America's first factory for mechanized shoe production was established in Lynn, Massachusetts at the end of the colonial era. The first shoe-factory operator was John Adam Dagyr, a Welshman who came to Lynn, Massachusetts, in 1750. Under his system each worker specialized in only a single operation. Dagyr is called the "father of American shoe making".

The mid 1800's saw the perfection of machines that imitated specific hand processes. The advantages of machines, especially those that were power driven, encouraged the further subdivision of processes, eventually totaling more than 170 steps. This Mechanization reduced the time required to make a shoe by more than 80%.

New England and the Atlantic seaboard dominated shoe making before World War I. The industry employed more than 211,000 workers and an output of 331 million pairs of shoes. Americans exported almost $75 million worth of leather footwear per year.

After World War I the shoe-making industry experienced difficulties. While Americans had refined techniques, foreign manufacturers competed successfully. Imported shoes and a trend toward canvas and rubber shoes eroded the domestic market. Synthetic leather materials forced firms to adopt costly new technology. A more affluent society encouraged companies to design new styles.

Many of the most successful American firms in subsequent decades produced sneakers and athletic shoes. The athletic shoes market started expending during the 50's, and by the 70's sneaker production had become a huge market. By the mid-80's, Manufacturers introduced sophisticated advertising campaigns funded extensively for researching high-tech shoe soles, and paid famous athletes to wear and promote their shoes.

In the 90's, domestically manufactured sneakers accounted for only 10% of the total sold in 1995. Athletic shoes became extremely popular, exceeding more than twice the share of dress or casual shoes by 1997. Since opening its doors in New Hampshire in 2008, New England Footwear is leading the next American footwear trend and reviving New England shoe manufacturing.