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What happened when Nike tried to move manufacturing to North America?

With the Trump administration’s goal of bringing back manufacturing jobs, we look back at why a recent attempt by Nike to move sneaker production to North America didn’t work.

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"They kept needing more people as production expanded, because it just wasn't as easy to replace people with machines as they'd hoped," said Jon Emont, reporter at the Wall Street Journal.
"They kept needing more people as production expanded, because it just wasn't as easy to replace people with machines as they'd hoped," said Jon Emont, reporter at the Wall Street Journal.
-/AFP via Getty Images

The Trump administration is using tariffs as a way toward their goal of bringing back American manufacturing jobs. But a recent attempt to move Nike sneaker manufacturing from Asia to North America shows how complicated reshoring can be.

Jon Emont, a Wall Street Journal reporter based in Singapore, wrote about Nike’s failed effort. He spoke with “Marketplace” host Kai Ryssdal about the piece.

“They poured millions of dollars into setting up this big factory in Guadalajara, and they had really talented engineers thinking through how can we make a shoe where we just don’t need so many people?” Emont said. “They kept needing more people as production expanded, because it just wasn’t as easy to replace people with machines as they’d hoped. Within a few years they had to close the factory and it was a failed effort.”

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