WFSGI Forum predicts dramatic change in sporting goods manufacturing

The manufacturing of sporting goods will change in the next decade, according to this week’s World Federation of the Sporting Goods Industry (WFSGI) Forum on the Future of Manufacturing. 
Held in Taipei, Taiwan on Monday and Tuesday (2nd and 3rd December), 200 representatives from footwear, sports apparel and sporting goods manufacture learned about the rapid changes in the manufacture and distribution of sporting goods.

Remarkable India
Dr. Haico Ebbers, Professor of International Economics at Nyenrode Business University, The Netherlands forecasts that India is one of the countries that will change the current landscape of manufacturing of the entire sporting goods dramatically. 

Based on his work for the Centre for International Business and Diplomacy, Ebbers addressed the main macro-economic trends in the years ahead and on the long term up to 2050. 

By that time, the BRIC Countries (Brazil, Russia, India and China) will be in the top five global economies with China ranking as the biggest, the US on the second place and India third.
With its young populations, available not only as a workforce, but more importantly as an emerging domestic market, Dr. Ebbers believes there is massive potential for sporting goods in India.

Labour costs to rise in China 
Steve Evans, Director of the new EPSRC Centre for Innovative Manufacturing in Industrial Sustainability and advisor of the UK government on trends in manufacturing, highlighted that growing labour costs in China will soon put it at an equal level with Portugal or Eastern European countries.

Production automation and customization
Next to the two academics, other speakers from the sporting goods industry, in particular footwear makers, addressed the audience. 

Apache Footwear has been producing products for adidas in India since 2006 and, despite the availability of cheap labour in the country, Apache is increasingly robotising its production, trying to find the right balance between automation and human labour. 

Christian Decker, Managing Director of DESMA, one of the leading suppliers of robotics to footwear manufacturers and partner of this event, challenged the audience and said that the sporting goods industry should be revolutionised. By setting up an entirely new concept with customisation of the customer's needs in view, future producers would leverage the consumer's influence to that extent that it will participate in the brand's success. 

New Realities in Manufacturing
On the second day of the event, an emerging new business model for manufacturing was discussed in all its facets and, in particular, with new technologies that come into play. The consensus of the Forum was that a new business model is needed as, next to the continued growth in salaries in especially Asia, rising energy costs as well as continued increase in air pollution and water scarcity will undoubtedly lead to interventions.

Knowledge exchange across other industries
Being prepared for the new reality in manufacturing involves many aspects which were addressed by several expert speakers. Porsche Consulting presented how companies - across other industries - can implement lean production and just-in-time, the manufacturing principles which are already decades old. 

Additive Manufacturing and 3D printing 
The emerging new business model for manufacturing incorporates new technologies like 3D printing. Kah Fai Leong, Associate Professor at ISR Nanyang Technological University, Singapore noted that this will take, "the complexity out of manufacturing."

It will bring prototyping phases down to hours instead of months, with Leong adding "the perspective on 3D printing is currently like seeing an iceberg. The top is seen, but the possibilities 3D printing offers are huge and have not been conceived yet by many manufacturers. It will change the mindset on manufacturing."

WFSGI Secretary General Robbert de Kock was very pleased with the excited discussions and provoking presentations. He concluded that the two-day Forum addressed all the facets of the emerging new business model for manufacturing sporting goods and bicycle industry and looked forward to sequel of this WFSGI Forum.

Subsequent to this event, the WFSGI held its Manufacturers Committee meeting to discuss the conclusions and outcome of the Forum. 

The WFSGI is an independent, non-profit and non-governmental association formed by sports brands, manufacturers, suppliers, retailers, national federations and other sporting goods industry related businesses. 

Founded in 1978, it is the world authoritative body for the sports industry and is officially recognised by the International Olympic Committe as the industry representative within the Olympic family.

For more information go to www.wfsgi.org

Image courtesy of Apache Footwear.

15th August 2013 - WFSGI MANUFACTURER’S FORUM IN TAIPEI TO DEBATE THE FUTURE OF SPORTING GOODS MANUFACTURING