How Does The US Exit The TPP Shoe Maker To Produce At Home?

The industry may increase robots and fewer factory jobs in the United States.

According to the world clothing and shoe net, the Trans-Pacific Partnership (TPP) trade agreement, with Nike (Nike) as the head of sports shoes manufacturers, is the most staunch supporter.

They have sufficient reasons: according to the United States

Footwear Distributorsand Retailers of America estimates that if the agreement comes into effect, Nike,

(Adidas) and Andemar (Under Armour) and other companies can save $450 million in tariff cuts in the first year.

At present, with President Donald Trump destroying the agreement, he announced that the United States will withdraw from the TPP in the first week of his presidency and strongly condemn the companies that import large quantities of their products. The sneaker manufacturers may find themselves the targets of Trump's attack on Twitter.

American shoemaking companies will consider production in their own country.

In this case, the shoe companies are beginning to say that more production will be pferred to the United States - almost all the sports shoes of these companies are imported from low-cost regions in Asia.

In recent years, they have been considering how to make production in the United States, but not to avoid political disputes.

Production in the vicinity of such a large market in the United States can shorten the time required for the listing of products.

Now, in the Trump era, the attention sports shoe manufacturers trying to make their own production can also divert Washington's attention. These companies are mainly designed to design shoes and clothing made in Asia and sell them to American consumers.

Nike website shows that its products are made by nearly 1 million 100 thousand workers in 645 factories in 42 countries.

About 400 thousand workers are in Vietnam, and 202 thousand are in China, and only 7000 are in the US.

The tariff reductions stipulated in TPP can release more funds to accelerate the pfer of production to the United States.

For example, Nike has said that if Vietnam does not need to pay tariffs on imports from Vietnam, the largest source of footwear imports, the company will use the money saved to increase investment in advanced manufacturing technology.

Nike said it would also help to return more production to the United States. In 10 years, it and its manufacturing partners could create 50 thousand jobs in the United States.

Now, shoemaking enterprises must expect Trump and Congress to take more incentive measures to encourage enterprises to make production in the US and accelerate their "American made" ambitions.

Matt Powell, a footwear analyst at NPD Group, a consumer product research firm, said that, in any case, this is not a fatal blow, but for the industry, this is indeed a setback. NPD Matt

Investing in advanced technology to assist in production pfer

In studying how to pfer production to the United States, shoemaking companies have embraced a new class of workers: robots.

The manufacture of sports shoes requires many pieces of material to be stitched or glued together, which is a labor-intensive industry.

This is also one of the reasons why many factories are located in low wage countries.

Therefore, automation is the key to the pfer of production sites.

Nike invented a technology to color the bottom of shoes.

In the past, the time-consuming method needed to use adhesive tape to ensure that the color was applied only to the place where it should be painted, which is very similar to the painted living room.

The company also invented a robot that can be coloured without the use of adhesive tape and new designs that cannot be manually colored.

However, it will still be difficult to improve the proportion of the United States in total global production.

Nike employs 1300 people in the factory in Oregon and Missouri to produce inflatable soles, which will be shipped overseas to complete the production of shoes.

But this is negligible compared with the company's cooperative factories in Asia.

Nike said that despite TPP's stranding, the company still plans to invest in advanced manufacturing technology in order to pfer product production to the United States.

A company spokesman said Nike welcomed the opportunity for the Trump administration to "participate" and see how the "new picture" of Taxation and trade will provide support for this process.

In 2016, Andemar opened a new factory in Baltimore, hoping to pfer production to the United States.

Kevin Planck, chief executive of Trump, who met with Mr. Kevin, said that the move would create "thousands of jobs" for Plank.

In the second half of 2016, the company introduced a sports shoe with its sole made in 3D printing technology in New Hampshire.

Adidas said it will open a factory near Atlanta in 2017 to produce running shoes with robots.

The output is expected to be 50 thousand pairs in 2017 and will reach 500 thousand pairs a year.

To add one point, the total annual output of Adidas is 300 million pairs.

"It's not worth mentioning at all," said Powell, an analyst at NPD. "I don't think that one day, the production of shoes in the United States will reach a commercial scale."

Even if the United States will build many shoe factories, it is doubtful, because most of the manufacturers of sports shoes rely on foundries which are not normally operated in the United States. These factories will also achieve highly automation. Most of the work they create will be done by industrial robots or 3D printers, rather than people.

For example, Adidas said its fast plant in Atlanta would initially employ only about 160 people.

Andemar's 3D print sports shoes made in New Hampshire only used more than ten workers.

Moving the production back to the United States "will create other forms of jobs, perhaps not hundreds of thousands of factories, but there will be hundreds of people responsible for plant operations, resource allocation, sales and marketing, retail and pportation," said Michael Raphael, founder of Direct Dimensions, a 3D services company co operating with Andrew. "You also need a complete supply chain to support it," Michael Rafael said.

However, in the current environment, it may not matter how many jobs can be increased compared with the goal of achieving a bigger "made in the United States".

Caitlin Webb Caitlin Webber, Bloomberg Intelligence, said: "these enterprises can emphasize their business in the United States and the United States to some extent, which may be politically cautious."

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