A factory in Shepherdsville, Kentucky, reliant on automation, looks to help a shoe manufacturer navigate tariffs and labor shortages.
The Wall Street Journal reported that Keen Footwear recently closed its facility in Portland, Oregon, with plans to relocate production to a 60,000-square-foot site in the Bluegrass State, scheduled to open next month. The company expects the new location to nearly double its domestic output and credits that growth to increased automation.
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Keen noted that the Kentucky plant’s automation would support the 24 workers it plans to initially hire. According to the Journal, the machinery would handle mundane tasks, allowing the employees to focus on more detailed work. The report mentioned that Keen plans to expand its payroll as it increases production.
The development arrives at a timely moment amid U.S. President Donald Trump’s multiple tariff threats. However, the Journal reported that Keen Chief Operating Officer Hari Perumal said the decision to invest in U.S. manufacturing predates the latest trade war drama.
Founded in 2003, Keen began domestically producing footwear in 2010 in response to rising Chinese manufacturing costs and a desire to diversify sourcing.
Keen has since shifted production of its hiking shoes, thick-soled sandals and work boots out of China. Now, the company makes a third of its shoes at its factories in the Dominican Republic, Thailand and the U.S. The rest comes from contract manufacturers in India, Vietnam and Cambodia.
Keen can avoid the new tariffs on Chinese-imported goods, but the same could not be said for the nearly 1.2 billion pairs of shoes shipped from China last year. This compares to the approximately 25 million pairs manufactured annually in the U.S., according to the Footwear Distributors and Retailers of America.
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X-TIMESTAMP-MAP=LOCAL:00:00:00.000,MPEGTS:0
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A factory in Shepherdsville, Kentucky reliant
on automation looks to help a shoe manufacturer
00:04.639 --> 00:08.420
navigate tariffs and labor shortages.
The Wall Street Journal reported that Keen
00:08.420 --> 00:12.600
Footwear recently closed its facility in
Portland, Oregon with plans to relocate
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production to a 60,000 square foot site in the
Bluegrass state scheduled to open next month.
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The company expects the new location to nearly
double its domestic output and credits that
00:21.440 --> 00:22.479
growth to increase automation.
00:22.934 --> 00:26.774
Kean noted that the Kentucky plant's automation
would support the 24 workers it plans to
00:26.774 --> 00:29.454
initially hire.
According to the journal, the machinery would
00:29.454 --> 00:33.084
handle mundane tasks, allowing the employees to
focus on more detailed work.
00:33.255 --> 00:36.845
The report mentioned that Keene plans to expand
its payroll as it increases production.
00:37.055 --> 00:41.174
The development arrives at a timely moment amid
US President Donald Trump's multiple tariff
00:41.174 --> 00:43.744
threats.
However, the Journal reported that Keen Chief
00:43.814 --> 00:47.270
Operating Officer.
Paramal said the decision to invest in US
00:47.270 --> 00:49.709
manufacturing predates the latest trade war
drama.
00:49.909 --> 00:54.990
Founded in 2003, Kean began domestically
producing footwear in 2010 in response to
00:54.990 --> 00:58.939
rising Chinese manufacturing costs and a desire
to diversify sourcing.
00:59.229 --> 01:01.259
Keane has since shifted production of its
hiking shoes,
01:01.360 --> 01:03.979
thick-soled sandals, and work boots out of
China.
01:04.309 --> 01:07.589
Now, the company makes a third of its shoes at
its factories in the Dominican.
01:07.735 --> 01:09.394
Republic, Thailand and the US.
01:09.684 --> 01:12.364
The rest comes from contract manufacturers in
India, Vietnam,
01:12.404 --> 01:15.084
and Cambodia.
Kean can avoid the new tariffs on Chinese
01:15.084 --> 01:19.504
imported goods, but the same could not be said
for the nearly 1.2 billion pairs of shoes
01:19.504 --> 01:20.875
shipped from China last year.
01:21.165 --> 01:25.154
This compares to the approximately 25 million
pairs manufactured annually in the US,
01:25.474 --> 01:28.035
according to the footwear distributors and
retailers of America.
01:28.285 --> 01:30.205
I'm Nolan Bilstein.
This is manufacturing now.
