NONRUBBER FOOTWEAR QUARTERLY STATISTICAL REPORT

Report to the Senate Committee on Finance on Investigation No 33 2-191, Under Section 3 3 2 of the Tariff Act of 1930

USITC PUBLICATION 2044

DECEMBER 1987

United States International Trade Commission / Washington, DC 20436

UNITED STATES INTERNATIONAL TRADE COMMISSION

COMMISSIONERS

Susan Liebeler, Chairman Anne E. Brunsdale, Vice Chairman

Alfred E. Eckes Seeley G. Lodwick

David B. Rohr

This report was prepared principally by J. Gail Burns

Textiles, Leather Products, and Apparel Division

Office of Industries Erland Heginbotham, Director

Address all communications to Kenneth R. Mason, Secretary to the Commission

United States International Trade Commission Washington, DC 20436

CONTENTS

Page

Highlights 1 Charts 3

Statistical tables

1. Nonrubber footwear: U.S. production/value of producers' shipments, imports for consumption, exports, and apparent consumption, 1980-86 and, by quarters, 1985-87 5

2. Employment in the U.S. nonrubber footwear industry, unemployment rate for the leather and leather products industry (SIC 31), Producer Price Index for footwear (BLS code 043), and Consumer Price Index for footwear of leather and nonleather, 1980-86 and, by quarters, 1985-87 6

3. Nonrubber footwear: Quantity of U.S. imports for consumption, by principal sources, January-September 1985-87, July-September 1985-87, and annual 1985-86 7

4. Nonrubber footwear: Value of U.S. imports for consumption, by principal sources, January-September 1985-87, July-September 1985-87, and annual 1985-86 8

5. Nonrubber footwear: Average unit value of U.S. imports for consumption, by principal sources, January-September 1985-87, July-September 1985-87, and annual 1985-86 9

6. Rubber footwear: U.S. production, imports for consumption, exports, and apparent consumption, 1980-86 and, by quarters, 1986-87 10

7. Fabric-upper footwear with rubber or plastic soles: Quantity of U.S. imports for consumption, by principal sources, January-September 1985-87, July-September 1985-87, and annual 1985-86 11

8. Fabric-upper footwear with rubber or plastic soles: Value of U.S. imports for consumption, by principal sources, January-September 1985-87, July-September 1985-87, and annual 1985-86 12

9. Fabric-upper footwear with rubber or plastic soles: Average unit value of U.S. imports for consumption, by principal sources, January-September 1985-87, July-September 1985-87, and annual 1985-86 13

10. Protective footwear: Quantity of U.S. imports for consumption, by principal sources, January-September 1985-87, July-September 1985-87, and annual 1985-86

11. Protective footwear: Value of U.S. imports for consumption, by principal sources, January-September 1985-87, July-September 1985-87, and annual 1985-86 15

12. Protective footwear: Average unit value of U.S. imports for consumption, by principal sources, January-September 1985-87, July-September 1985-87, and annual 1985-86 16

13. Nonrubber footwear: Quantity of U.S. exports of domestic merchan-dise, by principal markets, January-September 1985-87, July-September 1985-87, and annual 1985-86 17

14. Nonrubber footwear: Value of U.S. exports of domestic merchandise, by principal markets, January-September 1985-87, July-September 1985-87, and annual 1985-86 18

15. Nonrubber footwear: Average unit value of U.S. exports of domestic merchandise, by principal markets, January-September 1985-87, July-September 1985-87, and annual 1985-86 19

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HIGHLIGHTS

U.S. production.-4reliminary data indicate that domestic production of nonrubber footwear during the third quarter of 1987 increased by 12 percent compared to the corresponding period of 1986 to 64 million pairs (table 1). Preliminary data show that the value of U.S. producers' shipments increased by 6 percent to $1.1 billion.

U.S. imports.--U.S. imports in the third quarter of 1987 totaled 222 million pairs, valued at $1.9 billion, representing a 5-percent decline in quantity, but an 8-percent gain in value from a year ago (tables 3 and 4). Imports from Taiwan, the largest supplier, declined by 9 percent in quantity to 102 million pairs, but increased by 10 percent in value to $630 million. Shipments from Korea, the second largest source, totaled 50 million pairs, valued at $420 million, representing a decrease of 2 percent in quantity, but an increase of 7 percent in value. Imports from Brazil, the third largest supplier, though falling by 16 percent in quantity to 25 million pairs, increased by 12 percent in value to $258 million. Imports from Italy fell by 21 percent in quantity and 9 percent in value to 8 million pairs, valued at $224 million. By contrast, shipments from China and Hong Kong showed a substantial growth in both quantity and value. Imports of nonrubber footwear from China climbed 76 percent in terms of quantity and more than doubled in terms of value to almost 10 million pairs, valued at $25 million. Imports from Hong Kong totaled 7 million pairs, valued at $34 million, representing increases of 11 percent in volume and 31 percent in value.

U.S. exports.--U.S. exports in the third quarter of 1987 totaled 3.8 million pairs, valued at $44 million, representing increases of 13 percent in quantity and 34 percent in value from year ago levels (tables 13-15).

Apparent U.S. consumption.--Preliminary data indicate that apparent consumption of nonrubber footwear in the third quarter of 1987 increased by 2 percent from the year-earlier level to 283 million pairs, valued at $2.9 billion (table 1).

Ratio of imports to consumption.--Preliminary data for the third quarter of 1987 show that imports' share of the U.S. nonrubber footwear market was 79 percent in terms of quantity and 63 percent in terms of value. This is down from the year-earlier period when imports accounted for 81 percent of the quantity and 64 percent of the value (table 1).

Prices.--Both the Producer Price Index and the Consumer Price Index for footwear in the third quarter of 1987 increased by 3 percent from their year-earlier levels (table 2).

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Employment and unemployment rate.--Preliminary employment data show that the total number of persons employed in the U.S. nonrubber footwear industry during the third quarter of 1987 declined by less than 1 percent from that in the corresponding period of 1986, averaging 90,100 persons (table 2). The unemployment rate in the leather and leather products industry 1/ during the third quarter of 1987 was 11.5 percent, compared with 15 percent in the corresponding period of 1986. 2/

Rubber footwear.--Preliminary data indicate that, during the third quarter of 1987, U.S. production of footwear with fabric uppers and soles of rubber or plastics, including sneakers, joggers, and certain casual shoes, increased by 6 percent over the corresponding 1986 level to 17 million pairs. Imports increased by 25 percent to 27 million pairs, or 62 percent of the U.S. market (table 6).

Preliminary data show that U.S. production of protective footwear declined by 13 percent during the period to 2.8 million pairs. Imports rose by 3 percent to 3.8 million pairs. Consequently, their share of the U.S. market reached a record 58 percent. (table 10).

1/ Approximately two-thirds of the workers in this industry are nonrubber footwear workers, for whom separate data are not available. 2/ Data on monthly unemployment rates are subject to considerable fluctuation because of the small sample used and, consequently, should be used with caution.

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1000

900

800

700

600

500 T

400

300

200

100 +

f► 1 U.S. production

U.S. imports

i p la 1 i it o s n

0

-3-

Nonrubber footwear: U.S. market shares, by quantity, January—September 1987

II U.S. production

Taiwan

OB Korea EB Brazil

Italy

II China Hong Kong

Spain

All other imports

Nonrubber footwear: U.S. production and imports for consumption, 1976-86

1976 1977 1978 1979 1980 1981 1982

1983

1984

1985

1986

Year

Source: Prepared by the U.S. International Trade Commission, Office of Industries, from official statistics of the U.S. Department of Commerce.

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N

3000

. 2500

1 1 . 2080 1

1500

X

Nonrubber footwear: Quantity of U.S. production, imports for consumption, and apparent consumption, by quarters,

1985-87

358

300

250

1 *-. i 200

n 150

p

1 188

r 58

-° U.S. production

U.S. imports

Apparent consumption

0 1st 2nd 3rd 4th 1st 2nd 3rd 4th 1st 2nd 3rd

Quarter

Nonrubber footwear: Value of U.S. producers' shipments, imports for consumption, and apparent consumption, by

quarters, 1985-87

*

O• "4*

• 4- — /

Producers' shipments

U.S,- imports

Apparent consumption

8 1st 2nd 3rd 4th 1st 2nd 3rd 4th 1st 2nd 3rd

Source: Prepared by the U.S. International Trade Commission, Office of Industries, from official statistics of the U.S. Department of Commerce. 4

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Table 1.--Nonrubber footwear: U.S. production/value of producers' shipments, imports for consumption, exports, and apparent consumption, 1980-86, and by quarters 1985-87

(Quantity in millions of pairs; value in millions of dollars)

Percentage change from year-earlier pei. iod

Period

Ratio Production/ Apparent (percent) Production/ Apparent shipments Imports Exports consumption of imports shipments Imports Exports consumption

to consumption

Quantity

1980 386.3 365.7 13.0 739.0 49 -3 -10 40 -7 1981 372.0 375.6 11.2 736.4 51 -4 3 -14 0 1982 359.1 479.6 8.8 829.9 58 -3 28 -21 13 1983 339.2 581.8 7.4 913.6 64 -6 21 -16 10 1984 303.2 725.9 8.8 1,020.3 71 -11 25 19 12 1985 265.1 842.7 11.3 1,096.5 77 -13 16 28 7 1986 241.4 940.8 12.4 1,169.8 80 -9 12 10 7

1985: 1st quarter 65.8 218.3 2.4 281.7 77 24 13 53 1 2nd quarter 68.3 212.8 2.4 278.7 76 -16 14 14 5 3rd quarter 66.7 217.2 3.3 280.6 77 -7 3 79 1 4th quarter 64.7 194.4 3.2 255.9 76 -4 45 16 29

1986: 1st quarter 63.2 272.4 2.3 333.3 82 -4 25 -4 18 2nd quarter 57.7 219.1 3.5 273.3 80 -16 3 46 -2 3rd quarter 57.3 235.2 3.3 289.2 81 -14 8 0 7 J 4th quarter 55.6 214.1 3.2 266.5 80 -14 10 0 4 1987: 1st quarter* 55.0 261.2 3.5 312.7 84 -13 -4 52 -o 2nd quarter* 56.8 244.8 3.2 298.4 82 -2 12 -9 9 3rd quarter* 64.4 222.4 3.8 283.0 79 12 -5 13 -2

Value

1980 4,619.9 2,298.3 112.0 6,806.2 34 8 5 59 3 1981 3,816.8 2,479.9 120.2 6,176.5 40 -17 8 7 -9 1982 4,802.3 3,083.9 101.6 7.784.6 40 26 24 -15 26 1983 4,758.6 3,662.0 90.0 8,330.6 44 -1 19 -ii 7

1984 4 426 2 4,651.4 97.3 8,980.3 52 -7 27 8 8 1985 3,956.2 5,425.7 99.6 9,282.3 58 - 11 17 2 - , 1986 3,619.4 6,175.4 117.7 9,677.1 64 -9 14 18 4

1985: 1st quarter 915.2 1,295.9 25.3 2,185.8 59 -20 13 23 -4 2nd quarter 927.0 1,154.5 24.1 2,057.4 56 -16 _ 10 -2 -3 3rd quarter 1,073.9 1,573.9 26.2 2,621.6 60 -6 6 3 1 4th quarter 1,040.3 1,401.3 24.0 2,417.6 58 0 44 -10 - 22 1986: 1st quarter 867.8 1,552.7 21.4 2,399.1 65 -5 20 -15 10 2nd quarter 767.3 1,389.8 28.4 2,128.7 65 -17 20 ,t; 18 3 3rd quarter 1,006.0 1,726.3 32.5 2,699.8 64 -6 10 24 3 4th quarter 978.3 1,506.4 35.4 2,449.3 62 -6 8 48 1 1987: 1st quarter* 864.4 1,576.0 37.7 2,402.7 66 0 2 76 0 2nd quarter* 894.9 1,675.9 37.6 2,533.2 66 17 21 32 19 3rd quarter* 1,065.6 1,868.1 43.6 2,945.1 63 6 8 34 9

Source: Compiled by the U.S. International Trade Commission, Textiles Division, from official statistics of the U.S. Department of Commerce.

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Table 2.--Employment in the U.S. nonrubber footwear industry, unemployment rate for the leather and leather products industry (SIC 31), Producer Price index for footwear (BLS code 043). and Consumer Price index for footwear of leather and nonleather, 1980-86, and by quarters 19B5-87

Employment Precentage change from

year-earlier period

Producer Consumer

Price Price Total Production Total Production Unemployment Index Index

Period workers employment workers rate** (1967=100)

----Thousands---- ---Percent---

1980 143.6 122.9 -4 -4 7.7 233.1 190.3 1981 1982

146.4 135.1

125.9 115.1

2 -8

2 -9

12.5 16.8

240.9 245.0

200.4 205.5

1983 127.4 108.5 -6 -6 17.8 250.1 206.9 1984 114.8 97.6 -10 -10 14.4 251.2 209.5 1985 1986*

100.0 92.5

84.6 78.3

-13 -8

-13 -7

12.2 13.7

257.0 261.9

212.2 211.3

1985: 1st quarter 100.1 84.1 -17 -18 15.0 254.8 210.8 2nd quarter 100.5 84.9 -16 -17 10.9 255.4 213.4 3rd quarter 99.3 84.4 -11 -11 9.7 258.3 210.9 4th quarter 99.9 85.0 -6 -6 13.1 259.2 213.6

, 1986: 1st quarter 95.6 80.8 -4 -4 13.9 260.5 209.0 2nd quarter 93.3 79.0 -7 -7 13.1 261.6 211.0 3rd quarter 90.5 76.6 -9 -9 15.0 261.8 210.2 4th quarter 90.5 76.8 -9 -10 12.6 263.6 214.7 1987: 1st quarter* 88.6 75.4 -7 -7 12.5 265.0 212.5 2nd quarter* 88.3 76.2 -5 -4 11.1 264.9 219.6 3rd quarter* 90.1 78.0 1/ 2 11.5 270.3 216.4

iPreriminary. **The unemployment data are for the leather and leather products industry. Approximately two-thirds of the workers in this industry are nonrubber footwear workers, for whom separate data are not available.

1/ Less than 0.5 percent.

Source: Compiled by the U.S. International Trade Commission, Textiles Division, from official statistics of the U.S. Department of Labor, Bureau of Labor Statistics.

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Table 6.--Rubber footwear: U.S. production, imports for consumption, exports, and apparent consumption, 1980-86 and, by quarters 1986-87

(Quantity in millions of pairs)

Percentage change from year-earlier period

Ratio

Apparent (percent) Apparent Production Imports Exports consumption of imports Production Imports Exports consumption

to consumption

Fabric-upper footwear with rubber or plastic soles

Period

1980 97.5 120.8 1.7 216.6 56 -3 -10 41 -1 1981 95.4 137.6 1.6 231.4 59 -2 14 -6 7 1982 92.9 98.0 1.6 189.3 52 -3 -29 0 -18 1983 78.1 102.5 1.2 179.4 57 -16 5 -25 -5 1984 62.8 107.7 1.1 169.4 64 -20 5 -8 -6 1985 55.4 84.8 0.8 139.4 61 -12 -21 -27 -18 1986 55.6 99.0 1.0 153.6 64 0 17 25 10

1986: 1st quarter 14.9 29.5 0.2 44.2 67 -9 19 85 8 2nd quarter 14.9 26.8 0.4 41.3 65 -7 11 129 3 3rd quarter 15.5 21.3 0.2 36.6 58 26 24 -5 25 4th quarter 10.3 21.4 0.2 31.5 6B -5 16 -44 9 1987: 1st quarter* 16.6 33.0 0.3 49.3 67 11 12 50 12 2nd quarter* 19.7 31.8 0.2 51.3 62 32 19 -50 24 3rd quarter* 16.5 26.7 0.2 43.0 62 6 25 0 17

Protective footwear

1980 14.5 7.6 0.7 21.4 36 8 5 59 3 1981 10.6 7.5 0.6 17.5 43 1 ' -4I -1 -14 -18 1982 13.9 11.1 0.4 24.6 45 31 48 -33 41 1983 15.5 13.5 0.3 28.7 47 12 22 -25 17 1984 17.5 16.0 0.3 33.2 48 13 19 0 16 1985 16.5 12.8 0.4 28.9 44 -6 -20 33 -13 1986 14.3 10.7 0.5 24.5 44 -13 -16 25 -15

1986: 1st quarter 3.5 1.8 0.2 5.1 35 -18 -34 194 -26 2nd quarter 3.4 1.9 0.1 5.2 37 -17 -19 -23 -19 3rd quarter 3.2 3.7 0.1 6.8 54 -3 -25 1 -29 4th quarter 4.3 3.3 0.1 7.5 44 -10 16 8 6 1987! 1st quarter* 3.1 1.4 0.1 4.4 32 -11 -22 -50 -14 2nd quarter* 4.1 2.4 0.1 6.4 38 21 26 0 23 3rd quarter* 2.8 3.8 0.1 6.5 58 -13 3 0 -4

Wiriminary.

Source: Compiled by the U.S. International Trade Commission, Textiles Division, from official statistics of the U.S. Department of Commerce.

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