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Adidas Leads in Shift to More Localized Production as Need for Speed Grows

Sales & Trends

ATLANTA, USA – Last month Adidas opened its 2nd Speedfactory. After starting the first one in Germany last year this second one is located near Atlanta, USA. And more are to follow as Adidas’ need for speed grows. With it the sporting goods maker aims at producing 50% of its sales at such speed facilities. Is this triggering a huge reshoring process from Asia to Europe and the US?

Adidas Leads in Shift to More Localized Production as Need for Speed Grows
Adidas claims to be changing future of manufacturing with more localized production enabling speed, precision and responsiveness. – Photo Adidas

The first Adidas shoes produced and sold from the new USA factory are named AM4NYC (Adidas made for New York City), created specifically for New York’s urban streets. With the launch of the AM4 series Adidas claims to be changing the future of manufacturing with more localized production enabling speed, precision and responsiveness. AM4NYC follows Adidas Made For London (AM4LDN) with in the coming months the ones for Paris, Los Angeles, Tokyo and Shanghai to come.

Ambitions on speed programs

“We have ambition to have 50% of our sales from under what we call speed programs,” said Gil Steyaert, an Adidas executive board member responsible for global operations in a recent ‘Business Insider’ report on the opening of the Atlanta speed facility. “That means that product, which would be reproduced or created in the season is for the same season. The speed initiative is very much aiming at the fast fashion model where we can bring product closer to the consumer,” Steyaert said.

According to the Adidas executive board member the company’s goal with the fully automated Speedfactories is “full customization, but without compromise on speed.”

Huge turnaround to come?

Adidas’ two Speedfactories are to produce one million pair of shoes a year by 2020. The company says that it will continue to experiment with its Speedfactories by adding new technology and more automated processes to get to the goal of 50% of its shoes made by with speedier methods. This would mean a huge turnaround as Adidas made 403 million pairs of shoes in 2017, or more than a million a day on average. On this Gil Steyaert said “The Speedfactories are meant to be complementary to our main source of supply. They will never substitute our main source of supply.”

Related reports on Adidas’ Speedfactories:

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