The Footwear Distributors and Retailers of America (FDRA), partnered with the firm ELEVATE, has produced its 5th　Annaul Factory Survey Analysis. The recently completed report provides data and analysis on social compliance issues impacting the footwear industry.
The report surveys factories in China, where over 80% of footwear is produced for the U.S. market to get a clearer view of what is happening on the ground. It contains data from 110 factories across China.
FDRA has released the report to members and is providing the info graphic covering the data to the public:
http://fdra.org/wp-content/uploads/2014/06/Factory-Survey-Analysis-2014-SUMMARY.pdf
“If we can better help our members understand what issues factories face and what challenges they prioritize, we can enhance industry communication and more effectively work with factories in a collaborative way,” said FDRA President Matt Priest. “As recent events at footwear factories have shown, understanding the complex challenges both workers and factory owners face is vitally important to the overall success of our industry.”
FDRA’s survey reveals a strong sense of optimism amongst factories about their business prospects, but it also indicates that they are facing　challenges related to seasonal production fluctuations, raw material costs and shrinking labor pools. An increasing number of factories cope with　some of these challenges by providing longer working hours to workers as well as hiring juvenile workers and workers of retirement age – coping strategies that increase the risk of non-compliance with the social performance requirements of buyers. Wages also continue to be one of the top challenges for Chinese footwear manufacturers. Of the surveyed factories, 11% do not pay legal minimum wage.
The report shows that pure compliance audits are not enough to tackle these compliance risks, and it reveals how functioning communication and integration mechanisms have a positive impact on worker retention.
FDRA’s Factory Survey has shown for several years now that failing to meet wage and benefit requirements on a consistent basis is a rather common challenge amongst footwear factories. On the other hand, the survey provides data that shows that investing in strong internal communication systems and worker integration are more effective ways of overcoming industry challenges. Well-functioning communication and　integration systems have positive impacts on worker retention and can therefore help factories deal with the worker shortages, seasonality and compliance requirements.
“Like in years past, the survey provided a much-needed insight into the hindrances and progress made by the Chinese footwear manufacturing industry,” said the association. “Appropriate action and efforts from FDRA, buyers and manufacturers will be required to ensure that factories understand the importance of continuous improvement and strive to drive positive change throughout the supply chain.”
