Nike, the world’s largest sporting goods company, thought it has discovered a new process that reduces shoe production costs that could bring back outsourced jobs in Asia back to the US. Bloomberg Businessweek reported that, as Nike was designing the production process for a new minimalist running shoe called the Flyknit, the executives were not only excited by the possible blockbuster product but more so by the manufacturing advance that makes the Flyknit possible. “The computer-controlled weaving technology, which knits the entire upper part of the shoe in a single piece that’s then attached to the sole, promises to cut labor costs and production time while also increasing profit margins and opportunities for personalization,” the magazine described. But it seemed that despite the shipping days it take to bring final producs shoes from its factories in Asia to the shelves in the US, Nike realized cheaper labor markets in Asia still rule.
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