the new classic
NEW BALANCE CAPABILITIES BROCHURE 2016
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the new classic
NEW BALANCE CAPABILITIES BROCHURE 2016
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OUR HISTORY
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LETTER FROM THE CEO
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CORPORATE HISTORY
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FUTURE & PAST OF FAST
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MADE IN USA
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SUSTAINABILITY
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ENVIRONMENT
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TOGETHER
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GIVING BACK
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OUR CRAFT
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OUR COMMUNITY
TABLE OF CONTENTS
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“The innovation of our teams, combined with our values, is the reason we have grown. We know associates are our greatest asset and they are driven to achieve. We are fully committed to development and growth in our offices, factories and retail locations.�
FROM THE CEO With this, our first effort to publicly showcase our Responsible Leadership efforts, we share with you our 106year journey that has brought us to where we are today. At New Balance, we are proud of our unique history. We use our past to guide our future, while always striving to retain our family values and cherished culture. Like most brands, New Balance has experienced many highs and lows, but it has always been our personal mission to steward the company with the values that have inspired our culture. You’ll see that, throughout our long journey, we chose to adhere to our roots by doing things differently. We maintained “the New Balance way.” When others said it couldn’t be done, we prevailed with width sizing for better running performance and domestic manufacturing for
quick response to customers and commitment to American workers through sustainable employment. The evolution of New Balance and its family of brands has run a course of steady, sustained growth in a low key, quiet manner. We are proud of the less-traveled road we have taken, finding inspiration in our teammates and being humbled by our accomplishments. Today our associates want to tell the New Balance story. We understand how important this is to our vitality, for team building and for consumer knowledge and decision making. Our story, the New Balance story, encompasses our prevailing values and doing well while moving forward. To both our new and longtime associates, enjoy this exploration of our history and blueprint for the future. First and foremost, this report
was developed for you. To our partners who help make and sell our products, the communities who host our associates, and all who touch and enjoy our products, we offer you a deeper look at New Balance values in action. To all, we invite you to join us in moving the world.
Rob DeMartini, President & CEO
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a signed photo of tom fleming, two-time winner of the new york city marathon (‘73 & ‘75). to quote tom, “new balance all the way.”
history of corporate new balance
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For more than 100 years, New Balance has been a brand dedicated to understanding the movement of people and designing products to match. From the early days of selling arch supports to police officers and waiters, to our current research with world-class athletes in our Sports Research Lab, we have been consumed by the body in motion. Jim Davis and his team immersed themselves into the heart of the running community, experiencing the passion runners had for their sport and witnessing the demands that they had for their footwear. Jim and his wife, Anne, also focused on developing an organization with a distinctive culture where associates were proud to work. They preferred their success to be based on a set of core values: teamwork, integrity and total customer satisfaction. Thanks to her, there is a strong belief at every level of the organization that we at New Balance can individually and collectively make a difference in our business as well as in our local and global communities.
1906
William Riley was inspired by a chicken foot to create a new way to meet the comfort and balance needs of consumers in motion.
1961
Considered to be the first modern running shoe, the Trackster’s ripple-soled shoe: it was available in different widths.
"Show me a runner whose shoes don’t fit, and i'll show you a loser.” - JIM DAVIS, CHAIRMAN
The "N" logo wasn't featured until the '70s when New Balance released the 320.
Arthur Hall, traveling salesman, made his name—and New Balance’s—visiting customers and selling the product first-hand.
On the day of the 1972 Boston Marathon, current Chairman Jim Davis bought the company.
1972
1994
New Balance manufactured 70 percent of its shoes in the United States.
New Balance outsources some of its work to overseas factories in China, Korea, and Vietnam.
1988
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new balance's
FUTURE of fast PAST &
FOR MORE THAN 100 YEARS, NEW BALANCE HAS WORKED TO MOVE THE WORLD AROUND US. BECAUSE WE BELIEVE IN ONE SIMPLE TRUTH: WE WERE BORN TO MOVE. We made our first pair of running shoes in 1938, and have been innovating ever since. Our technology, processes and materials have advanced by quantum leaps since then. Our goal is to help you achieve yours. At New Balance, our job is to aid athletes in their pursuit of excellence, whether that means helping professional athletes set records and win medals, or propelling everyday athletes to achieve a new PR, run their first 5K or just to live a more healthy and active lifestyle. Our products are the perfect blend of function and fashion, giving you the performance technology you need and the style you want. Our associates around the world bring these goals to life with their high-level skills and creativity. While we offer the best product on the market, we’re also equally committed to giving back. So while we look to succeed, we believe in ensuring others have the same opportunity. But we’re always on the lookout for more. For better. For what’s next. The innovations of our past continue to inspire us today.
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THE ARCHETYPE our first running shoe
1938
“It was totally all about function-pattern engineering back then. You can see that here in this kind of saddle, which is something New Balance is well known for now. That’s pretty much every new balance running shoe you see today.”
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JP Fullum Director of Design Innovation “Kangaroo leather is a natural lightweight material. So, already there was some thinking about innovation and lightweight.” JP Fullum Director of Design Innovation
A lightweight kangaroo leather, crepe-soled shoe custom-designed for the local Brown Bag Harriers running club in Belmont, MA.
THE WORLD’S FIRST PERFORMANCE RUNNING SHOE MADE IN MULTIPLE WIDTHS FINALLY GAVE RUNNERS THE OPTION OF
finding a better fitting shoe. “It was a quest for a better fitting shoe and nobody was offering multiple widths at that time. Pretty innovative for 1960.” NB
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JP Fullum Director of Design Innovation
All leather, no spikes.
THE BREAKTHROUGH Trackster
1960
THE TRENDSETTER 320
1970
“All our shoes from the ‘70s and ‘80s had the same layout: mid-foot saddle, forefoot tip, and foxing in the heel. That’s been the recipe for many of our successful shoes.” JP Fullum Director of Design Innovation
BREAKTHROUGHS IN CUSHIONING CATAPULTED THE 320 TO THE TOP OF THE RUNNER’S WORLD LISTS - AND NEW BALANCE TO THE forefront of modern shoe design.
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the streamlined 620
WAS PURPOSEFULLY DESIGNED TO BE THE LIGHTEST RUNNING SHOE ON THE MARKET AT THE TIME.
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“When our team was trying to design the lightest shoe in the world in the RC5000, we looked a lot to the original 620. At the time, 7.9 oz. was a big deal. Even just the style of the shoe the visual sleekness - is inspiring in itself.” JP Fullum Director of Design Innovation
LIGHTER THAN AIR 620
1980
AN INSTANT CLASSIC 990
1982
The shoe is just iconic. From a technical standpoint, the tossed everything in: motion control stability, flexible fit and a triple density foam for added support, which was very unusual back then. It was super innovative all around, which was why people loved it."
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JP Fullum Director of Design Innovation
The iconic 990 became as famous for its features as its price tag - the first ever to break the triple digit price barrier.
THIS RUGGED ALL-TERRAIN SHOE CAPTURED THE IMAGINATIONS OF YOUNGER ATHLETES ACROSS THE COUNTRY, PROPELLING NEW BALANCE TO #1 in trail running.
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"Trail shoes today have a lot of the same elements. The advanced materials we work with now let us keep the same type of ride, support and durability, but at a much lighter weight. But overall, the philosophy behind our trail shoes now is actually not that different than it was then." JP Fullum Director of Design Innovation
The 2015 TrailBuster is a nod to the success of the original Trailblazer.
THE TRAILBLAZER 801
1998
"Minimus was innovative because it came from insights we arrived at by working with our athletes. We noticed (ultra-runner) Tony Krupicka was modifying his shoes by slicing off the heel, just to get lower to the ground. And that was a first. We jumped on Tony's modification and made a shoe that was simpler, streamlined, and lighter weight. Together we were able to push a minimal trail shoe that worked more with the foot instead of trying to control it. We rely on our athletes for insights and inspiration. This was a perfect example."
At the forefront of the minimalist movement, Minimus was designed to deliver the benefits of barefoot running with more protection.
JP Fullum Director of Design Innovation
RADICALLY DIFFERENT Minimus
2011
LIGHTER. FASTER. BETTER. RC5000
2012
With a weight just over 3 ounces, this ultralight racing flat broke barriers in the track world and remains a favorite of elite runners today.
"It was the first time we had data and algorithmbased software help us design shoes. We had all this data from athletes: mostly impact, force and pressure testing. And we wanted to see how we could design midsoles with little to no input from designers. Straight data design." JP Fullum Director of Design Innovation
THE SCIENCE OF SOFT Fresh Foam
2014
WHERE WE ARE NOW
2016 "The reality is, we use data pretty much everywhere now. It's just a really good design tool. It grounds the design in something and gives us reasons for placing things where they are." JP Fullum Director of Design Innovation
We've already begun 3D printing individual customizations for our elite athletes. The quest has always been to try to bring that to a lot more people."
MADE IN THE USA. WORN AROUND THE WORLD. We’re proud of the quality of the shoes we make here in the United States, which is why this year we expect to export over 1 million pairs of Made in the USA Shoes.
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WE’RE PROUD TO BE THE only major company to make or assemble more than 4 million pairs of athletic footwear per year in the USA, which represents a limited portion of our US sales. Where the domestic value is at least 70%, we label our shoes Made in the USA.
American Quality
WE’RE PROUD OF THE QUALITY OF THE SHOES WE MAKE HERE IN THE UNITED STATES, WHICH IS WHY THIS YEAR WE EXPECT TO EXPORT OVER 1 MILLION PAIRS OF SHOES MADE IN THE USA ACROSS THE GLOBE. New Balance is the only major company to make or assemble more than 4 million pairs of athletic footwear per year in the USA, which represents a limited portion of our US sales. Where the domestic value is at least 70 percent, we label our shoes, “Made in the USA.” One quarter of our shoes are made in the United States. New Balance owns five factories in the United States: two in Massachusetts (Boston and Lawrence), and three in Maine (Norridgewock, Skowhegan and Norway). In 1994, we manufactured 70 percent of its shoes in the United States. In 2006, "approximately 25% of the New Balance shoes sold in North America are Made in the USA and we will continue domestic manufacturing." According to Fortune in 2006, "About 70 percent of its shoes are now made in China and the other 5 percent in Vietnam. The New Balance production facility in the United Kingdom has been, since 1982, at Flimby, Cumbria, in North West England, where 28,000 pairs of shoes are produced each week.
WOMEN’S AMERICAN-MADE SHOES Our featured collection of running shoes and sneakers made in the USA represent the patriotic, independent American spirit at its finest. Whether you’re looking for running shoes or classic lifestyle kicks, our “Made in the USA” tag indicates the ultimate in attention to detail and craftsmanship.
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New Balance 990v3
MEN’S AMERICAN-MADE SHOES Wear your pride. At New Balance, we craft our U.S.-made shoes with the highest care and quality so that these timeless kicks will last for years to come. Order custom sneakers made in the USA for a look that stands out from the crowd.
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New Balance 990v3
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PEOPLE WANT THAT USA LABEL. THE USA HAS ESTABLISH ITSELF AS A COUNTRY OF QUALITY. YOU DON’T SEE MADE IN USA ANYMORE. AND I’M PROUD TO BE A PART OF IT. Rhonda Hoyt
WITH NEW BALANCE SINCE 1998
MOVING FORWARD: OUR PRODUCTS
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NEW BALANCE IS MOVING THE ENVIRONMENT FORWARD WITH ENVIRONMENTALLY SUSTAINING PRODUCTS. - Treading lightly on limited resources - Striving for zero waste in what we do and what we make - Reducing negative impact on the environment by designing and building products withend-of-life in mind
- Creating products that use sustainable materials and are produced efficiently - Assessing the life cycle impacts of our products, so each day we move forward with lighter footprints
A LEGACY OF LEAN IN NEW BALANCE U.S. MANUFACTURING As 40-year New Balance associate JOHN WILSON explains, New Balance has a long history of driving continuous improvement by utilizing quality circles, work teams, total quality management, and associate involvement programs over the years. We furthered this cause in 2003 by officially adopting lean practices in our domestic factories. Immediately we began reducing throughput process time standardized work and associate problem solving.
New Balance is a founding member of the Sustainable Apparel Coalition (SAC). The SAC is working to combine the OIA Eco Index framework and other eco-indexing tools, methodologies and frameworks into a single method for rating the responsible compliance and sustainability efforts behind a footwear or apparel product.
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MOVING FORWARD: OUR ENVIRONMENT At New Balance, we take "less is more" to heart. By working towards less — less energy, less waster, less harm — the reward is most certainly more: more healthful, more productive, more successful.
LESS HARM
LESS WASTE
LESS ENERGY
New Balance has piloted the use of an air-cooled chiller in factories where process heat requires air conditioning even in winter. This technology uses heat generated in the manufacturing process to chill air or water through absorption, then uses it for air conditioning. This pilot program resulted in a 4.3-year simple payback, and we plan to expand the use of this technology to our other facilities. Adhesives have replaced most means of mechanical fastening in athletic shoes because they provide great latitude in design, are durable under a variety of environmental conditions, and maintain integrity throughout numerous repetitions of multiple stresses (bending, flexing, compressing, etc.). They are also useful for a wide variety of shoe materials, including leather and rubbers.
Nearly all the waste that is generated at these New Balance facilities can be recycled as a useful material. A small percentage is sent to wasteto-energy facilities to capture the embodied energy value. Leather waste generated in our Maine facilities is sent to a landfill as we have not yet identified a recycler and cannot send it to an energy recovery plant. Prototypes for new products and style changes, while wearable, cannot be donated as a portion are single shoes and the others are proprietary designs we do not wish to disclose. Adhesives have replaced most means of mechanical fastening in athletic shoes because they provide great latitude in design, are durable under a variety of environmental conditions, and maintain integritythroughout numerous repetitions of multiple stresses (bending, flexing, compressing, etc.). They are also useful for a wide variety of shoe materials, including leather and rubbers. synthetic leather (polyester with a polyurethanecoating), and polyurethane and EVA foams.A polymer (usually either polyurethane or polychloroprene,also known as neoprene) is dissolved in a solvent (e.g., methyl ethyl ketone).
Like the rest of the footwear industry, our use of solvent-based adhesives and primers in our factories results in the emission of VOCs that contribute to the formation of smog and other forms of air pollution. Our VOC emissions at New Balance owned and operated factories dropped 3 percent. Where solvent use is necessary, we use acetone (a solvent that is exempt from VOC regulatory controls as it is unlikely to contribute to ground-level ozone formation) as much as possible in our domestic operations for priming, cleaning and adhesives. New Balance-owned factories reduced acetone use by eight percent, from a 2009 total of 23.52 metric tons to 21.57 metric tons in 2010. In 1995, New Balance began moving away from using solvent-based adhesives to attach uppers, soles, linings and other components during production with the introduction of reactive hot-melt systems. Use of alternatives required extensive testing and, in some cases, redesigns to improve manufacturing efficiencies and meet product performance objectives. In our U.S. factories, we have virtually eliminated conventional solvent use in compliance with air quality regulations limiting VOCs and with OSHA exposure standards. Outside the U.S., we are transitioning away from solvent-based adhesives, transferring our experience with hotmelt systems in our domestic factories to our contract manufacturers, and encouraging the use of water-based adhesives.
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MOVING FORWARD: TOGETHER FULFILLING CAREER POTENTIAL Our associates are the backbone of our success. As we work to move people physically, emotionally and intellectually, we know that providing each associate with the right training and development is key so they can move forward, as New Balance moves forward. ENSURING A SAFE AND HEALTHFUL WORKPLACE We have always believed it’s our responsibility—to our associates and to the employees of our contract manufacturing partners—that we uphold applicable labor and environmental standards. That’s why, relatively early in our industry, New Balance
moved to make corporate social responsibility a management priority for our own operations as well as for our supply chain partners. CREATING A SAFE, HEALTHFUL, AND RESPONSIBLE WORKPLACE AT CONTRACT FACTORIES New Balance cares about the working conditions of the people who make our products, regardless of the country in which they work. We began addressing social compliance with our contract footwear suppliers in the late 1990s. In 2004, New Balance hired full-time staff to develop and implement a program that, in
2006, expanded to include apparel, accessories and licensee products. Currently 10 full-time members comprise the Social Compliance Team: two in the U.S.,one in Hong Kong, one in Vietnam and six in China. DOMESTIC FACTORIES In our own factories, we place a strong emphasis on training, internal compliance assessment and continuous improvement as the primary means of providing excellent working conditions. New Balance leadership is responsible for establishing a culture that encourages associates to work safely and report any unsafe condition or behavior.
"THERE WILL BE NO FUTURE FOR NEW BALANCE IF WE DO NOT REALIZE HOW MUCH WE
need one another to achieve our goals:
THE GOALS WE SET FOR NEW BALANCE, THE GOALS WE SET FOR OURSELVES, THE GOALS WE SET FOR OUR FACTORY PARTNERS"
—Anne Davis
MOVING FORWARD: GIVING BACK For over half a century, we — our associates, the company, our foundation — have been promoting sustainable change by sharing what we know, volunteering our time, and giving generously to the global we serve. NB
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PAN MASS CHALLENGE This bike-a-thon raises millions of dollars for cancer treatment and research at the Dana-Farber Cancer Institute through its Jimmy Fund. In 2010, New Balance became the co-presenting sponsor of the Pan Mass Challenge alongside the Red Sox Foundation.
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SUSAN G. KOMEN FOR THE CURE® Since 1989, New Balance has partnered with Susan G. Komen for the Cure® at the corporate level and has been a National Series Sponsor of the Race for the Cure since 1991— making New Balance the longest-running sponsor of the Race series.
NEW BALANCE has long been committed to furthering the movement for movement, and inspiring movement around the globe. New Balance Responsible Leadership has taken several steps further, setting in motion a mission to transform our collective energy and move the world. Today, New Balance has implemented the necessary strategies and systems to accurately measure out successes in these areas and report that data back to you. This transparent approach to our findings, and a sincere call for feedback to drive change for the better, underscore our pledge for continuous improvement in all of our endeavors.
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