In this era of automation and digitalization, keeping pace with the humongous deals and requirements has been stated to give the manufacturing companies a tough time. This leads to either the dissolution of the company or the factory unit. In a recent instance, Adidas has been a witness to the same issue.

It has been reported that Adidas would potentially cease the production of goods at two of its speedfactories in Germany and United States by April 2020. This intends to a major reversal for the company which launched its first ever speedfactory in Ansbach, Germany nearly four years back.

The reason for the major shut down is the Speedfactories’ inability to produce a large number of models. In addition to this, the company’s concrete focus on Asia manufacturing has also withered the production in Speedfactories in Europe and US leading to its shut down.

Trusted sources claim that a company dealt with a huge project seeking departure from standard method of sneaker manufacturing to highly automatic manufacturing. Continuing on this, the company worked closely with a partner to build the factories and publicize their automation. This intended on fastening the footwear production enabling the factory to create small batches of customized shoes. Apparently, this process would reduce the time of shelfing the sneakers across the Europe and US.

Speaking on the matter to a reliable source, Rich Efrus, the spokesperson for Adidas, quoted that the company is currently focused upon its Speedfactory production in Asia where it already produces over 90 per cent of the products. It would allow the company to strengthen its hold in the Asian market.

Further, the company cited that it would make use of its Speedfactory technology at two Asian supplier factories to focus on modernizing other suppliers.

Although the cost for shut down of the factories have not yet been disclosed, but it is apprehended that it would not at any cost impact the company’s financial earnings in 2020s. Also, the investment details of the factory installment have not yet been made.
 

Source credit: https://qz.com/1746152/adidas-is-shutting-down-its-speedfactories-in-germany-and-the-us/