Adidas will open an automated, robot-staffed factory next year
BII
Adidas announced on Wednesday that it will be opening a factory in Atlanta in 2017 where shoes will be produced entirely by robots, according to Engadget.
In a press release the company outlined how the factory, dubbed the Speedfactory, will allow the company to manufacture shoes faster while bringing that production closer to US consumers.
The Speedfactory is designed to make shoes at a rapid pace on its completely automated assembly line. The company says it expects the 74,000 square foot facility to be fully operational by the end of next year. Adidas aims to manufacture 50,000 shoes next year and ramp up production from there.
This move will help Adidas rely less on its Asian manufacturing facilities, where wages have been rising and which have drawn criticism for their labor practices. In June, the Wall Street Journal noted that Western manufacturers were being driven out of Asia due to rising wages for laborers, with Adidas openingan automated factory in its home country of Germany for the first time in 30 years earlier this year. As factories can be more automated, dropping the price of labor, it’s expected that manufacturers will bring the factories closer to where the products are sold so they can reduce logistics costs.
As time goes on, we anticipate that many manufacturers will automate portions of their workflow by integrating into the IoT. Producers will likely look to move manufacturing from emerging markets back into primary sales markets to reduce their environmental impact and lower shipping costs.
Businesses throughout the world are increasingly using robots to automate portions of their workflow.
Traditionally, robots have been used primarily in manufacturing. But other industries including healthcare, shipping and logistics, food services, retail, hospitality, and more are starting to also use robots. For example, hospitals are using robots to assist in surgery, retail stores are testing robots to take inventory, and warehouses are using robots help sort packages.
John Greenough, senior research analyst for BI Intelligence, Business Insider's premium research service, has compiled a detailed report on enterprise robotics that examines the rising use of robots across many industries. It examines top use cases, market leaders, growth drivers, potential for workforce automation, the top barriers, and includes market forecasts on shipments and investment in robots between 2015-2021.
Here are some of the key takeaways from the report:
- We expect enterprise robotic shipments to nearly triple between 2015-2021.
- Manufacturing will continue to be the top adopter of robots. A recent Boston Consulting Group (BCG) survey found 44% of US manufacturers and 66% of German manufacturers plan to install autonomous robots and assistance systems within the next five years.
- Rising wages around the world is just one of the key reasons enterprises are beginning to leverage robotics.
- Robots have the potential to displace jobs, meaning that while they might take some more labor intensive jobs they have the potential to create new jobs for working on robots.
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