Allen-Edmonds Invests $1M To Continue Manufacturing Shoes in the U.S.A.

Business Editors

PORT WASHINGTON, Wis.--(BUSINESS WIRE)--Jan. 13, 2004

In 2003, Allen-Edmonds Shoe Corporation invested $1M into converting its main shoemaking plant in Port Washington, Wisconsin to a lean manufacturing system. The money was spent on purchasing new equipment, changing the factory layout and rolling out comprehensive training programs and reinforces the company's commitment to manufacturing its premium men's footwear in the United States.

Today, fewer and fewer companies are making products in America because of exorbitant manufacturing costs. A few years ago, Allen-Edmonds began conducting research to learn how to reduce those costs. At one point the company considered outsourcing some production to factories in other countries. But the idea was quickly abandoned because of logistical and quality issues.

Being in such close proximity to the plant floor enables the company to respond very quickly to customers. This level of control removes the burdens of outsourcing such as additional customs protocols and longer transit times. It was also obvious that the company's rigorous quality standards couldn't be met through foreign production. "Outsourcing isn't an option for us right now because manufacturers outside of the U.S. cannot produce shoes of Allen-Edmonds quality," says John Stollenwerk, president and CEO, Allen-Edmonds Shoe Corporation. "Some of the countries experiencing growth in manufacturing are still finding their way. And since quality is the cornerstone of our brand, we knew immediately that going to a foreign factory wasn't going to work."

Instead of outsourcing, Allen-Edmonds integrated lean manufacturing concepts. Lean companies are more efficient, productive and profitable. Less time and materials are wasted. Bottlenecks are eliminated and inventory levels are managed better. Costs are reduced, productivity is increased and quality is enhanced. By taking a lean approach, Allen-Edmonds expects to see dramatic reductions in downtime, wasted materials and damage rates. These reductions add dollars and cents to the bottom line to stave off rising labor, property tax and insurance costs.

Since the late 1990s the company has reaped some of the benefits of lean manufacturing through programs at its Milwaukee, Wisconsin and Lewiston, Maine facilities. Co-workers at the Milwaukee facility, where uppers are assembled, use a lean approach called the Toyota Sewing System. At the Maine facility, where handsewn shoes are produced, a similar cellular method is used. Additional improvements are still underway. By mid-2004 the company's Lake Church facility, where leather is cut and uppers are assembled, will be integrated into the main Port Washington plant.

About Allen-Edmonds Shoe Corporation

Allen-Edmonds is a privately-held manufacturer of premium men's footwear, accessories and cedar products. Using the philosophy of quality, service and integrity Allen-Edmonds takes shoemaking to the level of an art form. Each pair of Allen-Edmonds shoes is proudly handcrafted in the U.S.A. during a process that includes over 200 separate production steps. Allen-Edmonds products are available all over the world and on the Internet. For more information, please visit Allen-Edmonds online at http://www.allenedmonds.com.