In 2015, Nike set out to transform how sneakers are made. Hoping to bring manufacturing closer to home, the company invested millions in a high-tech factory in Mexico that would rely on machines instead of low-wage workers overseas. But the project quickly ran into unexpected problems. Robots struggled with the soft, flexible materials used in sneakers, which expand and contract with temperature changes. Tasks like gluing soles and stitching fabrics proved much harder to automate than expected. Rather than shrinking the workforce, Nike’s factory ended up with about 5,000 employees—more than double the original plan—and higher costs than the company’s plants in Asia.
At the heart of the problem was the sneaker itself. Over the past two decades, sneakers have become much more than athletic shoes. They are now cultural symbols and major fashion accessories. Consumers expect new styles, limited editions, and persistent innovation. While machines excel at repetitive tasks using standardized materials, modern sneakers demand constant change and fine detail. Unlike making cars or phones, sneaker production must adapt to ever-shifting designs and trends. Ironically, the global popularity of sneakers made them harder, not easier, to mass-produce with machines. The very success that made sneakers a cultural powerhouse also made domestic manufacturing less realistic.
By 2019, Nike shut down its automation project, joining Adidas and Under Armour in returning most production to Asia. Even today, despite new U.S. tariffs on Chinese, Vietnamese, and Indonesian goods, sneaker brands continue to rely on overseas factories. Nike’s experience shows that automation cannot easily replace human skill, especially in industries where consumers demand constant change and individuality. As companies weigh the costs of tariffs against the complexity of manufacturing, they face a hard truth: flexibility still depends on people.
Questions:
- Why is it difficult for shoe companies like Nike to automate the production of sneakers?
- Do you think consumers will continue to demand new and innovative sneaker designs that are difficult to manufacture?
Source: Jon Emont, “Why It’s So Difficult for Robots to Make Your Nike Sneakers,” The Wall Street Journal, April 21, 2025.