Can trainers be made in the US without cheap labour?
Summary
Keen, a shoe company, has opened a new factory in Kentucky with a focus on using automation to mitigate high labor costs in the United States. Although Keen manufactures only a small portion of its shoes domestically, the company uses advanced robotics to produce goods efficiently and economically. Despite these efforts, the U.S. shoemaking industry still relies heavily on global supply chains.Key Facts
- Keen is a family-owned shoe company that recently opened a factory in Kentucky.
- The factory uses automation and robots to reduce labor costs.
- U.S. staffing costs are significantly higher than in Asia, about 10 to 12 times more.
- Only 9% of Keen's shoes are made in America; most are still made overseas.
- 99% of shoes sold in the U.S. are imported from countries like China, Vietnam, and Indonesia.
- Automation helps the Kentucky plant operate with fewer workers than similar factories overseas.
- Shoemaking in the U.S. faces challenges due to the lack of a domestic supply chain for materials.
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