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
$101.06
Apple Inc.
+0.10
MSFT
$47.06
Microsoft Corpora
-0.46
GOOG
$587.37
Google Inc.
-8.71

MacTech Search:
Community Search:

Software Updates via MacUpdate

Evernote 5.6.0 - Create searchable notes...
Evernote allows you to easily capture information in any environment using whatever device or platform you find most convenient, and makes this information accessible and searchable at anytime, from... Read more
Monosnap 2.2.2 - Versatile screenshot ut...
Monosnap allows you to save screenshots easily, conveniently, and quickly, sharing them with friends and colleagues at once. It's the ideal choice for anyone who is looking for a smart and fast... Read more
Tunnelblick 3.4beta36 - GUI for OpenVPN...
Tunnelblick is a free, open source graphic user interface for OpenVPN on OS X. It provides easy control of OpenVPN client and/or server connections. It comes as a ready-to-use application with all... Read more
SoftRAID 5.0.4 - High-quality RAID manag...
SoftRAID allows you to create and manage disk arrays to increase performance and reliability. SoftRAID's intuitive interface and powerful feature set makes this utility a must have for any Mac OS X... Read more
Audio Hijack Pro 2.11.3 - Record and enh...
Audio Hijack Pro drastically changes the way you use audio on your computer, giving you the freedom to listen to audio when you want and how you want. Record and enhance any audio with Audio Hijack... Read more
Airfoil 4.8.9 - 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
WhatRoute 1.13.0 - Geographically trace...
WhatRoute is designed to find the names of all the routers an IP packet passes through on its way from your Mac to a destination host. It also measures the round-trip time from your Mac to the... Read more
Chromium 37.0.2062.122 - Fast and stable...
Chromium is an open-source browser project that aims to build a safer, faster, and more stable way for all Internet users to experience the web. FreeSMUG-Free OpenSource Mac User Group build is... Read more
Attachment Tamer 3.1.14b9 - Take control...
Attachment Tamer gives you control over attachment handling in Apple Mail. It fixes the most annoying Apple Mail flaws, ensures compatibility with other email software, and allows you to set up how... Read more
Duplicate Annihilator 5.0 - Find and del...
Duplicate Annihilator takes on the time-consuming task of comparing the images in your iPhoto library using effective algorithms to make sure that no duplicate escapes. Duplicate Annihilator detects... Read more

Latest Forum Discussions

See All

This Week at 148Apps: September 15-19, 2...
Expert App Reviewers   So little time and so very many apps. What’s a poor iPhone/iPad lover to do? Fortunately, 148Apps is here to give you the rundown on the latest and greatest releases. And we even have a tremendous back catalog of reviews; just... | Read more »
Kitty Powers’ Matchmaker – Tips, Tricks,...
Hey There, Kittens: | Read more »
Goblin Sword Review
Goblin Sword Review By Andrew Fisher on September 22nd, 2014 Our Rating: :: RETRO GOODNESSUniversal App - Designed for iPhone and iPad Fun visuals, good music, engaging level design, and lots of content make Goblin Sword an... | Read more »
Major New Update for CSR Racing Adds Fer...
Major New Update for CSR Racing Adds Ferrari and Multiplaye​r Posted by Jessica Fisher on September 22nd, 2014 [ permalink ] | Read more »
Veditor Review
Veditor Review By Jennifer Allen on September 22nd, 2014 Our Rating: :: PIMP YOUR VIDEOUniversal App - Designed for iPhone and iPad Want to add stickers and music to your videos? Veditor can do that easily.   | Read more »
1849′s Nevada Silver DLC is Still Search...
A few months ago, I took a look at 1849 from SomaSim. This Gold Rush-themed city builder for iPad had a fair bit going for it, but lacked in a few crucial areas to make it a true stand-out on the App Store. SomaSim has since added in a sandbox mode... | Read more »
Fruit Ninja Will be Reborn With a Massiv...
Fruit Ninja Will be Reborn With a Massive Update and Origins Animation Series Posted by Jessica Fisher on September 22nd, 2014 [ permalink ] Halfbrick Studios is rebuilding | Read more »
Daniel Tiger’s Grr-ific Feelings Review
Daniel Tiger’s Grr-ific Feelings Review By Amy Solomon on September 22nd, 2014 Our Rating: iPad Only App - Designed for the iPad Daniel Tiger’s Grr-ific Feelings includes activities that allow young children explore different... | Read more »
CloudMagic Updated for iOS 8 – Adds Inte...
CloudMagic Updated for iOS 8 – Adds Interactive Notifications, Share Extension, and More Posted by Jessica Fisher on September 22nd, 2014 [ | Read more »
Starbase Annex (Games)
Starbase Annex 1.0 Device: iOS Universal Category: Games Price: $1.99, Version: 1.0 (iTunes) Description: "it’s really very clever... a little bit of Hearthstone and a dash of Eclipse" - PocketTactics.com From the creator of Starbase... | Read more »

Price Scanner via MacPrices.net

New iPhones Score Big in SquareTrade Breakabi...
SquareTrade has announced the iPhone 6 and its larger sibling, iPhone 6 Plus, performed impressively in Breakability testing, and each carries the top Breakability Score in their respective category... Read more
10 Million + First Weekend Sales Set New iPho...
Apple has announced it sold over 10 million new iPhone 6 and iPhone 6 Plus models, a new record, just three days after the launch on September 19. iPhone 6 and iPhone 6 Plus are now available in the... Read more
Betty Crocker Launches New Cookbook for iOS
Betty Crocker, a General Mills brand, an established food industry leader, has announced its free digital cookbook app has been refreshed to make cooking with iPhone, iPad and iPod touch even easier... Read more
Apple restocks some refurbished 2014 MacBook...
The Apple Store has restocked some Apple Certified Refurbished 2014 MacBook Airs, with prices starting at $769. An Apple one-year warranty is included with each MacBook, and shipping is free. These... Read more
13-inch 128GB MacBook Air on sale for $949, s...
B&H Photo has the new 2014 13″ 1.4GHz/128GB MacBook Air on sale for $949.99 including free shipping plus NY tax only. Their price is $50 off MSRP. B&H will also include free copies of... Read more
Apple offering free $25 iTunes Gift Card with...
The Apple Store is offering a free $25 iTunes Gift Card with the purchase of a $99 Apple TV for a limited time. Shipping is free. Read more
Apple refurbished iPod touch available for up...
The Apple Store has Apple Certified Refurbished 5th generation iPod touches available starting at $149. Apple’s one-year warranty is included with each model, and shipping is free. Most colors are... Read more
iFixIt Tears Down iPhone 6; Awards Respectabl...
iFixit notes that even the smaller 4.7″ iPhone 6 is a giant among iPhones; so big that Apple couldn’t fit it into the familiar iPhone form factor. In a welcome reversal of a recent trend to more or... Read more
Phone 6 Guide – Tips Book For Both iPhone 6...
iOS Guides has announced its latest eBook: iPhone 6 Guide. Brought to you by the expert team at iOS Guides, and written by best-selling technology author Tom Rudderham, iPhone 6 Guide is packed with... Read more
How to Upgrade iPhone iPad to iOS 8 without D...
PhoneClean, a iPhone cleaner utility offered by iMobie Inc., reveals a solution for upgrading iPhone and iPad to iOS 8 without deleting photos, apps, the new U2 album or anything. Thanks to more than... Read more

Jobs Board

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
*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
Position Opening at *Apple* - Apple (United...
…customers purchase our products, you're the one who helps them get more out of their new Apple technology. Your day in the Apple Store is filled with a range of 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
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
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.