NONRUBBER FOOTWEAR QUARTERLY STATISTICAL REPORT

Report to the Senate Committee on Finance on Investigation No. 332-191, Under Section 332 of the Tariff Act of 1930

USITC PUBLICATION 1706

JUNE 1985

United States international Trade Commission / Washington, DC 20436

UNITED STATES INTERNATIONAL. TRADE COMMISSION

COMMISSIONERS

Paula Stern, Chairwoman

Susan W. Liebeler, 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 Vern Simpson, Acting Director

Address all communications to

Kenneth R. Mason, Secretary to the Commission United States International Trade Commission

Washington, DC 20436

CONTENTS

Page

Information on the nonrubber footwear investigation, No. TA-201-55 1 Summary highlights of economic conditions in the nonrubber footwear

industry in the first calendar quarter of 1985-- 2

Statistical tables

1. Nonrubber footwear: Quantity of U.S. production, imports for consumption, and apparent consumption, by quarters, 1983 -85 ------ 4

2. Nonrubber footwear: Value of U.S. producers' shipments, imports for consumption, and apparent consumption, by quarters, 1983-85-- 5

3. Nonrubber footwear: Average number of employees, total and production workers, by months, January 1983-March 1985----- A

4. Nonrubber footwear: U.S. production, imports for consumption, exports of domestic merchandise, apparent consumption, average number of employees, total and production workers, and unemployment rate, 1970-84- 7

5. 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, by months, January 1983-March 1985 ----

6. Nonrubber footwear: Quantity of U.S. imports for consumption, by

principal sources, January-March of 1983-85, and annual 1983-84 7. Nonrubber footwear: Value of U.S. imports for consumption, by

principal sources, January-March of 1983-85, and annual 1983-84- ---

8. Nonrubber footwear: Average unit value of U.S. imports for consumption, by principal sources, January-March of 1983-85, and annual 1983-84--- -

Nonrubber footwear: U.S. imports and percentage distribution of shipments, by types and by price ranges (per pair), 1982-84, January-March 1984-85

12 Certain rubber footwear: Quantity of U.S. imports for consumption, by principal sources, January-March of 1983-85, and annual 1983-84

14 Certain rubber footwear: Value of U.S. imports for consumption, by principal sources, January-March of 1983-85, and annual 1983 -84-

Certain rubber footwear: Average unit value of U.S. imports for consumption, by principal sources, January-March of 1983-85, and annual 1983-84

Nonrubber footwear: Quantity of U.S. exports of domestic merchan-dise, by principal markets, January-March of 1983-85, and annual 1983-84

Nonrubber footwear: Value of U.S. exports of domestic merchandise, by principal markets, January-March of 1983-85, and annual 1983-84

Nonrubber footwear: Average unit value of U.S. exports of domestic merchandise, by principal markets, January-March of 1983-85, and annual 1983-84

8

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1 1 9.

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11.

12.

13.

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15

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19 20

Information on the Nonrubber Footwear Investigation, No. TA-201-55

On January 22, 1985, the U.S. International Trade Commission instituted

an investigation on nonrubber footwear, TA-201-55, effective December 31,

1984, following receipt of a resolution by the Senate Committee on Finance.

The Committee's resolution requested an investigation under section 201(b)(1)

of the Trade Act of 1974 to determine "whether increasing imports of nonrubber

footwear are substantial cause of serious injury or the threat thereof to the

domestic industry producing a like or directly competitive product." The

Committee stated that good cause existed to undertake a new investigation

under section 201(e) of the Act, citing the amendments to section 201 which

were adopted in 1984 and the continuing growth in imports "to unprecedented

levels, causing distress in the domestic industry." 1/

On May 22, 1985, the Commission determined that imports of nonrubber

footwear are being imported into the United States in such increased quantities

as to be a substantial cause of serious injury, or threat thereof, to the

domestic industry. The Commission will announce its remedy recommendations at

a public meeting during the week of June 9, 1985. It is scheduled to submit

its findings and recommendations to the President by July 1, 1985.

1/ This investigation follows by less than one year the report transmitted by the Commission to the President in investigation No. TA-201-50, Nonrubber Footwear. In that case, which was instituted in response to a petition by Footwear Industries of America, Inc., the Amalgamated Clothing and Textile Workers Union, AFL-CIO, and the United Food and Commercial Workers Union, AFL-CIO, the Commission unanimously determined that nonrubber footwear was not being imported into the United States in such increased quantities as to be a substantial cause of serious injury to the domestic industry.

2

Summary Highlights of Economic Conditions in the Nonrubber Footwear Industry in the First Calendar Quarter of 1985

U.S. production.---Preliminary data indicate that domestic production of nonrubber footwear during the first quarter of 1985 declined by 23 percent from that in the corresponding period of 1984 to 66 million pairs (table 1).

U.S. producers' shipments.--Preliminary data show that producers' nonrubber footwear shipments in the first quarter of 1985 amounted to $816.6 million, 23 percent less than those in the year-earlier period (table 2).

U.S. imports.--U.S. imports of nonrubber footwear in January-March 1985 rose by 13 percent over those in the corresponding period of 1984 to 218.3 million pairs (table 6). In terms of the value, imports also increased by 13 percent to $1.3 billion (table 7). Imports from Taiwan, the largest supplier, increased by 20 percent during the period to 97.8 million pairs (valued at $413 million). Those from Brazil increased by 24 percent to 33.3 million pairs ($246 million), whereas imports from Korea declined by 20 percent to 25.8 million pairs ($182 million).

U.S. exports.--U.S. exports in January-March 1985 totaled 2.4 million pairs ($25 million), an increase of 53 percent over those in January-March 1984 (tables 13 and 14).

Apparent U.S. consumption.--Preliminary data indicate that apparent consumption of nonrubber footwear in January-March 1985 rose by 2 percent in quantity but declined by 4 percent in value from the levels in the corresponding period of 1984 to 281.9 million pairs, valued at $2.1 billion (tables 1 and 2).

Ratio of imports to consumption.---First quarter data for 1985 show that the quantity of imports accounted for 77 percent of U.S. consumption, compared with 70 percent in the corresponding period of 1984 (table 1). In terms of value, imports captured 62 percent of the market in the 1985 period, compared with 53 percent during the 1984 period (table 2).

Prices.--During the first quarter of 1985, the Producer Price Index for footwear increased 1 percent and the Consumer Price Index increased 2 percent over the same period a year ago (table 5).

Employment and unemployment rate. --Preliminary data show that the number of persons employed in the U.S. nonrubber footwear industry during the first quarter of 1985 declined by 13 percent from that in the corresponding period of 1984 to 108,700 persons. The unemployment rate in the leather and leather products industry remained unchanged during the period at 15 percent (table 5). 1/

1/ Data on monthly unemployment rates are subject to considerable fluctuation because of the small sample used and, consequently, should be used with caution.

3

Price range trend of U.S. imports. --In January-March 1985, a significant increase occurred in imports of footwear valued under $1.25 per pair, especially of women's and misses' plastic footwear. Sizable increases also occurred in the more expensive categories, consisting primarily of leather athletic and women's and misses' leather footwear (table 9).

Imports of certain rubber footwear.--Imports of rubber footwear with fabric uppers and soles of rubber or plastics, another sector of the footwear industry, including sneakers, joggers, and certain casual shoes and slippers, decreased by 33 percent in the first quarter of 1985 from those in the year-earlier period to 25 million pairs ($57 million).

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IMPORTSICONSUMPTION

Million pair

s

' 20 Nonrubber footwear: U.S. production and imports for consumption, 1970-84

d

725.9

• 7 .

.

. .

.

,

6

...

296.9

S

a-

78 71 72 73 74 75 76 77 76 78 69 61 62 66 64

I.-. PRODUCTION • • • • IMPORTS

Nonrubber footwear: Ratio of imports to consumption, in terms of quantity, 1970-84

898.

688.

533.

489.

288.

133.

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

1 Million pairs

21

Million dollars

Nonrubber footwear: Quantity of U.S. production and imports for consumption, by quarters, 1983-85

.

.. . .

4 •

218.3 r

. . • .

55

. . . .

. . . .

. . .

. . . .

. . .

•

. .

le.

. . .. •

i

66.0

I 1

I 2

1883

I 9

1 4

I 1

I 2

1884

I 9

1 4 1

1866 • PRODUCTION

• • • • • " IPPCRTS

Nonrubber footwear: Value of U.S. producers' shipments and imports for consumption, by quarters, 1989-85

.

• . .

. . .

. •

• .

.

•

. . .

. .

$2,087.2 P

• .

• me

* .

•

1;

.

. •

• •

.

$816.6

728

S80 — 1 1

1 2

128s

1 3

1 4

1 1 1

I 2

1064

1 9

1 4

I I I

1868

r"--". PRODUCERS stamens

a' • • ' wows

1.

1.

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

22

Nonrubber footwear: Ratio of imports co consumption, in terms of quantity, by quarters, 1982-85

Nonrubber footwear: Ratio of imports to consumption, in terms of value, 1982-85

108

a a. 48

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

sou

rces,

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er

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24 Unemployment rate for the leather and leather products industry 1/, by quarters,

1983-85

i

a

15.0 6

8

S

a

i 2 1 i i

1883

3 F 1 4 1 2

1884

I 3 1 4 1

1986

1.--i' Unemployment rate

1/ Approximately two-thirds of the workers in the leather and leather products industry are nonrubber footwear workers, for whom separate data are not available.

Average number of all employees engaged in the manufacture of nonrubber footwear, by quarters, 1983-85

2i

EMPLOYEES

Source: Prepared by the U.S. International Trade Commission, Office of Industries, from official statistics of the U.S. Bureau of Labor Statistics.

1

O

a

0 0 71 0 o.

25

0 0

Pruducer Price Index for footwear (BLS code 043), by quarters, 1983-85

268

268

w.

254.8 •

252

. 0*".. p. ......... se

.... ..*.7..

....

......... le ... ' ........ . *•.. ... .... • 8..

248

244

244- I i 1 2

14183

I I I 3 4 I i

2

1484

i 3

i 4

i 1

1485

• PRODUCER PRICE .13180

Consumer Price Index for footwear of leather and nonleather, by quarters. 1983-85

212

210.6

243

r I

I 2

1489

1 3

1 1 4

1 1

1 2

1484

1 9

I 4

1 I 1

161114

• -• CONSUMER PRICE DICEY

Source: Prepared by the U.S. International Trade Commision, Office of Industries, from official statistics of the U.S. Bureau of Labor Statistics.