China Losing to Central America as Adidas Hunts Fast Turnaround

Sportswear producers such as Adidas AG are turning to Central America to complement China as a source for apparel as the region’s proximity to the U.S. allows for quick turnaround of orders during peak seasons.

With China’s garment factories producing more for its own growing middle class and wages there rising, companies have begun moving production back to countries within Central America and the Caribbean that also benefit from duty-free access to the U.S. market.