We are pleased to bring you the latest edition of Sole Source!


It has been a dynamic year so far for USFMA. We had a record turnout for our Spring Meeting and congressional lobby day in Washington, added a slew of new members, and launched an aggressive outreach campaign for greater investments in the domestic footwear supply chain.   


The big news: Executive Director Bill McCann, working with the USFMA board, urged President Donald Trump in April to reinvest a portion of the revenue from new tariffs to help modernize and expand the domestic footwear industry.


McCann said the president’s landmark effort to reverse global trade imbalances offers a once in a generation opportunity to bolster the domestic footwear t supply chain which is critical for military readiness and national preparedness.


“Currently, U.S. footwear manufacturers produce approximately 25 million pairs of shoes annually — less than 1 percent of the 2.7 billion pairs sold in the United States each year,” McCann wrote in a letter to the president. “We believe our nation should initially aim to produce at least 5 percent of the footwear we purchase, or roughly 135 million pairs annually.”


USFMA estimates that “a one-time federal investment” of $5 billion would achieve that goal and create tens of thousands of “new, family-sustaining direct and indirect manufacturing jobs and significantly boost our national supply chain resilience,” according to McCann.


A new source of investment: Even prior to the president’s tariffs, levies on footwear imports were projected to generate $3.3 billion in 2025.


“Achieving the goal of rebuilding American footwear manufacturing requires significant capital investment, particularly in state-of-the-art manufacturing equipment,” McCann wrote. “USFMA proposes that a portion of tariff revenue generated from imported footwear be strategically reinvested to match private sector capital to modernize and expand domestic footwear production.”


The letter was also sent to the Secretaries of Defense, Commerce, and Treasury, and the United States Trade Representative.


“For the strength of our economy, for our ability to make things in America, and for the safety of our warfighters,” it concluded “we respectfully urge your Administration to support a manufacturing friendly tax code, reinvest tariff revenue from imported footwear to spur the production of domestic footwear, and ensure U.S. armed forces are equipped with best-in-class modern American-made footwear.”


Press room: The proposal generated some high-profile media attention, including a syndicated article in Footwear News, as well as other industry publications such as ECOTEXTILE News, and Fibre2Fashion. The letter also received coverage in POLITICO Pro’s Morning Trade newsletter. 


And kudos to Lalaland Production & Design CEO Alexander Zar for helping carry the association’s broader message to the masses. 


Zar said in an interview with Jake Tapper and CNN that tariffs "gave a jolt to the market to think about their supply chain," but many companies like his were already taking steps to prepare for future growth, including diversifying suppliers and embracing new manufacturing processes that are less labor intensive like 3D printing, 3D knitting and 3D bonding.


"I have been bombarded, to be honest with you, with every single major brand," Zar said. "I am more on the phone talking about the future about how we are going to onshore."


‘A very lofty goal’: But he stressed that "all of this needs technology investment...We don't have an industrial policy."


"You have to help the local manufacturer to be able to operate their system for the future technology, not what it was in the past," he continued. "If we don't have an industrial policy and just slap a tariff on the import that doesn't create the industry."


Currently, less than one percent of footwear purchased in the United States is produced domestically. "Our goal is within three years we will be able to onshore between 3 to 5 percent," Zar added. "That is a very lofty goal. That is 150 million pairs of shoes."


Read more about USFMA members: LA Footwear Innovators Say Tariffs Aren’t Enough to Spur a Reshoring Renaissance

USFMA SPOTLIGHT

‘GROWTH OPPORTUNITIES’: Meramec Group, a global leader in footwear component manufacturing based in Sullivan, Missouri, is positioning itself for future growth amid renewed interest in U.S.-based footwear production. 


Since it was founded in 1962, the company has been a pioneer in integral skin polyurethane technology, manufacturing outsoles, midsoles and insoles as well as providing custom polyurethane systems to the domestic footwear industry.


“At Meramec, we aren’t just expert molders, we are an innovative polyurethane developer,” said President Jeff Dieckhaus, a third-generation member of the family-owned business. “Our state-of-the-art blending facility allows us to create unique and exceptional materials that meet the demands of an ever-changing industry. We don’t buy ‘off the shelf’ systems, we tailor them to the needs of our customers, which makes us very unique”. 


With manufacturing facilities in the United States, China, and soon Vietnam, Meramec’s international footprint enables it to serve as a strategic partner to both domestic and global footwear brands.


“We’re optimistic that the resurgence of U.S. manufacturing will create growth opportunities for our domestic operations,” Dieckhaus told us. 


USFMA: What would you say is Meremec’s competitive advantage?


JD: Our greatest competitive advantage lies in our vertical integration. This agility allows us to respond rapidly to customer needs. If a customer requires production volumes that demand new equipment, we can design, develop, and install that machinery at a speed virtually unmatched in the industry. Not only do we possess the technical know-how to execute quickly, but we also have the infrastructure and capacity to scale.


USFMA: What do you believe it would take to spur greater domestic production?


JD: Domestic footwear production relies heavily on a skilled and dependable labor force. As such, any meaningful increase in U.S.-based manufacturing will require companies to invest in automation and attract talent with expertise in advanced technologies. At Meramec, our growth is closely tied to the ability of brands to expand their production capacity here in the United States.


One particularly promising area for rapid domestic growth is molded footwear—a sector in which we have experience. We’ve been manufacturing molded footwear in the U.S. for over 25 years, and that long standing expertise positions us well to support brands looking to reshore or scale that type of production quickly.


USFMA: Have you seen impacts from new tariffs? 


JD: Yes, the new tariffs are definitely having an impact—pricing pressures have increased noticeably, even for materials sourced domestically. What used to be typical increases of 3% to 5% have now jumped to 8% to 10%, which is well outside the norm. We're also finding ourselves competing in the U.S. market with major global players sourcing raw materials from domestic sources. 

  

While these shifts present challenges, they’re also pushing the industry to reevaluate long-standing supply chain models. There’s growing momentum around sourcing closer to home, and while that transition brings some short-term cost volatility, it also creates long-term opportunities for innovation, resilience, and local investment.


USFMA: What do you see as the biggest impediment to domestic growth?


JD: Meramec can manufacture your outsoles, midsoles, and insoles. You can source uppers, laces, and all the components that go into making a shoe. What’s still difficult—and really the biggest hurdle for domestic footwear production—is finding someone with enough scale and skilled labor to actually assemble the shoe.


Assembly is where things get challenging. It takes experienced hands to put all the parts together consistently and efficiently, and that kind of skilled labor is in short supply here in the U.S. Over the years, much of that expertise has shifted overseas, and we’re now in a position where the infrastructure exists in pieces, but not yet in a way that supports large-scale domestic production.


That said, there’s growing momentum. More brands are exploring reshoring options, and there’s a renewed interest in rebuilding this capacity locally. With the right investment in workforce development and training, I think we can get there—but it will take time and commitment from industry partners. 


USFMA: Can more advanced manufacturing processes or new technologies alleviate this?


JD: To some degree, yes. As an example, we’re constantly looking ahead to how we can streamline production and enhance efficiency. To that end, we’re currently in the process of installing a machine that will cut our labor requirements by 50%. Our focus is on reducing reliance on certain types of labor through innovation, allowing us to stay competitive in a changing market.


Ultimately, our goal is to reach a point where we’re hiring more people who can harness these advanced technologies. We’re investing more in robotics, and other cutting-edge tools like cameras and laser cutting machines to improve precision, speed, and overall efficiency. By embracing these technologies, we can not only reduce costs but also elevate the capabilities of our workforce, ensuring we remain at the forefront of industry advancements.


USFMA: Does that also mean developing new materials?


JD: Absolutely. As a vertically integrated company, we develop 100% of our polyurethane materials in-house to meet the precise requirements of our customers. We don’t use off-the-shelf systems or generic formulations. Every solution we deliver is purpose-built from the chemistry up, tailored to achieve the exact balance of performance, comfort, and durability needed for each customer.


Because we work exclusively with polyurethane, we’ve developed expertise in pushing the limits of what this versatile material can do. Our R&D teams are continuously innovating across formulation, processing, and testing to create PU systems that offer advanced energy return, cushioning, and lightweight strength.


For outsoles exposed to extreme environments—such as high abrasion, harsh temperatures, or prolonged wear—we engineer specialized PU systems with enhanced durability, thermal stability, and resistance to hydrolysis and chemical degradation.

Our vertical integration gives us full control over the development cycle—from raw material selection to final performance testing—which enables us to quickly prototype, iterate, and scale tailored solutions for our customers across the footwear industry.


USFMA: How is USFMA a force multiplier for domestic footwear growth?


JD: For several decades the domestic footwear industry has been a “survival-of-the-fittest” environment. With the new desire to make shoes close to home, we are eager to collaborate with other suppliers and brands who share a commitment to U.S.-made footwear. The question is, how can we help each other? How can we connect with the industry in new and meaningful ways?


The work that USFMA is doing on Capitol Hill is invaluable—championing our cause, bringing suppliers together, driving key messaging, and advocating for research and development support. Their efforts are helping to shape a positive environment for domestic growth.


At the end of the day, we all share the same goal: to incrementally grow U.S.-made footwear. If we were to achieve just 5% domestic production, the job creation and innovation that would follow would be remarkable. And that innovation wouldn’t be confined to footwear; it would ripple across a wide range of industries, benefiting the economy as a whole.



While we can’t control the pace of reshoring in the footwear industry, we can say one thing with certainty—Meramec is ready.

ON THE HILL

SPRINGING FORWARD: Our Spring Meeting brought together several dozen footwear manufacturers and suppliers from across the country to press members of Congress for common sense policies that will help fuel a renaissance in our industry.


“The domestic footwear industry has made enormous strides in recent years,” said McCann. “Ensuring our members’ voices are heard as the Trump administration and Congress craft new tax and trade policies will ensure that momentum continues – in the form of new U.S. companies, more domestic production by legacy brands, a stronger supply chain, and more good paying jobs here at home.”


Topping our agenda:


* Continued funding to develop a more robust military footwear supply chain that is less dependent on foreign sources.



* Eliminating the de minimis loophole that allows China and other non-market economies to avoid tariffs and other fees.


* Extending the research and development (R&D) tax credit and accelerating the rate at which investments in capital equipment can be expensed.


USFMA is taking a leading role in ensuring passage this year of the Better Outfitting Our Troops (BOOTS) Act. The legislation would close the loophole in the Berry Amendment that allows members of the armed forces to be outfitted with foreign-made combat boots, undermining domestic manufacturers. 


Meanwhile, USFMA policy chief Karlee Popken has taken the lead in ensuring the relevant committees on Capitol Hill are fully informed about trade and tax policies that could most help our membership.


Related coverage: U.S. Footwear Makers Push Washington to Prioritize 'Made in the USA'

MEMBERSHIP

‘A TRUE MILESTONE’: USFMA also welcomed Red Wing Shoe Co., a global leader in the design, production and distribution of safety and lifestyle footwear and work apparel, as its newest member, while COO Michael Noonan also joined our board of directors, underscoring the company’s signature role in expanding footwear manufacturing and innovation in the United States.


“Red Wing has been producing the highest quality work boots for men and women and other world- class footwear and accessories dating back to its founding in 1905 in Minnesota,” McCann said. “Red Wing joins USFMA at a historic time for our industry and marks a true milestone in our efforts to build new partnerships that are translating into state-of-the-art factories, testing facilities, and research hubs in cities and town across our country.”


He added “We are also looking forward to working closely with COO Mike Noonan as USFMA plans next steps in advocating for policies and investments that will strengthen domestic production of the yarns, foams, fabrics and finished products, and create more good paying jobs here at home that come with it.”


‘Fully committed’: Noonan said Red Wing “is fully committed to USA Manufacturing as a core strategic pillar of our flagship Red Wing brand.


“We know the value of creating fully designed and developed USA Made footwear and its unique ability to address the demands of key segments of the market and our consumer base. We are honored and pleased to be part of the USFMA.”


Growing roster: Red Wing follows the addition in recent months of Glacial Lakes Rubber & Plastics, Toray Performance Materials Corporation, American Sole, Koobz, Precision Testing Laboratories, and Z FAB USA INC as part of what McCann called “an increasingly vibrant community of domestic footwear producers and suppliers that is working together as never before to make Made in the USA not just a goal but reality."



Read more: USFMA adds Red Wing Shoe Company to growing roster of domestic footwear producers

EVENTS

TUNE IN: Join USFMA for a virtual update on the congressionally supported U.S. military footwear program on Monday, June 9, 2025, at 3:00 P.M. EST.


McCann will outline recent discussions with Army officials on the research and development phase of the current project and prospects for a follow-on investment in manufacturing equipment.


Please contact Karlee Popken for more details at karlee@strategicmi.com.


Army request: The briefing coincides with a new request for information issued by the Army’s DEVCOM Soldier Center “to identify potential sources interested in identifying footwear technology capabilities and/or advance manufacturing processes within their facilities.”


“The goal,” it adds, “is to improve capabilities for the domestic military footwear base.”

The deadline for submissions is Monday, June 16 at 5:00 PM EST. For more info, contact: wendy.k.johnson26.civ@army.mil and anita.a.perkins.civ@army.mil


HEADING SOUTH: USFMA will hold its 2025 Fall Meeting on Oct. 29-30 in Buford, Georgia, thanks to our hosts Okabashi.



“Our tradition of holding the Fall Meeting at a member facility started three years ago, thanks to the generosity of our friends at New Balance, Unifi, and KX Lab,’ said McCann. “We look forward to continuing that tradition with a visit that highlights the capabilities of our members and showcases the strength of domestic footwear production.”


Stay tuned for details on logistics, accommodations, and the meeting agenda. But don’t wait to save your spot. If you plan to attend, please email Karlee at karlee@strategicmi.com and LB Fullerton at lb@strategicmi.com.

Have company news to share? Want to flag an upcoming event or milestone? We want to hear from you. Please email Bryan Bender at bender@strategicmi.com.

Please follow us on LinkedIn to keep up to date on our latest activity.


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