8 min readChapter 1

Origins

The early 20th century in the United States represented a period of unprecedented industrial expansion and dramatic urban growth. Cities burgeoned as rural populations migrated for work, leading to a burgeoning workforce often engaged in physically demanding occupations within factories, construction sites, and municipal services. This era saw the rise of heavy industries such as manufacturing, steel production, and railroad expansion, alongside a significant increase in urban infrastructure development. Many laborers spent grueling shifts on their feet, often in ill-fitting or poorly designed footwear, leading to widespread foot pain, fatigue, and various chronic ailments like fallen arches, bunions, and corns. Within this environment, a nascent, albeit rudimentary, understanding of biomechanics and foot health began to emerge, driven by the practical needs of these workers. Medical professionals and early ergonomists started to recognize the direct correlation between proper foot support and overall physical well-being, endurance, and productivity. It was against this backdrop of widespread discomfort and a growing awareness of its causes that William J. Riley, an Irish immigrant living in Belmont, Massachusetts, identified a critical and underserved niche market for specialized footwear components designed to alleviate discomfort and improve fundamental balance. His insight pointed towards a functional necessity, not merely a luxury.

Riley's initial venture, established in 1906, was notably not focused on producing complete shoes, a common activity for cobblers of the era, but rather on the precise engineering and crafting of arch supports. This specialization was key. His profound observations of chickens moving in his backyard, specifically noting the inherent stability provided by the three-pronged support structure of their feet – the three claws grounding the bird – reportedly served as a foundational inspiration for his design philosophy regarding footwear inserts. This seemingly simple yet profound insight into natural balance and anatomical support became the cornerstone of his nascent business. The company, initially named the New Balance Arch Support Company, aimed to provide bespoke orthopedic devices to a specific clientele: primarily police officers, firefighters, and factory employees. For these professionals, standing or walking for extended periods was not merely a discomfort but an occupational necessity, impacting their effectiveness and long-term health. The targeted approach reflected a clear understanding of market need among those for whom foot health was directly tied to their livelihood. The materials used for these early supports would likely have included durable leathers, cork, and rudimentary composite materials, shaped to provide firm, yet flexible, support.

Riley’s expertise was primarily rooted in the practical application of orthopedic principles, rather than formal medical training. He operated with a direct-to-consumer model, working intimately with his clients. This involved meticulous measurements of their feet, often utilizing plaster casts or detailed sizing mechanisms, followed by the handcrafted production of custom arch supports and corrective shoes. Each product was tailor-made, a stark contrast to the emerging mass production trends in other industries. This individualized solutions approach, centered on high-quality craftsmanship and personal service, quickly established an early reputation for unparalleled quality and efficacy. The broader footwear market at the time largely lacked widespread access to such specialized orthopedic products; general shoemakers focused on basic construction, not biomechanical correction. This absence positioned New Balance as a pioneering firm, uniquely addressing an underserved health and comfort requirement for a significant segment of the working population. The company's operations were inherently small-scale, characterized by a hands-on, artisanal approach and direct client engagement, reflecting the bespoke nature of many successful early 20th-century businesses before the advent of widespread industrial standardization. This model, though limited in volume, fostered deep customer loyalty.

Over the subsequent decades, from its founding into the 1930s, the New Balance Arch Support Company steadfastly maintained its specialization in arch supports and orthopedic shoes. Its clientele gradually expanded, primarily through the powerful mechanism of word-of-mouth referrals. Satisfied customers, experiencing significant relief from chronic foot pain and improved comfort, became advocates, recommending Riley’s products to colleagues, friends, and family. The demand for such specialized products remained remarkably consistent, driven by the ongoing physical demands of industrial labor and a slowly but steadily increasing general population awareness of the importance of foot health. This period saw the broader footwear industry begin its shift towards mass production, with companies like Keds introducing canvas sneakers and a focus on more generalized, less individualized fit. However, New Balance remained committed to its specialized niche, emphasizing superior quality, custom fit, and the ergonomic benefits of its products over the pursuit of high-volume sales. This deliberate strategy allowed the company to cultivate a loyal and stable customer base. Critically, this focus on essential, health-driven products, rather than discretionary fashion items, also contributed significantly to its financial stability during severe economic fluctuations, most notably the Great Depression. While many businesses faltered or collapsed between 1929 and the mid-1930s due to plummeting consumer demand and limited credit, New Balance's provision of a necessary, comfort-enhancing product for an economically active workforce provided a crucial buffer, ensuring its survival.

By the late 1920s and early 1930s, as the company matured and Riley himself approached an age where succession planning became prudent, he began to consider the long-term future of his enterprise. Recognizing the limitations inherent in a sole proprietorship for sustained growth and broader market penetration, he sought individuals who not only shared his meticulous dedication to anatomical precision and exemplary customer service but also possessed the acumen to manage and potentially expand the business beyond his direct, day-to-day involvement. This period, characterized by internal reflection and strategic foresight, marked a nascent transition for the company. While its founder, William Riley, remained actively involved, he consciously started to lay the groundwork for a more formalized business structure. This evolution moved beyond the purely artisanal, one-man-show model to one that could accommodate modest growth, increase production capacity, and ensure business continuity. The strong reputation forged on individual craftsmanship, a deep scientific understanding of foot mechanics, and a proven track record of customer satisfaction served as an exceptionally solid foundation for any future expansion efforts. This period was not about rapid scaling, but about thoughtful planning for generational transfer and methodical, sustainable growth.

A pivotal moment in this transitional phase occurred in 1934 when William Riley hired Arthur Hall. Hall was a seasoned salesman with a keen understanding of market dynamics and customer engagement, making him a critical new figure in the company's development. His arrival brought a significant shift towards broadening the reach of New Balance's specialized products. While Riley focused on the technical perfection of the arch supports, Hall recognized the potential for expanding sales channels beyond direct, individual appointments. He was instrumental in evolving the company from a highly localized, craft-centric operation, almost entirely dependent on Riley's direct efforts, to one with a slightly wider, though still specialized, distribution network. Hall began exploring partnerships with sporting goods stores that catered to athletes (even in this early stage, some recognition of athletic support was nascent), as well as health professionals such as podiatrists and chiropractors, who could refer clients requiring specialized foot support. He also targeted occupational health programs within larger corporations, understanding the benefit to employers of reducing worker fatigue and increasing productivity. His contributions significantly bolstered the company's market presence and enhanced customer acquisition, effectively complementing Riley's deep technical acumen and orthopedic expertise.

As the 1930s drew to a close, the synergistic partnership between Riley and Hall provided compelling evidence of the viability of the New Balance concept beyond its initial, humble beginnings. The company had successfully navigated its foundational years, overcoming the challenges of establishing a unique market position and enduring a severe economic downturn. It had firmly established a clear identity centered on superior orthopedic support and unparalleled comfort, distinguishing itself from general footwear manufacturers. Its products, while remaining niche in comparison to mass-market shoes, were widely recognized for their consistent effectiveness in improving foot health and overall well-being. This critical period concluded with the New Balance Arch Support Company firmly established as a respected specialty firm, prepared to embark on its next phase of development. With a more structured operational model, transitioning from its founder’s direct, daily oversight to a collaborative leadership, the company was poised to address the future complexities of the market, including evolving consumer demands and potential material innovations, while steadfastly retaining its core philosophy of enhancing balance and comfort through precision manufacturing and individualized solutions. The legacy of Riley's original vision, now bolstered by Hall's business development prowess, set a strong trajectory for the decades to come.