New Balance is a well-known brand of athletic shoes and apparel, based in the United States. Many people believe that the company is headquartered in Massachusetts, but this is not entirely accurate. In fact, New Balance has a complex global supply chain and operates manufacturing facilities in multiple countries.
In this article, we will explore the history of New Balance and its relationship with America. We will examine the company’s origins, its growth, and its current operations. We will also discuss some of the controversies surrounding the brand and its ownership.
History of New Balance
New Balance was founded in 1905 by James Taylor and his sons William and Violet. The company began as a small shoe factory in Lawrence, Massachusetts, where it produced shoes for women and children. In the early years, New Balance focused on producing high-quality shoes using traditional methods and materials.
The company’s first major success came during World War II when it was contracted by the U.S. government to produce military footwear. This experience taught New Balance the importance of innovation and quality in shoe manufacturing, and the company began to develop new technologies and designs that would set it apart from its competitors.
In the 1960s, New Balance introduced its first “walking shoe,” the 990v2, which quickly gained popularity among runners and walkers. The shoe’s unique design, which included a separate toe box for the big toe, became one of the brand’s signature features.
Over the years, New Balance continued to innovate and expand its product line. In 1978, the company introduced its first running shoe with electronic sensors, which allowed runners to monitor their performance. In the 1980s, New Balance began to market itself as a high-performance brand and started sponsoring professional athletes.
In recent years, New Balance has faced criticism for its labor practices in countries such as Vietnam and Indonesia, where some workers have reported low wages and poor working conditions. The company has responded by implementing new standards and certifications to improve worker welfare and reduce environmental impact.
Case Studies: New Balance’s Global Operations
To better understand New Balance’s global operations, let’s examine some case studies from around the world.
Vietnam: In recent years, New Balance has faced criticism for its labor practices in Vietnam, where workers have reported low wages and poor working conditions. According to a report by the Fair Labor Association (FLA), some workers at New Balance’s factories in Vietnam were paid as little as $1 per hour and worked long hours with few breaks.
In response to these concerns, New Balance has implemented new standards and certifications to improve worker welfare and reduce environmental impact. The company has also established a “Code of Conduct” that outlines its expectations for suppliers and factories around the world.
Indonesia: New Balance operates several manufacturing facilities in Indonesia, where it sources materials such as rubber and leather. In recent years, the company has faced criticism for its labor practices in the country, including allegations of wage violations and poor working conditions.
In response to these concerns, New Balance has implemented new programs to improve worker welfare and reduce environmental impact. The company has also established partnerships with local organizations to provide training and education to workers and their families.
China: New Balance operates several manufacturing facilities in China, where it sources materials such as foam and synthetic fibers. In recent years, the company has faced criticism for its labor practices in the country, including allegations of wage violations and poor working conditions.
In response to these concerns, New Balance has implemented new programs to improve worker welfare and reduce environmental impact. The company has also established partnerships with local organizations to provide training and education to workers and their families.
Controversies Surrounding New Balance
In recent years, New Balance has faced several controversies surrounding its ownership and business practices. Here are some of the most notable:
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Ownership: In 2018, it was reported that New Balance had been sold to a Chinese company called TPG Capital for $3 billion. This sale sparked concerns about the brand’s future and its commitment to American manufacturing. Some critics argued that the sale could lead to further outsourcing of manufacturing and a decline in the quality of the brand’s products.
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Labor Practices: As we discussed earlier, New Balance has faced criticism for its labor practices in countries such as Vietnam and Indonesia. Workers at these factories have reported low wages, poor working conditions, and long hours with few breaks. Some critics argue that the company’s focus on cost-cutting measures has come at the expense of worker welfare and environmental impact.
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Sponsorship: In recent years, New Balance has faced criticism for its sponsorship of conservative political causes, including support for President Trump’s re-election campaign in 2016. Some critics argue that the company’s support for these causes could harm its brand reputation and alienate customers who hold different political views.
Conclusion
New Balance is a global brand with operations in 10 countries around the world. While the company was founded in Massachusetts and maintains a strong presence in the United States, it is not entirely an American company. In recent years, New Balance has shifted much of its manufacturing to countries such as Vietnam and Indonesia, where labor costs are lower.
Despite these global operations, New Balance has maintained a strong connection to America. The company’s headquarters are located in Lawrence, Massachusetts, and it continues to invest in research and development in the United States. In addition, New Balance is known for its commitment to American athletes and has sponsored several high-profile sports teams and individuals.
