant would shut down. Her husband has worked there for 25 years, since graduating from high school. They have two children.

        “I'm not going to sit down and cry about it,” she said. “It isn't going to get you anywhere to be depressed or feel sorry for yourself.”

        Mr. Simpson, the town manager, said the decision to close the plant was painful but inevitable. Workers are eligible for training assistance.

        “The other shoe has dropped, so to speak, so we can move forward,” he said.

        Against this gloomy backdrop, several shoe companies continue to thrive.

        While at a labor disadvantage, domestic manufacturers like Arkansas-based Munro & Co. do have the advantage of being able to respond faster than offshore factories to changes in the market.

        Munro closed two plants this year, but has 1,000 workers at its four remaining plants in Arkansas.

        Maine's Sebago is still up and running, too, with 360 workers in Westbrook and Bridgton making Docksides and other shoes.

        Dan Wellehan, president and chief executive, said he counts on customers who are willing to pay more for quality. And like Munro, he said his company can respond quickly compared to offshore plants.
       



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