Case Study
From China to Mexico: How Hickies
Achieved Negative Working Capital
A case study in how nearshore manufacturing transformed a $5M business into a $20M one — by fixing coordination, not production.
The Company
Hickies developed a no-tie shoelace replacement system, producing over 80 million units sold across 50 countries. The product was manufactured using polypropylene (PP) and a proprietary high-performance TPU, required complex injection molding including large multi-cavity tools, and served global OEM clients including Adidas.
Protected by a global patent portfolio, Hickies partnered with Nypro (later acquired by Jabil) — one of the most advanced injection molding companies in the world — with production based in Guangzhou, China.
The Hidden Cost of China
China delivered scale and quality consistency, but the operating model carried a structural cost that compounded with every growth cycle.
30 days production + 60 days ocean freight
50% at PO, 50% at ex-works — before goods ship
Cash was committed roughly 90 days before inventory arrived, with wholesale terms (30–45 days) adding further delay. The business held approximately four months of inventory at any time, and every growth cycle demanded proportional increases in working capital.
“Growth didn't generate cash — it consumed it.”
The Failed First Attempt
With clear economic incentives to move production closer to market, an initial attempt was made to relocate to Mexico. The effort was unsuccessful.
Despite the financial logic being clear, no viable alternative matched the performance of the China-based setup. The coordination infrastructure simply didn't exist.
The Breakthrough
The acquisition of Nypro by Jabil changed the equation entirely. It introduced access to a global manufacturing platform with high-end injection molding capabilities in Mexico — built on the same industrial standards Hickies already relied on in China.
For the first time, the conditions for a viable move were in place: a trusted, proven manufacturing partner already embedded in their process, production quality that could be maintained without starting over, and a manufacturing location closer to the end market.
“This wasn't a manufacturing breakthrough. It was a coordination breakthrough.”
Before — China
- ✕Lead time: ~90 days
- ✕Payment required before shipment
- ✕Inventory: ~4 months on hand
- ✕Revenue collected after delivery
- ✕Capital tied throughout entire cycle
After — Mexico
- ✓Lead time: ~30 days (+ 3 days to San Diego)
- ✓Shift to e-commerce — revenue collected at point of sale
- ✓Supplier payment deferred 30–60 days
- ✓Inventory: ~1 month on hand
- ✓Transition to negative working capital
The Results
The restructuring produced compounding results across every dimension of the business.
From ~4 months to ~1 month on hand. Freeing up cash.
From capital-intensive to cash-generative (negative working capital).
Faster restocking, shorter cycles, real-time demand response. End-to-end supply chain consolidated in North America — resins sourced regionally, packaging suppliers relocated.
Mexico maintained cost parity with China at transition, then became more competitive.
Scaled from $5M to $20M — enabled by working capital freedom and continuous reinvestment.
The Thesis
Hickies succeeded at reshoring. But only because a structural accident made it possible. The Nypro-Jabil integration didn't create manufacturing capability in Mexico — it created the coordination conditions that had always been missing.
Remove that event, and Hickies stays in China. Not because Mexico couldn't produce the part. Because no one had assembled the path to get there.
Manufacturing was never the constraint.
The coordination was.
For every company that gets lucky with a structural event, dozens more are still carrying four months of inventory, financing production before they see revenue, and waiting for an introduction that may never come.
“What required a billion-dollar acquisition to unlock for Hickies, Reshore makes accessible by design.”
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