By Alice Seeley
New Balance received close to $1 million in tax credits from the state of Massachusetts to open the factory after it agreed to employ at least 60 people in the new factory. The company will also receive almost $270,000 in tax relief from a 10-year tax financing agreement through the state’s Economic Development Incentive Program with the city of Methuen.
The factory began operating in January 2022 and already employs more than 90 people producing New Balance’s iconic Made 990v5 sneaker. New Balance said it plans to more than double the current workforce and production capabilities by the end of this year. The company hopes the factory will produce an additional 750,000 pairs of sneakers annually.
New Balance is dedicated to domestic manufacturing. New Balance Chief Operating Officer, Dave Wheeler, stated the company’s “commitment to domestic manufacturing drives innovation, capitalizes on consumer trends, and provides new market opportunities.”
Unlikely many companies that financially suffered from the pandemic, New Balance did not, as more consumers than ever turned to exercise during pandemic lockdowns. For many, this meant buying new activewear. In 2021, New Balance’s revenue hit $4.4 billion, a 10% increase from 2019 and a 30% increase from 2020.
New Balance is currently the fifth-largest sneaker brand in America, with 3.4% of the market share.