Footwear Insight

16 • Footwear Insight ~ March/April 2018 footwearinsight.com Opportunities Abound in Fragmented Work Segment By Bob McGee T he lowering average age of today and tomorrow's indus- trial workers, along with the women's and international markets are all growth opportunities for the global industrial safety/work shoe market, projected to reach $7.8 billion in sales over the next six years as annual pairage surpasses 300 million by 2024, according to research firm Global Market Insights. Meanwhile, the mature and evolv- ing U.S. work market defied its typical 2-3 percent annual growth rate in 2017, increasing 6 percent to $1.1 billion, according to The NPD Group. Over the last decade, an influx of new category participants has created a mad scramble for share among established and emerg- ing segment players. But it has also breathed new life into the once tired, hardly-ever-changed category. And new brands competing to grab a percentage or two of the work footwear business are bringing something new to table—more fashionable looks and lighter-weighing fare, in many cases inspired by ath- letic shoes, while also providing the performance features needed in work footwear, including the steel toe and a slip-resistant outsole. A future best-case scenario would be more widespread adoption of these new styles for their joint work and street appeal. GMI ties its work category growth forecast to more hazardous work- places, increased regulatory standards established by the International Labor Organization (ILO), Occupational Safety and Health Administration (OSHA) and business standards company BSI, and shifting government policies on work- place safety in places such as the United Arab Emirates, South Africa and Saudi Arabia. Elsewhere around the world, the German industrial safety shoe market is forecast at $30 million annually by 2024 with more than 20 million pairs sold due to that country's expanding automotive industry; and Brazil and other South American markets will see increased demand for work footwear driven by the food processing industry and rapid indus- trialization in countries such as Columbia and Venezuela. "18- to 36-year olds are the main demo- graphic for the work category today," remarked Jerry Panowicz, sales manager for Atlanta-based PSS Distribution, which has marketed Puma Safety footwear in the U.S. for Germany-based ISM for the last seven years. Puma Safety is the fastest-growing work brand in Europe and the top-selling brand in both Germany and Romania, he says. Back in the U.S., Wolverine-owned Merrell is among the newcomers in work category, having launched an inaugural collection of boots and shoes last year for men and women that it described as an "outdoor-ready performance with work- tested protection." The work business contributed to Merrell's mid-single digit increase in FY17. Wolverine, with its licensed CAT, Wolverine, Hytest Safety, Bates and Merrell brands, trails only VF Corp. in sheer size of its work footwear and apparel portfolio. VF's $820 million cash acquisition of family-owned Williamson- Dickie Manufacturing last October nearly doubled the size of the company's work portfolio to 11 with the Dickies, Workrite, Kodiak, Terra and Walls brands added VFC's existing Wrangler, RIGGS, Timberland Pro, Red Kap, Bulwark and Horace Small labels. And Skechers, per- haps more known for its fashion athletic business, also has made inroads with its work footwear business. New York-based Eastland, which counts Boot Barn, Cabela's and Work 'n Gear among its retail partners, is the footwear licensee for Hi-Tec. A new collection ($90-$140 retail) available in August draws on the British brand's hiking heritage with its Forge Elite that incorporates work-performance features such as Kevlar-stitching in the toe area and the brand's IShield technology. Meanwhile, Keen, which has sold work footwear segment since 2010 and has regularly experienced 30 percent annual growth for its business since, has gained much of that momentum through style aesthetics and appealing to the traditional Keen outdoor footwear customer. Work styles account for approximately 25 per- cent of the Portland, OR company's total revenues. This fall, Keen is banking on its "younger looking" San Jose ($155 retail) with safety toe to draw new interest from the working set. In established work/ safety footwear circles, such as Union Pacific Railway workers, meanwhile, Keen creates posters for the employer that highlight styles that meet the job's spe- cific footwear requirements and tout the brand's "American Built" offerings. O "18- to 36- year olds are the main demographic for the work category today." Jerry Panowicz, sales manager for Atlanta-based PSS Distribution On the job (l to r): Wolverine workwear; Hi-Tec X-T Forge Elite Mid IWP boot. WORK BOOTS

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