The article "Connected" magazine this week reveals Adidas' German headquarters campus and the latest "speed factory" full of technological elements. Including speed factories, Adidas is trying to change manufacturing with a variety of technologies. This will have a profound impact on the global manufacturing landscape. The following is the full text of the article: Last fall, sports equipment giant Adidas opened a new boutique in a shopping mall in Berlin, part of the Adidas “storefront factory†pilot project. The name of "store factory" is simple and clear. Only one product is available here: a machine-woven merino wool coat, which can be ordered on site. The customer is in the showroom and then designs the custom coat with the store staff. These wool jackets cost about $250 and can be delivered in a matter of hours. The small chemical plant behind the glass window contains three industrial knitting machines that produce wool jackets in a matrix-like manner. It has been reported that only 10 coats can be produced per day. However, the purpose of the Adidas trial is not to increase sales, but to test customer acceptance of new concepts. Adidas is investing in these new concepts: design digitization, localization, production automation, and product personalization. Storefront factories are just a small trial of these concepts, and larger trials are already underway. At the end of 2015, Adidas opened a new, highly automated manufacturing facility in Ansbach, Germany. About 35 miles from the Adidas headquarters, called the “Speed ​​Factory,†a series of new technologies, such as 3D printing, robotic arms and computer weaving, to arm small teams of workers to produce shoes. In the past, these products were usually produced by hand in large quantities in China, Indonesia and Vietnam. Adidas' new plant directly caters to the European market. The digital design approach facilitates a variety of detail adjustments, and the robot can seamlessly turn the design into a custom-made sneaker that meets the preferences of consumers in the European market. By bringing the factory closer to consumers, Adidas can cut shipping time and costs. Gerd Manz, vice president of Adidas Innovation Group, said: "We are bringing speed. We can respond to consumer demand in a few days." Adidas said that the speed factory is "re-invention of manufacturing." The media also gave a lot of praise. The Economist reported: "This factory is reinventing the industry by bringing production work home." In September 2016, the Speed ​​Factory rolled out the first pair of sneakers: a super limited edition running shoe called Futurecraft MFG (made in Germany). In the public relations campaign, Adidas released a 3-minute warm-up video that not only introduced the shoes, but also focused on the entire production process. Suspenseful electronic music with a series of futuristic close-ups: the computer keyboard is covered with gray-white residue, various digital control panels, and an orange robotic arm. Adidas then launched 500 pairs of Futurecraft MFG in Berlin, and people lined up on the streets, and these shoes were sold almost instantly. At the same time as this shoe was released, Adidas also announced another major news: the construction of a second speed plant in Atlanta. The future of manufacturing is also coming to the United States. In October of this year, Adidas announced a new project called AM4 ("Adidas Made For"). Adidas will work with KOL in the running circle to design a range of running shoes for the needs of different cities. These shoes are said to solve the different challenges faced by runners in all regions: in London, many runners walk to work, their running shoes need to be suitable for night and rainy days; in New York, urban construction is ongoing, and grid management Therefore, the shoes that runners need should be able to make a flexible 90-degree turn; the weather in Los Angeles is very hot and at the seaside; preliminary research in Shanghai shows that people mainly exercise indoors. All AM4 running shoes will be produced in two speed factories and sold in limited quantities. The practice of Adidas is somewhat confusing. On the one hand, the best running shoes on the market are likely to be suitable for Manhattan roads. And if the advantage of the speed factory is to bring the product to market quickly, why should we produce running shoes in Germany and sell it in China? (Adidas' ultimate goal is to build a speed factory in more areas, but not now.) It seems obvious that the speed factory is suitable for more ambitious economic concepts. Adidas is not the only company that focuses on the importance of customized production. McKinsey, Bain, Deloitte, and almost all consulting companies have published reports in recent years on how “personalization of scale†determines the future. In a nutshell, the Speed ​​Factory combines the ideas of distributed production with 3D printing technology while catering to President Trump's idea of ​​bringing manufacturing back to the US. In addition, Adidas's factory relies on robotics, which sparked a discussion about the replacement of human jobs with automation technology. From a less friendly perspective, perhaps the Speed ​​Factory is a well-planned brand marketing campaign. As with many of the innovative ideas of the current era, it is difficult to determine whether the discussion around the speed factory wants to express optimism or criticism. I am very concerned about what this means for the United States. The Atlanta plant in Adidas has not yet been built, so I went to the Ansbach factory. In order to understand the future of manufacturing in the southern United States, I need to go to a cornfield in central Bavaria, Germany. Adidas is headquartered in Herzogenaurach, a small town of 22,000 people on the outskirts of Nuremberg, which gave birth to two brands, Adidas and Hummer. Two competing sports equipment companies were founded by Adolf Dassler and Rudolf Dassler. There are rumors that the split between the two brothers began during World War II. There was a time when the opposition between the two companies caused a split in the local population. Herzogenaurach is nicknamed the “bend neck town†because locals are used to watching their feet while talking to judge each other’s business and social relationships. In the Adidas campus, this is not a problem, because the relationship between everyone here is clear: everyone wears Adidas shoes. The park, known as the "Sports World," covers an area of ​​146 acres and was originally a Nazi air force base. (After being expropriated by the US military in 1945, the base was returned to the German government in 1992 and bought by Adidas five years later.) Some of the original barracks still stood there and were converted into offices. There are glass slabs with façades on the facade, and Laces, an office building that looks and feels like a terminal. Inside Laces, the elegant glass corridor is like a shoe that goes from one end to the other with laces. There are football fields, runways, boxing rooms and outdoor climbing walls in the park. In addition, there are a number of outdoor sports fields that can be used for beach volleyball, basketball and tennis, and employees are indeed using it. At the beginning of July, Adidas employees walked in the park in twos and threes. Inside and outside the stadium, almost everyone wears Adidas sportswear and sneakers. The disc-shaped robotic mower is busy on the grass. The park is full of vitality, and employees from all over the world look healthy and happy. Compared to the sports world, the speed factory outside the 1-hour drive is a relatively bland building. The Speed ​​Factory is located in a white office building in the cornfield, outside the flag of Adidas and the logo of the manufacturing partner, plant operator Oechsler Motion. I came here with other visitors. In the carpeted foyer, we wear heavy rubber shoe covers, which is a protective measure. We walked down the corridor to the back of the building and into the factory. The factory is based on white, very bright, and the area is similar to the Home Depot store. The ceiling is high and there are no windows. There are not many workers here, and there are not many machines. The production line consists of three parts: the robot uses a laser to cut a special knitted fabric, manually trims the shape and sews it, and then manually stitches the fabric to the sole with the machine. At the end of the room, an orange robotic arm is suspended from the base above the foam particle filling machine and operated according to a pre-programmed procedure. There are very few raw materials for sneakers produced in the speed factory: a roll of knitted fabric, a semi-rigid thermoplastic polyurethane tape attached to the outside of the sneaker for shaping and finger width, and a thermal polyurethane white granule for the Adidas iconic Boost sole. The orange neon line imported from Italy and the “floating torsion bar†used to strengthen the support. A worker whistled and placed a specially shaped, laser-cut knit fabric on a conveyor belt. The conveyor belt transports these fabrics through a white glass pipe and heats the thermoplastic polyurethane tape to the fabric to form a precise pattern. A factory worker drove slowly through a white forklift. Another worker transported the knitted fabric to a manually operated sewing machine. The operator of the sewing machine made these fabrics into a three-dimensional shape upper. Later, another worker placed the upper on a device similar to the model's foot and sent it to a large machine with a glass door. After 93 seconds, the door of the machine is closed, a beam of heat is emitted, and then the knitted upper is fused to the sole. In the traditional shoe factory, the whole process is done manually by the workers, and the randomness is very strong. And it looks like a futuristic simple oven. In the end, there is another worker who will be responsible for putting on the shoelaces. The whole process is fascinating. When I returned to Nuremberg on the bus window, I realized that I had just forgotten everything else. This is the best time I have spent in Germany. The speed factory and the storefront are the ideas of the Adidas “future†team. The team is focused on new technologies, similar to the X Labs inside Google. This department is small in scale and only accounts for about 120 people in the 5,000-person park. The team's definition of "future" is broad: 2 to 7 years. "We are like a small company inside Adidas." The tall employee named Claus told me. He took me through the glass door and went to the office of the future team. At the same time, everything he said sounds like magic. "We try to push the company, don't be lazy, open up new areas." Take the storefront factory as an example. Klaus introduced how this concept can be extended to the world. The user (he also mentioned that it is very annoying to use the word "consumer") to order custom clothing anywhere in the world in one go. “The future will become more versatile and more free.†In the center of the future team office, a small industrial robot arm LBR iiwa from the German industrial automation company KUKA holds a sneaker. Engineers are experimenting with methods that can be used in speed plants. The robotic arm is designed for lightweight, complex assembly work and can respond to touch. It's like something in a Pixar cartoon. The engineers of the future team let me train iiwa to do the action, and I need to give it guidance with my own hands. I carefully turned my arm and waited for the robot to repeat the action, but it did not respond. An engineer frowned and clicked on the control panel. I asked the question: What role does the robotic arm play in the speed factory? Just like many other questions for future teams, the answer is either highly confidential or unclear. Tim Lucas, senior engineering director, said: “If you have a robot, you can make a shoe with a completely different material. The robot can work in 3D space. You can develop it very interesting. New material." Klaus came back with a purple drink in his hand. He accompanied me back to the Laces office building, and we passed the MakerLab like the Loft apartment. It mimics the hacker studio, full of fabrics and other materials, as well as sewing machines, woodworking machines and 3D printers. In the atrium of the building, the employees gathered under a tree and tapped on their notebooks. This is lunch time and usually a TED-style presentation. The whole scene is like a startup company made up of athletes. Currently, the world's most market-worthy and most influential companies are from Silicon Valley. Therefore, there is a strong perception in the business world that all companies should become technology companies or face the risk of being eliminated. There is a common saying that either innovation or extinction. Members of the future team often enthusiastically discuss "open source methods" in the development process. In October of this year, when the AM4 series was released, a video showed the picture in the speed factory, and the voice-over sounded the intermittent sound of the astronauts coming back from the distant moon: "Audio data-driven design. Open source innovation. Human And the machine." This sounds a bit like a collection of popular vocabulary in Silicon Valley generated by algorithms. “Innovative production lines. Accelerated manufacturing, shortened from a few months to a few hours. Optimized for athletes.†This is not the first time Adidas has emphasized technology in product and brand communication. In 1984, the company launched a running shoe called Micropacer. The running shoe incorporates a microcomputer that calculates the running distance, speed and heat consumed. In the same year, Adidas also launched a shoe called Fire. This sneaker has built-in foam fillings of different densities that can be removed. In recent years, Adidas has also launched a variety of unique and unique shoes, such as Futurecraft 4D. This sneaker is made with "light and oxygen" and 3D printing technology. Recently, Adidas is still using more environmentally friendly materials, such as the launch of a variety of products made with "Parley Marine Plastics". This is recycled plastic collected from a Maldives by a non-profit organization. But perhaps in addition to these tangible products, Adidas is also changing the way consumers look at fashion for a long time. Since the manufacture of sneakers is often associated with sweatshops in Asia, companies such as Adidas and Nike generally do not advertise the origin of the product. However, with the development of environmentally friendly materials, robots and personalized goods, Adidas is encouraging consumers not only to think about where the product comes from, but also to pay higher prices for the origin story. In fact, traditional factories, such as those in China, have begun mass production of reinforced midsole. Therefore, these products do not necessarily need to be produced in a speed factory. Producing products that are usually from other places in a technologically rich environment is not so much a way of optimizing the supply chain as an idea, a story. Technology, or at least scientific aesthetics, has a halo effect. The Atlanta Speed ​​Factory will bring 160 new jobs after its launch at the end of this year. The key point is that the speed factory's robots do not replace labor, but bring employment opportunities to “higher skill†factory workers. Jobs recruited here include quality inspectors, tailors, process engineers with robotic experience, and technicians who are proficient in operating the machine. Compared to Adidas' annual production of nearly 300 million pairs, there are not too many products here. At least in the short term, speed factory-produced shoes will only be sold to niche groups willing to pay $260 for limited edition shoes. Some economists are optimistic about the concept of a speed factory, which is considered to represent a longer-term trend. Michael Mandel, chief economic strategist at the Progress Policy Institute in Washington, DC, said: "We have finally got rid of the manufacturing trap of the past 20 years." He is talking about large-scale production outsourcing activities in Asia. At present, the development of automation can finally replace the cheap foreign labor, bringing the factory closer to the consumer's location. As manufacturing moves from large-scale production overseas to customized, localized manufacturing, workers will gain new jobs, and some of them will be better able to express themselves. Mandel said: "With regard to manufacturing, we used to adopt distributed production methods. Now I believe that manufacturing will be built around channel distribution." For now, however, Adidas has few incentives to retreat from the global supply chain. In recent years, Adidas has performed very well. In the second quarter of 2017, Adidas' revenue increased 21% year-on-year. All indications are that Adidas has developed better than its main competitor, Nike. “If you are Nike or Adidas and you have earned enough money with these outsourcing factories, then you don’t have to rush to change the status quo and invest in automation.†Sarosh Kuruvilla, Professor of Industrial Relations at Cornell University “People like to talk about how technology changes the world. There is a lot of discussion about such topics. But we must focus on economic benefits. I think the actual process will be much slower.†Conversely, Kuruwela believes that speed factories are not quite a harbinger of a comprehensive large-scale change in US manufacturing, but more than just a company exploring how to keep up with changes in consumer expectations. These expectations are not from competitors like Nike, but from fast fashion companies and technology companies like Amazon. Kuruwela pointed out that if today's consumers expect fast express delivery and a wealth of merchandise choices, it is partly due to the Amazon Prime membership service. In other words, through the speed factory, Adidas tried to develop the ability to quickly order products. Adidas has tried to implant chips in shoes. One day in the future, this approach can collect consumer behavioral data, which in turn leads to more custom designs. Amazon has a lot of data on consumer shopping and spending habits. This spring, Amazon won a patent on "on-demand" production of clothing systems. This is exactly what Adidas' future team expects, and hopefully can be defeated to some extent. During my visit, Adidas Chief Information Officer Michael Voegele referred to the Amazon patent, comparing the sports equipment industry with the current taxi and hospitality industries. "We don't want to be subverted by the outside world," he said. This explains the motivation behind Adidas' construction speed factory. The ghost of the technology industry is faintly visible. This brings a desire and a threat. Looking back at Vogel's words, walking on the streets of Nuremberg, I suddenly felt sad. All of these technological advancements and running shoes can handle 90 degree corners. All of these discussions about innovation, plastics from the ocean, and 3D printed soles have too much uncertainty. 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