Greg's bite: bring Apple assembly home
TweetFollow Us on Twitter

Greg's bite: bring Apple assembly home

By Greg Mills

I wrote a piece (http://www.macnews.com/2011/01/11/gregs-bite-what-if-apple-assembled-its...)a couple of weeks ago citing an interesting study (http://www.adbi.org/files/2010.12.14.wp257.iphone.widens.us.trade.defici...) done by the Asian Bank Institute that posed the rhetorical question, "What if Apple assembled products at home instead of China?"

I got feedback that ranged from strong support of the idea to absolute ridicule. Massage the numbers any way you like, but the result is a slightly lower profit at Apple with a major benefit for the US economy. Assembling Apple products in the USA would put up to half a million assembly workers on the national payroll.  

Apple has incredibly high gross profit numbers on its hardware and the demand and sales numbers are defying even the most enthusiastic analyst forecasts each quarter. Apple stock has reached levels that will soon make our favorite little fruit company the most valuable in the world. Decisions Apple makes can have a powerful effect on the US economy. Obama knows that is a fact no one can deny. 

There has been a lot of press about Steve Jobs meeting for dinner with the President and a number of other industry leaders. Steve was seated next to Mr. Obama. The President was recently quoted widely as saying that we needed to get Americans back to work and fix the poor employer climate in this country. I submit that Mr. Obama has it wrong, backwards if you will.  The problem isn't fixed until the underlying issues are first resolved. Make the USA a more predictable and affordable employment zone and let nature take its course.  

The trend of moving assembly "off shore" has its basis in the raw numbers. The study cited above used numbers of about US$6.50 per iPhone to assemble in China vs $68 per iPhone to assemble in the USA. The assembly costs include a whole lot more than just labor costs. Unions and unreasonable employment related laws, as well as an overall more expensive economic environment in the US, have made assembly here prohibitive. What is wrong can be fixed and only then we will see the current 9% unemployment rate drop to a more sustainable level.

One feature that isn't well cooked into the cited study is the likelihood that much more of the assembly process would be automated in the US due to our higher labor costs. Each generation of iPhone has improvements in part count reduction and streamlined final assembly. Should Apple make the fundamental decision to bring assembly back to the USA, planning products that lend themselves to more to automated assembly would help reduce the high cost per product differential we see now. Labor is so relatively cheap in China robotics isn't as viable an alternative as it is here.

Fixing the fundamental problems that have pushed assembly jobs overseas can be fixed with some reasonable sacrifices all the way around.  The government can make employment of Americans affordable and predictable by streamlining federal laws that cost employers a bundle and don't work anyway. Longer term federal tax credits for hiring the unemployed and moving assembly back the USA need to be considered.  

States can compete to provide the best legal environment and bring jobs to their state. There is already considerable competition for new factory construction with long term tax relief. That needs to be applied particularly to those companies that return assembly jobs to the USA.

Unions can back down on demanding typical inflationary benefits and ever higher wages or just plain not be allowed to force unionization under federal law. There was a time when unions were needed to overcome serious abuses of employees, but I think the tail is now wagging the dog and union membership has declined as even the rank and file tend to agree. The balance of power needs to be reset to restore jobs to the unemployed who are willing to work. The undocumented need to be deported and the chronically unemployed put to work.

Companies might make some sacrifices at the bottom line to return to the "Made in the USA" fold. Tax credits for moving assembly back to the USA need to economically viable. It isn't going to happen if there aren't enough incentives that are real and dependable long term. The export of goods made in the USA can help the balance of trade to the benefit of us all.

Employees can make the decision that a assembly job for less money than they are used to is far better than no job at all.  

Finally, consumers need to return to the habit of seeking the little "Made in the USA" label.  While the final cost matters a lot, there was a time patriotic citizens sought the domestic product.  We are still very productive and inventive in this country and need only the structural changes required to restore prosperity to our country by producing more of what we consume.  

Whatever corrections are made need to have a predictable period of effect since business plans years in advance and moving assembly back to the USA won't happen overnight. What has taken years to go wrong will also take years to repair, but outsourcing our jobs has got to stop. Let's reverse the trend.  

That's Greg's Bite for today.

(Greg Mills is currently a graphic and Faux Wall Artist in Kansas City. Formerly a new product R&D man for the paint sundry market, he holds 11 US patents. Greg is an Extra Class Ham Radio Operator, AB6SF, iOS developer and web site designer. He's also working on a solar energy startup using a patent pending process for turning waste dual pane glass window units into thermal solar panels used to heat water see: www.CottageIndustySolar.com Married, with one daughter, Greg writes for intellectual property web sites and on Mac/Tech related issues. See Greg's art web site at
www.gregmills.info He can be emailed at gregmills@mac.com)

 

Community Search:
MacTech Search:

Software Updates via MacUpdate

OmniOutliner Pro 4.2 - Pro version of th...
OmniOutliner Pro is a flexible program for creating, collecting, and organizing information. Give your creativity a kick start by using an application that's actually designed to help you think. It's... Read more
VLC Media Player 2.2.1 - Popular multime...
VLC Media Player is a highly portable multimedia player for various audio and video formats (MPEG-1, MPEG-2, MPEG-4, DivX, MP3, OGG, ...) as well as DVDs, VCDs, and various streaming protocols. It... Read more
Nisus Writer Pro 2.1.1 - Multilingual wo...
Nisus Writer Pro is a powerful multilingual word processor, similar to its entry level products, but brings new features such as table of contents, indexing, bookmarks, widow and orphan control,... Read more
Tinderbox 6.2.0 - Store and organize you...
Tinderbox is a personal content management assistant. It stores your notes, ideas, and plans. It can help you organize and understand them. And Tinderbox helps you share ideas through Web journals... Read more
OmniOutliner 4.2 - Organize your ideas,...
OmniOutliner is a flexible program for creating, collecting, and organizing information. Give your creativity a kick start by using an application that's actually designed to help you think. It's... Read more
Things 2.5.4 - Elegant personal task man...
Things is a task management solution that helps to organize your tasks in an elegant and intuitive way. Things combines powerful features with simplicity through the use of tags and its intelligent... Read more
NeoOffice 2014.10 - Mac-tailored, OpenOf...
NeoOffice is a complete office suite for OS X. With NeoOffice, users can view, edit, and save OpenOffice documents, PDF files, and most Microsoft Word, Excel, and PowerPoint documents. NeoOffice 3.x... Read more
iPhoto Library Manager 4.2 - Manage mult...
iPhoto Library Manager allows you to organize your photos among multiple iPhoto libraries, rather than having to store all of your photos in one giant library. You can browse the photos in all your... Read more
Web Snapper 3.3.8 - Capture entire Web p...
Web Snapper lets you capture Web pages exactly as they appear in your browser. You can send them to a file as images or vector-based, multi-page PDFs. It captures the whole Web page - eliminating the... Read more
TeamViewer 10.0.41404 - Establish remote...
TeamViewer gives you remote control of any computer or Mac over the Internet within seconds, or can be used for online meetings. Find out why more than 200 million users trust TeamViewer! Free for... Read more

Chainsaw Warrior: Lords of the Night has...
It's time to put the Darkness back in its place now that Chainsaw Warrior: Lords of the Night has officially made it to iOS. | Read more »
A World of Ice and Fire Lets You Stalk 2...
George R. R. Martin’s A World of Ice and Fire, by Random House, is a mobile guide to the epic series. The new update gives you the Journeys map feture that will let you track the movements of 25 different characters. But don't worry, you can protect... | Read more »
Gameloft Announces Battle Odyssey, a New...
Battle Odyssey, Gameloft's newest puzzle RPG, is coming to the App Store next week. Set in the world of Pondera, you will need to control the power of the elements to defend the world from evil. You'll be able to entlist over 500 allies to aid you... | Read more »
Fusion - HDR Camera (Photography)
Fusion - HDR Camera 1.0.0 Device: iOS Universal Category: Photography Price: $1.99, Version: 1.0.0 (iTunes) Description: Fusion creates HDR (high dynamic range) photos by capturing different exposures and then combining them into one... | Read more »
Sago Mini Toolbox (Education)
Sago Mini Toolbox 1.1 Device: iOS Universal Category: Education Price: $2.99, Version: 1.1 (iTunes) Description: Come build with the Sago Mini friends! Use a wrench, try a saw, or hammer some nails. From sewing hand puppets to... | Read more »
You Should Probably Grab Hitman GO While...
Hitman GO is a surprisingly cool (yet also incredibly drastic) departure from the Hitman series. It's well worth playing for any puzzle game fans out there, and at the moment you can get your hands - or garrotte if you will - on it for a mere $0.99... | Read more »
IFTTT is Bringing Do Button and Do Note...
IFTTT has announced Do Button and Do Note for the Apple Watch. Do Button lets you make your own personalized button that can connect to things like your Google Drive, control the temperature in your home with Nest Thermostat, or turn the lights on... | Read more »
How Many Days, Hours, and Minutes Are Le...
Countdown, by Yves Tscherry, is now available on the App Store. The app keeps track of countdowns to your favorite things such as someones birthday or days till the New Year. You can display the time in seconds, minutes, hours, days, weeks, months,... | Read more »
The All-New Misfit 2.0 App is Available...
Misfit has just given their app a complete overhaul. Misfit 2.0 now has a brand new interface with a sleek design and is easier to navigate. You'll be able to sync your Misfit device and look up health and fitness information faster than ever before... | Read more »
Halo: Spartan Strike (Games)
Halo: Spartan Strike 1.0 Device: iOS Universal Category: Games Price: $5.99, Version: 1.0 (iTunes) Description: Delve into 30 challenging missions through cities and jungles using a devastating arsenal of weapons, abilities and... | Read more »

Price Scanner via MacPrices.net

TigerText Introduces First Secure Enterprise...
TigerText, a provider of secure, real-time messaging for the enterprise, has announced the launch of TigerText for the Apple Watch. TigerText for the Apple Watch enables users to securely send and... Read more
The Conservation Fund Partners with Apple To...
The Conservation Fund has announced that it will partner with Apple to help protect working forests in the United States. The Apple initiative will conserve more than 36,000 acres of working... Read more
Clearance 13-inch 2.6GHz Retina MacBook Pro a...
B&H Photo has clearance 2014 13″ 2.6GHz/128GB Retina MacBook Pros now available for $1099, or $200 off original MSRP. Shipping is free, and B&H charges NY sales tax only. Read more
Apple refurbished 2014 13-inch Retina MacBook...
The Apple Store has Apple Certified Refurbished 2014 13″ Retina MacBook Pros available for up to $400 off original MSRP, starting at $979. An Apple one-year warranty is included with each model, and... Read more
iMacs on sale for up to $205 off MSRP, NY tax...
B&H Photo has 21″ and 27″ iMacs on sale for up to $205 off MSRP including free shipping plus NY sales tax only: - 21″ 1.4GHz iMac: $1019 $80 off - 21″ 2.7GHz iMac: $1189 $110 off - 21″ 2.9GHz... Read more
Sale! 16GB iPhone 5S for $1 with service
Best Buy is offering 16GB iPhone 5Ss for $1.00 with 2-year activation at a participating cellular provider. Choose free home shipping and activation, or buy online and activate during in-store pickup... Read more
Apple refurbished 2014 MacBook Airs available...
The Apple Store has Apple Certified Refurbished 2014 MacBook Airs available starting at $679. An Apple one-year warranty is included with each MacBook, and shipping is free. These are currently the... Read more
27-inch 3.5GHz 5K iMac on sale for $2349, sav...
 Adorama has the 27″ 3.5GHz 5K iMac in stock today and on sale for $2349 including free shipping plus NY & NJ sales tax only. Their price is $150 off MSRP. For a limited time, Adorama will... Read more
Save up to $380 on an iMac with Apple refurbi...
The Apple Store has Apple Certified Refurbished iMacs available for up to $380 off the cost of new models. Apple’s one-year warranty is standard, and shipping is free: - 27″ 3.5GHz 5K iMac – $2119 $... Read more
iFixIt Teardown Awards 12-IInch Retina MacBoo...
iFixIt has posted its illustrated teardown of the new 12-inch MacBook Retina. They note that this new MacBook is less than half the thickness of the last Apple notebook called just “MacBook” back in... Read more

Jobs Board

*Apple* Solutions Consultant - Retail Sales...
**Job Summary** As an Apple Solutions Consultant (ASC) you are the link between our customers and our products. Your role is to drive the Apple business in a retail Read more
*Apple* Retail - Multiple Positions (US) - A...
Sales Specialist - Retail Customer Service and Sales Transform Apple Store visitors into loyal Apple customers. When customers enter the store, you're also the Read more
*Apple* Retail - Multiple Positions - Apple,...
Job Description: Sales Specialist - Retail Customer Service and Sales Transform Apple Store visitors into loyal Apple customers. When customers enter the store, Read more
*Apple* Solutions Consultant - Retail Sales...
**Job Summary** As an Apple Solutions Consultant (ASC) you are the link between our customers and our products. Your role is to drive the Apple business in a retail Read more
*Apple* TV Live Streaming Frameworks Test En...
**Job Summary** Work and contribute towards the engineering of Apple 's state-of-the-art products involving video, audio, and graphics in Interactive Media Group (IMG) at Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.