A proposal for Apple that puts Americans to work
TweetFollow Us on Twitter

A proposal for Apple that puts Americans to work

The following is an opinion editorial provided by Long-Stanton Group CEO, Dan Cunningham. It was originally published in the Cincinnati Enquirer on Sunday, July 8, 2012:

I have a Billion Dollar idea for Apple: build an iPhone plant in Cincinnati and eventually other U.S. cities to supply the U.S. market with iPhones.

This would yield a billion dollars in additional profit to Apple because of the assurance of long-term sustainable product dominance for Apple, the ability to manufacture ‘mass customized' iPhones in the U.S., and the removal of 35 days of rapidly changing inventory in transit from China to the U.S. This projected profit is based on the forecast of 44 million iPhones to be sold in the U.S. in 2012 (11.6 million in 2011 Q4) and increasing the profit by $23 each.

Because the U.S. market is demanding such a high number of units of iPhones, the plant that I am proposing would be completely automated, and highly flexible to the point that there would be no labor advantage to making the iPhone in China versus the U.S. Even with the automation, a plant in Cincinnati would create many good, long term US jobs at Apple and its suppliers.

One might ask "What about the critical supply chains that are needed to make and innovate the iPhones?" which was also asked by Charles Duhigg and Keith Brasher of the New York Times in their report "How the U.S. Lost Out on the iPhone Work." Building a flexible supply chain is a good strategy as well as good business. It is helps in building a moat around your business and keeps competitors at bay.

Toyota is an excellent example of a company that has enjoyed tremendous success by building its cars in the US with a domestic supply chain. I submit to you that creating a critical supply chain in Cincinnati or the U.S. will not be a problem. For example, if you need a shorter screw made you can get one in Cincinnati in three hours. (Duhigg reported that it would take six hours in China.) Highly flexible supply chains are the hallmark of U.S. Manufacturers.

Full disclosure: Long Stanton is a 150 year old manufacturing company with plants in Cincinnati and China. As we are the ones writing the checks in our various locations, we are very familiar with the constantly fluctuating manufacturing costs including labor, material and the supply chain cultures and the ability to respond rapidly in both the U.S. and China.

In October 2011, it was estimated by Isuppli.com that the labor cost to make an iPhone was $8.00 each, plus a material cost of $188. Since that estimate came out the Chinese manufacturer, Foxconn has increased its employee wages by 16%-25%.

Several commentators on Apple's manufacturing in China, including Mr. Duhigg, have brought forward an estimate of $10-$65 additional cost per phone if it was made in America versus China. In my experience in both countries, I would put the cost increase at closer to $10 each. When you factor in long term sustainability, I can argue it costs less in the U.S. than China.

Regarding Apples long-term success, Harvard Business School Professors Gary Pisano and Willy Shih warn that companies which separate R&D from critical supply chains and manufacturing are putting their businesses at risk. They conclude "Where major processes are evolving rapidly, and can have a huge impact on the product… the risk of separating design and manufacturing are enormous…" To simplify, Apple has been running through a rain storm and not getting wet.

My suggestion: let the China factories serve the China markets, let the new U.S. factories serve the U.S. markets, etc.

If Cincinnati can build jet engines for the Boeing 787 Dreamliner (General Electric) for the world and market Tide (plus many other Proctor and Gamble products), then Cincinnati can be depended upon to manufacture and market the iPhones to the U.S.

Apple is undoubtedly thinking about its next move. In February 2011, President Obama asked Steve Jobs, "What would it take to make iPhones in the United States?" Jobs answered "Those jobs aren’t coming back." I respectfully submit it doesn’t have to be that way. Building iPhones in the U.S., to increase Apples profit and insure its long-term success, is an idea whose time has come.

Daniel B. Cunningham is the president/CEO of the Long-Stanton Group, a 150 year old family business that was named Family Business of the Decade in 2009, in Cincinnati, Ohio. You can contact him at danc@longstanton.com .

 
AAPL
$104.88
Apple Inc.
+1.89
MSFT
$44.77
Microsoft Corpora
+0.39
GOOG
$544.90
Google Inc.
+12.19

MacTech Search:
Community Search:

Software Updates via MacUpdate

jAlbum Pro 12.2.4 - Organize your digita...
jAlbum Pro has all the features you love in jAlbum, but comes with a commercial license. With jAlbum, you can create gorgeous custom photo galleries for the Web without writing a line of code!... Read more
jAlbum 12.2.4 - Create custom photo gall...
With jAlbum, you can create gorgeous custom photo galleries for the Web without writing a line of code! Beginner-friendly, with pro results Simply drag and drop photos into groups, choose a design... Read more
ExpanDrive 4.1.7 - Access remote files o...
ExpanDrive builds cloud storage in every application, acts just like a USB drive plugged into your Mac. With ExpanDrive, you can securely access any remote file server directly from the Finder or... Read more
OmniOutliner Pro 4.1.3 - Pro version of...
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'... Read more
Evernote 5.6.2 - 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
OmniOutliner 4.1.3 - 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
BBEdit 11.0 - Powerful text and HTML edi...
BBEdit is the leading professional HTML and text editor for the Mac. Specifically crafted in response to the needs of Web authors and software developers, this award-winning product provides a... Read more
Apple Security Update 2014-005 - For OS...
Apple Security Update is recommended for all users and improves the security of Mac OS X. For information on the security content of this update, please visit this website: http://support.apple.com/... Read more
EyeTV 3.6.6 - Watch and record TV on you...
EyeTV brings a rich TV experience to your Mac. Watch live TV on your Mac. Pause, rewind, and record whenever you want. EyeTV gives you powerful control over what you watch and how you watch it. Put... Read more
RapidWeaver 6.0 - Create template-based...
RapidWeaver is a next-generation Web design application to help you easily create professional-looking Web sites in minutes. No knowledge of complex code is required, RapidWeaver will take care of... Read more

Latest Forum Discussions

See All

Garruk Gets His Revenge in a New Magic 2...
Garruk Gets His Revenge in a New Magic 2015 Expansion, Coming This November Posted by Jessica Fisher on October 23rd, 2014 [ permalink ] | Read more »
Sentinels of the Multiverse Review
Sentinels of the Multiverse Review By Rob Thomas on October 23rd, 2014 Our Rating: :: SENTINELS ASSEMBLEiPad Only App - Designed for the iPad Greater Than Games’ tabletop classic, Sentinels of the Multiverse swoops in to save the... | Read more »
Build Your Own Fantasy Football Dynasty...
Build Your Own Fantasy Football Dynasty with Draft Day Posted by Jessica Fisher on October 23rd, 2014 [ permalink ] Universal App - Designed for iPhone and iPad | Read more »
Cars: Fast as Lightning – Tips, Tricks,...
Hey there, Stickers: Want to know all about how impressed we were with Radiator Springs? Check out our Cars: Fast as Lightning review! Cars: Fast as Lightning is a cute and fun app that combines racing and town-building with the charisma and... | Read more »
Jam Messenger Review
Jam Messenger Review By Jennifer Allen on October 23rd, 2014 Our Rating: :: SIMPLE MESSAGINGiPhone App - Designed for the iPhone, compatible with the iPad Want a very quick way to send push-based messages? Jam Messenger is basic... | Read more »
Felllice (Games)
Felllice 1.0 Device: iOS Universal Category: Games Price: $.99, Version: 1.0 (iTunes) Description: EXCLUSIVE PRICE DROP! 50% OFF FOR A LIMITED TIME! EAT EAT EAT AND GROW ! | Read more »
The Arrow Game: by Grazie Media (Games)
The Arrow Game: by Grazie Media 1.0 Device: iOS Universal Category: Games Price: $.99, Version: 1.0 (iTunes) Description: Guide a flying arrow through skyscrapers and city streets to hit a distant target. Experience an endless... | Read more »
Worldly (Games)
Worldly 1.2 Device: iOS Universal Category: Games Price: $2.99, Version: 1.2 (iTunes) Description: | Read more »
Money Pro - EASY! Bills, Budgets and Acc...
Money Pro - EASY! Bills, Budgets and Accounts w/ Sync 1.0 Device: iOS Universal Category: Finance Price: $4.99, Version: 1.0 (iTunes) Description: Manage money like a pro. Money Pro is the next generation of Money app (over 2 million... | Read more »
Pro Strategy Football 2014 (Games)
Pro Strategy Football 2014 2014.141001 Device: iOS Universal Category: Games Price: $4.99, Version: 2014.141001 (iTunes) Description: Take the proven strategy of the PSF franchise and add in Casual Play, improved graphics and... | Read more »

Price Scanner via MacPrices.net

Apple refurbished Time Capsules available sta...
The Apple Store has certified refurbished Time Capsules available for up to $60 off MSRP. Apple’s one-year warranty is included with each Time Capsule, and shipping is free: - 2TB Time Capsule: $255... Read more
Textilus New Word, Notes and PDF Processor fo...
Textilus is new word-crunching, notes, and PDF processor designed exclusively for the iPad. I haven’t had time to thoroughly check it out yet, but it looks great and early reviews are positive.... Read more
WD My Passport Pro Bus-Powered Thunderbolt RA...
WD’s My Passport Pro RAID solution is powered by an integrated Thunderbolt cable for true portability and speeds as high as 233 MB/s. HighlightsOverviewSpecifications Transfer, Back Up And Edit In... Read more
Save with Best Buy’s College Student Deals
Take an additional $50 off all MacBooks and iMacs at Best Buy Online with their College Students Deals Savings, valid through November 1st. Anyone with a valid .EDU email address can take advantage... Read more
iPad Air 2 & iPad mini 3 Best Tablets Yet...
The new iPads turned out to be pretty much everything I’d been hoping for and more than I’d expected.”More” particularly in terms of a drinking-from-a-firehose choice of models and configurations,... Read more
Drafts 4 Reinvents iOS Productivity App
N Richland Hills, Texas based Agile Tortoise has announced the release of Drafts 4 for iPhone and iPad. Drafts is a quick capture note taking app with flexible output actions. Drafts 4 scales from... Read more
AT&T accepting preorders for new iPads fo...
AT&T Wireless is accepting preorders for the new iPad Air 2 and iPad mini 3, cellular models, for $100 off MSRP with a 2-year service agreement: - 16GB iPad Air 2 WiFi + Cellular: $529.99 - 64GB... Read more
Apple offering refurbished Mac Pros for up to...
The Apple Store is offering Apple Certified Refurbished 2013 Mac Pros for up to $600 off the cost of new models. An Apple one-year warranty is included with each Mac Pro, and shipping is free. The... Read more
Select MacBook Airs $100 off MSRP, free shipp...
B&H Photo has 2014 a couple of MacBook Airs on sale for $100 off MSRP. Shipping is free, and B&H charges NY sales tax only. They also include free copies of Parallels Desktop and LoJack for... Read more
13-inch 2.5GHz MacBook Pro on sale for $100 o...
B&H Photo has the 13″ 2.5GHz MacBook Pro on sale for $999.99 including free shipping plus NY sales tax only. Their price is $100 off MSRP. Read more

Jobs Board

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
*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
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.