Slow Productivity Growth in the U.S. Footwear Industry--Can the Federal Government Help?

Since the late 1960's U.S. footwear manufacturers have experienced a steady economic decline. In the 10 years between 1968 and 1978, domestic shoe production dropped 37 percent, imports rose 106 percent, and nearly 76,000 people lost their jobs. The number of shoe manufacturing firms decreased by almost half from 1967 to 1977. GAO undertook a study of the footwear industry to explore the effects of recent importing, buying, and manufacturing trends on one American industry. The objectives of the study were (1) to identify the causes of the industry's economic decline and determine if the decline was related to low productivity; and (2) to ascertain what competitive advantages foreign manufacturers had and how the Federal Government could help U.S. footwear manufacturers improve their productivity.