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)

 
AAPL
$99.18
Apple Inc.
-1.57
MSFT
$45.90
Microsoft Corpora
-0.46
GOOG
$568.27
Google Inc.
-9.09

MacTech Search:
Community Search:

Software Updates via MacUpdate

Cocktail Family License (5 Macs) 7.6.1 -...
Cocktail is a general purpose utility for OS X that lets you clean, repair and optimize your Mac. It is a powerful digital toolset that helps hundreds of thousands of Mac users around the world get... Read more
Cocktail 8.0 Beta 2 - General maintenanc...
Cocktail is a general purpose utility for OS X that lets you clean, repair and optimize your Mac. It is a powerful digital toolset that helps hundreds of thousands of Mac users around the world get... Read more
QuickBooks 2015 16.0.0.1352 R1 - Financi...
QuickBooks 2015 helps you manage your business easily and efficiently. Organize your finances all in one place, track money going in and out of your business, and spot areas where you can save.... Read more
Mac DVDRipper Pro 5.0.1 - Copy, backup,...
Mac DVDRipper Pro is the DVD backup solution that lets you protect your DVDs from scratches, save your batteries by reading your movies from your hard disk, manage your collection with just a few... Read more
Apple OS X bash Update 1.0 - Fix for sec...
The OS X bash Update fixes a security flaw in the bash UNIX shell on OS X 10.9.5 (also on OS X 10.8 and 10.7 [see Related Links below]). OS X 10.9.5 or later Downloads for OS X 10.8 and OS X 10.7 in... Read more
SyncTwoFolders 2.0.5 - Syncs two user-sp...
SyncTwoFolders simply synchronizes two folders. It supports synchronization across mounted network drives and it is a possibility to run a simulation showing in a log what will be done. Please visit... Read more
FinderPop 2.5.7 - Classic Mac utility, n...
FinderPop is a Universal preference pane that extends OS X's contextual menus using a FinderPop Items folder much as the Apple Menu Items folder used to do for the Apple menu. It has other features... Read more
VueScan 9.4.45 - Scanner software with a...
VueScan is a scanning program that works with most high-quality flatbed and film scanners to produce scans that have excellent color fidelity and color balance. VueScan is easy to use, and has... Read more
LibreOffice 4.3.2.2 - Free Open Source o...
LibreOffice is an office suite (word processor, spreadsheet, presentations, drawing tool) compatible with other major office suites. The Document Foundation is coordinating development and... Read more
calibre 2.4 - Complete e-library managem...
Calibre is a complete e-book library manager. Organize your collection, convert your books to multiple formats, and sync with all of your devices. Let Calibre be your multi-tasking digital... Read more

Latest Forum Discussions

See All

Banner Saga (Games)
Banner Saga 1.0.17 Device: iOS Universal Category: Games Price: $9.99, Version: 1.0.17 (iTunes) Description: NOTE: The Banner Saga does NOT run on iPhone 4. iPhone 4S and more modern devices recommended. | Read more »
Beatbuddy HD (Games)
Beatbuddy HD 1.0.2 Device: iOS Universal Category: Games Price: $4.99, Version: 1.0.2 (iTunes) Description: **IMPORTANT** Beatbuddy runs only on iPhone 6, 6 Plus, 5, 5c, 5s, iPad 4, iPad Mini Retina and iPad Air. | Read more »
iKeywi - Customizable 5-Row Keyboard (U...
iKeywi - Customizable 5-Row Keyboard 1.0 Device: iOS Universal Category: Utilities Price: $.99, Version: 1.0 (iTunes) Description: Want to add an extra row to your iPhone/iPad? One of the most popular keyboard extension in iOS... | Read more »
Manage Your Cloud – Wunderlist Now Suppo...
Manage Your Cloud – Wunderlist Now Supports Dropbox Posted by Jessica Fisher on October 1st, 2014 [ permalink ] Universal App - Designed for iPhone and iPad | Read more »
Nexticy Review
Nexticy Review By Jennifer Allen on October 1st, 2014 Our Rating: :: IDEAL FORM CREATIONiPad Only App - Designed for the iPad Nexticy allows you to make your own forms for research purposes or to organize your business better. It’s... | Read more »
Tiny Troopers: Alliance Marches onto the...
Tiny Troopers: Alliance Marches onto the App Store Tomorrow Posted by Jessica Fisher on October 1st, 2014 [ permalink ] Tiny Troopers: Alliance, by Kukouri, is a | Read more »
HeroCraft Introduces Unlimited Sequel to...
HeroCraft Introduces Unlimited Sequel to WW2: Sandbox. Strategy & Tactics Posted by Jessica Fisher on October 1st, 2014 [ permalink ] | Read more »
RGB Express Review
RGB Express Review By Jennifer Allen on October 1st, 2014 Our Rating: :: DELIGHTFUL PUZZLINGUniversal App - Designed for iPhone and iPad Guide trucks along their delivery routes in RGB Express, a testing but charming puzzle game... | Read more »
The Sagas of Fire*Wolf (Games)
The Sagas of Fire*Wolf 1.0 Device: iOS Universal Category: Games Price: $9.99, Version: 1.0 (iTunes) Description: | Read more »
BuggyFun Review
BuggyFun Review By Amy Solomon on October 1st, 2014 Our Rating: iPad Only App - Designed for the iPad BuggyFun allows children to create their own tracks for bugs to interact with for a unique open-ended experience.   | Read more »

Price Scanner via MacPrices.net

ASUS, Lenovo, and Amazon Slug It Out For Tabl...
According to market intelligence firm ABI Research, Apple and Samsung have led the touchscreen tablet market by a substantial margin since Apple energized the category back in 2010. However, ABI says... Read more
Amazon offers 13-inch MacBook Air for $899, $...
Amazon.com has the 13″ 1.4GHz 128GB MacBook Air on sale for $100 off MSRP including free shipping: - 13″ 1.4GHz 128GB MacBook Air: $899.99 Read more
Apple resting On Its iPhone Laurels? – The ‘B...
Apple calls its new iPhone 6 and 6 Plus “The Biggest Advancements in iPhone History,” but does reality live up to the hype? “Seldom have so many waited so breathlessly for so little,” tweeted veteran... Read more
Roundup of Apple Mac and iPad Education disco...
Purchase a new Mac or iPad at The Apple Store for Education and take up to $300 off MSRP. All teachers, students, and staff of any educational institution qualify for the discount. Shipping is free,... Read more
Apple Boycotts German Magazine Computer Bild...
Apple has revoked its PR accreditation of Germany’s Computer Bild, Europe’s best-selling PC magazine, in reaction to Bild’s posting of a “#Bentgate” YouTube video. Axel Telzerow, editor in chief of... Read more
iPhone 6 & iPhone 6 Plus Available in Chi...
Apple has announced that iPhone 6 and iPhone 6 Plus will be available in China beginning Friday, October 17 from the Apple Online Store (http://www.apple.com), Apple’s retail stores, and an expansive... Read more
MacBook Airs on sale for $100 off MSRP, start...
Best Buy has the new 2014 MacBook Airs on sale for $100 off MSRP on their online store. Choose free home shipping or free local store pickup (if available). Prices valid for online orders only, in-... Read more
Apple Releases OS X Mavericks bash Update 1.0...
Apple has released a patch update for OS X Mavericks users to address the recently-detected “Shellshock” security bug in BSD UNIX’s bash shell. Apple says only a few Mac users who had manually... Read more
Pivotal Payments Ready for Apple Pay – FlexPo...
Pivotal Payments, a provider of merchant services and global payment processing solutions, has announced its proprietary FlexPoint platform will support credit and debit transactions through Apple’s... Read more
iStabilizer Announces Tabarm — First Friction...
iStabilizer, a specialist in universal lightweight compact tripods, steady cams, dollies, mounts, and remotes for smartphones, tablets, and cameras, announced today the iStabilizer tabArm, the first... Read more

Jobs Board

*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 (US) - A...
Job Description: Sales Specialist - Retail Customer Service and Sales Transform Apple Store visitors into loyal Apple customers. When customers enter the store, Read more
Senior Event Manager, *Apple* Retail Market...
…This senior level position is responsible for leading and imagining the Apple Retail Team's global event strategy. Delivering an overarching brand story; in-store, Read more
*Apple* Solutions Consultant (ASC) - Apple (...
**Job Summary** The ASC is an Apple employee who serves as an Apple brand ambassador and influencer in a Reseller's store. The ASC's role is to grow Apple Read more
Project Manager / Business Analyst, WW *Appl...
…a senior project manager / business analyst to work within our Worldwide Apple Fulfillment Operations and the Business Process Re-engineering team. This role will work Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.