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
$97.67
Apple Inc.
+1.41
MSFT
$43.63
Microsoft Corpora
+0.89
GOOG
$511.17
Google Inc.
-13.34

MacTech Search:
Community Search:

Software Updates via MacUpdate

MenuMeters 1.8 - CPU, memory, disk, and...
MenuMeters is a set of CPU, memory, disk, and network monitoring tools for Mac OS X. Although there are numerous other programs which do the same thing, none had quite the feature set I was looking... Read more
Coda 2.5 - One-window Web development su...
Coda is a powerful Web editor that puts everything in one place. An editor. Terminal. CSS. Files. With Coda 2, we went beyond expectations. With loads of new, much-requested features, a few... Read more
Arq 4.6.1 - Online backup to Google Driv...
Arq is super-easy online backup for the Mac. Back up to your own Google Drive storage (15GB free storage), your own Amazon Glacier ($.01/GB per month storage) or S3, or any SFTP server. Arq backs up... Read more
Airfoil 4.8.10 - Send audio from any app...
Airfoil allows you to send any audio to AirPort Express units, Apple TVs, and even other Macs and PCs, all in sync! It's your audio - everywhere. With Airfoil you can take audio from any... Read more
Apple iMovie 10.0.6 - Edit personal vide...
With an all-new design, Apple iMovie lets you enjoy your videos like never before. Browse your clips more easily, instantly share your favorite moments, and create beautiful HD movies and Hollywood-... Read more
OnyX 2.8.8 - Maintenance and optimizatio...
OnyX is a multifunctional utility for OS X. It allows you to verify the startup disk and the structure of its System files, to run miscellaneous tasks of system maintenance, to configure the hidden... Read more
Parallels Desktop 10.1 - Run Windows app...
Parallels Desktop is simply the world's bestselling, top-rated, and most trusted solution for running Windows applications on your Mac. With Parallels Desktop for Mac, you can seamlessly run both... Read more
Apple Keynote 6.5 - Apple's present...
Apple Keynote makes it simple to create and deliver beautiful presentations. Powerful tools and dazzling effects bring your ideas to life. You can work seamlessly between Mac and iOS devices. And... Read more
OmniPlan 2.3.7 - Robust project manageme...
With OmniPlan, you can create logical, manageable project plans with Gantt charts, schedules, summaries, milestones, and critical paths. Break down the tasks needed to make your project a success,... Read more
Flavours 1.1.16 - Create and apply theme...
Flavours is a Mac application that allow users to create, apply and share beautifully designed themes. Classy Give your Mac a gorgeous new look by applying delicious themes! Easy Unleash your... Read more

Latest Forum Discussions

See All

My Very Hungry Caterpillar (Education)
My Very Hungry Caterpillar 1.0.0 Device: iOS Universal Category: Education Price: $3.99, Version: 1.0.0 (iTunes) Description: Care for your very own Very Hungry Caterpillar! My Very Hungry Caterpillar will captivate you as he crawls... | Read more »
Dungeon Dick (Games)
Dungeon Dick 1.1 Device: iOS Universal Category: Games Price: $.99, Version: 1.1 (iTunes) Description: Dungeon Dick is a fantasy adventure where you must discover the wicked plot to destroy the lands . 'Fling' at your foes and land... | Read more »
Here’s How the Apple Watch Could Transfo...
With the Apple Watch’s generic release date of, “early 2015” hovering on the horizon, it’s only a matter of time before gamers begin to ask “What’s in it for us?” The obvious choice would be to place entire games directly on the face of the watch,... | Read more »
Republique Episode 3: Ones & Zeroes...
Republique Episode 3: Ones & Zeroes is Available Now Posted by Rob Rich on October 17th, 2014 [ permalink ] Universal App - Designed for iPhone and iPad | Read more »
Loot Raiders Review
Loot Raiders Review By Campbell Bird on October 17th, 2014 Our Rating: :: PRESS BUTTON, GET LOOTUniversal App - Designed for iPhone and iPad This menu-based loot game is suitable to compel those with pretty extreme loot lust.   | Read more »
Angry Birds are Crashing Puzzle & Dr...
Angry Birds are Crashing Puzzle & Dragons Next Week Posted by Rob Rich on October 17th, 2014 [ permalink ] Next week, Puzzle & Dragons is getting a little angry. Because, you know, Angry Birds. It’s a… a pun. I thought… never mind. | Read more »
Incandescence Review
Incandescence Review By Andrew Fisher on October 17th, 2014 Our Rating: :: ALL TAPPED OUTUniversal App - Designed for iPhone and iPad Incandescence promises intense tapping action, but isn’t particularly fun.   | Read more »
Lion Pig (Games)
Lion Pig 1.0 Device: iOS Universal Category: Games Price: $1.99, Version: 1.0 (iTunes) Description: "Leaving aside the biology of how a pig and a lion might meet, fall in love, and create this curious cross-breed, Lion Pig is a... | Read more »
Zero Lives (Games)
Zero Lives 1.0 Device: iOS Universal Category: Games Price: $2.99, Version: 1.0 (iTunes) Description: Zero Lives is a puzzle game. Simple and elegant at its core but deep and captivating the more you play. Each puzzle will challenge... | Read more »
#SUPERHYPER (Games)
#SUPERHYPER 001 Device: iOS Universal Category: Games Price: $.99, Version: 001 (iTunes) Description: "This is a game that fans of challenging minimalist arcade games, not to mention pixel art, should keep an eye on" - Touch Arcade "... | Read more »

Price Scanner via MacPrices.net

Apple Pay Available to Millions of Visa Cardh...
Visa Inc. brings secure, convenient payments to iPad Air 2 and iPad mini 3as well as iPhone 6 and 6 Plus. Starting October 20th, eligible Visa cardholders in the U.S. will be able to use Apple Pay,... Read more
Textkraft Pocket – the missing TextEdit for i...
infovole GmbH has announced the release and immediate availability of Textkraft Pocket 1.0, a professional text editor and note taking app for Apple’s iPhone. In March 2014 rumors were all about... Read more
C Spire to offer iPad Air 2 and iPad mini 3,...
C Spire on Friday announced that it will offer iPad Air 2 and iPad mini 3, both with Wi-Fi + Cellular, on its 4G+ LTE network in the coming weeks. C Spire will offer the new iPads with a range of... Read more
Belkin Announces Full Line of Keyboards and C...
Belkin International has unveiled a new lineup of keyboard cases and accessories for Apple’s newest iPads, featuring three QODE keyboards and a collection of thin, lightweight folios for both the... Read more
Verizon offers new iPad Air 2 preorders for $...
Verizon Wireless is accepting preorders for the new iPad Air 2, cellular models, for $100 off MSRP with a 2-year service agreement: - 16GB iPad Air 2 WiFi + Cellular: $529.99 - 64GB iPad Air 2 WiFi... Read more
Price drops on refurbished Mac minis, now ava...
The Apple Store has dropped prices on Apple Certified Refurbished previous-generation Mac minis, with models now available starting at $419. Apple’s one-year warranty is included with each mini, and... Read more
Apple refurbished 2014 MacBook Airs available...
The Apple Store has Apple Certified Refurbished 2014 MacBook Airs available for up to $180 off the cost of new models. An Apple one-year warranty is included with each MacBook, and shipping is free.... Read more
Refurbished 2013 MacBook Pros available for u...
The Apple Store has Apple Certified Refurbished 13″ and 15″ MacBook Pros available starting at $929. Apple’s one-year warranty is standard, and shipping is free: - 13″ 2.5GHz MacBook Pros (4GB RAM/... Read more
WaterField Designs Unveils Outback iPad Slip...
Fresh on the heels of Apple’s announcement Thursday, WaterField Designs unveils its new Outback Slip Case for the iPad Air 2 and iPad mini 3 — a custom-fitted case for the just-announced Apple iPads... Read more
Apple Introduces iPad Air 2 & iPad mini 3...
Apple on Thursday introduced iPad Air 2, slimmed down again to just 6.1 mm, and weighing less than a pound. iPad Air 2 also features an improved Retina display claimed to deliver enhanced contrast... Read more

Jobs Board

Position Opening at *Apple* - Apple (United...
**Job Summary** At the Apple Store, you connect business professionals and entrepreneurs with the tools they need in order to put Apple solutions to work in their Read more
Position Opening at *Apple* - Apple (United...
**Job Summary** The Apple Store is a retail environment like no other - uniquely focused on delivering amazing customer experiences. As an Expert, you introduce people Read more
Position Opening at *Apple* - Apple (United...
**Job Summary** As businesses discover the power of Apple computers and mobile devices, it's your job - as a Solutions Engineer - to show them how to introduce these Read more
Position Opening at *Apple* - Apple (United...
…Summary** As a Specialist, you help create the energy and excitement around Apple products, providing the right solutions and getting products into customers' hands. You Read more
Project Manager, *Apple* Financial Services...
**Job Summary** Apple Financial Services (AFS) offers consumers, businesses and educational institutions ways to finance Apple purchases. We work with national and Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.