In spite of this year’s political uncertainties and the general doom and gloom surrounding manufacturing, there is still some blue sky lurking amidst the dark clouds. So take these three new developments in U.S. factories as portends of a potentially bright future for American manufacturing.
Adidas Atlanta Shoe Factory
“For years our industry has been playing by the same rules, manufacturing product remotely in Asia,” said Adidas Group executive board member Eric Liedtke. “We’re…reinventing manufacturing with the first Adidas SPEEDFACTORY in Atlanta. This allows us to make product for the consumer, with the consumer, where the consumer lives in real time, unleashing unparalleled creativity and endless opportunities for customization in America.”
The company’s business model is intended to allow Adidas to decentralize production and react faster to consumer needs. The U.S. factory is designed to enable Adidas to create products in increasingly high volumes with advanced complexity in color, materials and sizes. In addition, the facility allows Adidas to source and produce locally.
“Speed is far more than a business strategy for us,” said Adidas Group executive board member Glenn Bennett. “With the first U.S.-based SPEEDFACTORY, we’re combining some of the world’s best technology and manufacturing processes to give our consumers access to constant newness.”
The more than 74,000-square-foot Atlanta factory will be fully functional in the back-half of 2017. With a focus on running footwear, Adidas is targeting production of 50,000 pairs in 2017. In the mid-term, Adidas aims to produce half a million pairs of shoes for running and other categories. The U.S. SPEEDFACTORY will create around 160 jobs.
“Our state is emerging as a sports corridor for Southeastern U.S., and our business-friendly climate will be a match for Adidas’ new operation,” said Georgia Governor Nathan Deal. “We look forward to working with our partners in Cherokee County and at the Metro Atlanta Chamber to support Adidas in future growth.”
For more information, visit the Adidas website.
IMETCO Sacramento Manufacturing Facility
IMETCO is a manufacturer of metal products for the building envelope, offering a range of metal roofing, metal wall and metal edge systems and accessories.
According to the company, the new location will have a significantly broader manufacturing portfolio to better serve IMETCO’s West Coast customers.
“Making the move to Sacramento puts IMETCO closer to its West Coast customers, which helps to reduce product lead time and shipping costs. Overall, the move will allow us to better serve our customers,” said Joe Mellott, VP and general manager at IMETCO.
The McClellan Air Force Base revitalization project is part of a $580 million investment to transform the now closed base into a business park. IMETCO’s manufacturing facility is part of that project, aimed at improving the surrounding infrastructure and creating new jobs.
For more information, visit the IMETCO website.
Sumitomo Doubling Tire Capacity in New York
The plant currently has the capacity to produce approximately 5,000 passenger and light truck tires per day, but a USD $87-million investment will increase that figure to 10,000 per day by the end of 2019.
“With this move, we will enhance our ability to produce tires locally for the North American market, focusing especially on expanding local production of SUV tires, which are in particularly high demand in North America,” stated a press release from the subsidiary's parent company, Sumitomo Rubber Industries Ltd. “By increasing our proportion of locally produced tires and cutting sales lead times, we aim to expand our overall tire sales in North America.”
The company cited the dissolution of its Global Alliance with Goodyear Tire and Rubber Co. in October of last year as enabling significantly more freedom in the North American market. Efforts to transfer a portion of the company’s tire production from Thailand to the U.S. are already underway.
Although the company also recently announced a $ 100-million investment to add truck and bus tire production to its Brazilian tire plant, those products are intended solely for the Brazilian domestic market.
For more information, visit the Sumitomo website.
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