Charles R. Goulding and Preeti Sulibhavi explain how New Balance’s commitment to domestic manufacturing and 3D printing innovation is reshaping the athletic footwear industry and beyond.
New Balance, a Boston-based sportswear company, has distinguished itself in the athletic footwear industry through its commitment to domestic manufacturing and innovative technologies like 3D printing. The recent enactment of large tariffs adversely impacting the majority of footwear manufacturers with foreign facilities highlights the New Balance advantage.
Commitment to Domestic Manufacturing
As the only major athletic footwear manufacturer with production facilities in the United States, New Balance operates factories in Maine and Massachusetts, with plans to expand into New Hampshire. This dedication to domestic manufacturing reflects the company’s long-term vision and commitment to supporting local communities. CEO Joe Preston emphasized this approach, stating, “Our commitment to domestic manufacturing is really strong… this is a commitment for us to be a great American company and a global brand.”
While domestic production entails higher costs compared to overseas manufacturing, it offers advantages such as reduced time to market and strengthened community ties. Preston highlighted the importance of these factors, noting that producing locally eliminates the month-long shipping period from Asia and reinforces the company’s commitment to the communities in which it operates.
Strategic Turnaround and Market Focus
Facing industry challenges, New Balance implemented a strategic turnaround by retrenching and focusing on niche markets, including baseball. The company made significant marketing investments in key events like the Boston and New York marathons and established its own multi-sport facility to host leading sports events. These efforts have broadened New Balance’s appeal, particularly among Gen Z and Millennials, contributing to record global sales of $6.5 billion in 2023, a 23% increase from the previous year.
Innovation and 3D Printing Integration
Innovation is central to New Balance’s strategy, exemplified by its collaboration with Massachusetts-based 3D printer manufacturer Formlabs. Since 2017, this partnership has focused on developing high-performance materials and manufacturing processes for athletic footwear. A notable outcome is the creation of Rebound Resin, a proprietary photopolymer designed to produce springy, resilient lattice structures with the durability of injection-molded thermoplastics.
Utilizing Rebound Resin, New Balance introduced the TripleCell platform, a 3D printing technology used to revamp classic sneakers like the 990 Sport and FuelCell Echo. The redesigned 990 Sport features a 3D printed heel that maintains the cushioning experience of the classic style while being 10% lighter than its predecessor. Similarly, the FuelCell Echo incorporates 3D printing for optimized cushioning, showcasing the potential of additive manufacturing in enhancing athletic footwear performance.
The integration of 3D printing offers several benefits, including reduced dependence on molds, accelerated development and production cycles, and the ability to create customized, high-performance components. Dávid Lakatos, Chief Product Officer of Formlabs, remarked, “3D printing is changing how companies approach manufacturing… We’re moving towards a world where design cycles are closing in on the whim of the consumer.”
Community Engagement and Collaborative Initiatives
Beyond footwear, New Balance’s expertise in 3D printing has contributed to community projects, such as developing a custom harness for Charlotte, a green sea turtle at Mystic Aquarium suffering from “bubble butt” syndrome. Collaborating with Formlabs and Adia, a Cromwell-based company specializing in 3D printing, the team created a series of prototypes using 3D scanning and carbon fiber nylon. The latest harness, fitted in late 2024, has been successful, allowing Charlotte to swim properly. This initiative highlights the potential of 3D printing in improving the lives of marine animals and reflects New Balance’s commitment to leveraging technology for positive community impact.
In addition, New Balance has been endorsed by many leading athletes, including Shohei Ohtani, who has represented the brand since 2023. According to Ohtani:
“”New Balance is a global brand that is known for having incredible product innovation but also for being an authentic brand who allows their athletes to be themselves. I am excited to join with them to change the game.”
The Research & Development Tax Credit
The now permanent Research and Development (R&D) Tax Credit is available for companies developing new or improved products, processes and/or software.
3D printing can help boost a company’s R&D Tax Credits. Wages for technical employees creating, testing and revising 3D printed prototypes are typically eligible expenses toward the R&D Tax Credit. Similarly, when used as a method of improving a process, time spent integrating 3D printing hardware and software can also be an eligible R&D expense. Lastly, when used for modeling and preproduction, the costs of filaments consumed during the development process may also be recovered.
Whether it is used for creating and testing prototypes or for final production, 3D printing is a great indicator that R&D Credit-eligible activities are taking place. Companies implementing this technology at any point should consider taking advantage of R&D Tax Credits.
Conclusion
New Balance’s dedication to domestic manufacturing and innovative technologies like 3D printing has positioned the company as a leader in the athletic footwear industry. By focusing on local production, strategic market engagement, and cutting-edge manufacturing processes, New Balance continues to deliver high-quality products while supporting local communities and advancing technological innovation.
