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 .

 

Community Search:
MacTech Search:

Software Updates via MacUpdate

Sketch 45 - Design app for UX/UI for iOS...
Sketch is an innovative and fresh look at vector drawing. Its intentionally minimalist design is based upon a drawing space of unlimited size and layers, free of palettes, panels, menus, windows, and... Read more
NeoFinder 7.1 - Catalog your external me...
NeoFinder (formerly CDFinder) rapidly organizes your data, either on external or internal disks, or any other volumes. It catalogs all your data, so you stay in control of your data archive or disk... Read more
TunnelBear 3.0.15 - Subscription-based p...
TunnelBear is a subscription-based virtual private network (VPN) service and companion app, enabling you to browse the internet privately and securely. Features Browse privately - Secure your data... Read more
Hopper Disassembler 4.2.5- - Binary disa...
Hopper Disassembler is a binary disassembler, decompiler, and debugger for 32-bit and 64-bit executables. It will let you disassemble any binary you want, and provide you all the information about... Read more
BetterTouchTool 2.261 - Customize Multi-...
BetterTouchTool adds many new, fully customizable gestures to the Magic Mouse, Multi-Touch MacBook trackpad, and Magic Trackpad. These gestures are customizable: Magic Mouse: Pinch in / out (zoom... Read more
Sketch 44.1 - Design app for UX/UI for i...
Sketch is an innovative and fresh look at vector drawing. Its intentionally minimalist design is based upon a drawing space of unlimited size and layers, free of palettes, panels, menus, windows, and... Read more
BetterTouchTool 2.260 - Customize Multi-...
BetterTouchTool adds many new, fully customizable gestures to the Magic Mouse, Multi-Touch MacBook trackpad, and Magic Trackpad. These gestures are customizable: Magic Mouse: Pinch in / out (zoom... Read more
Chromium 59.0.3071.115 - 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. Version 59.0.3071.115: This update has no Flash plug... Read more
SyncTwoFolders 2.2.3 - 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
Myriad 4.1 - $79.00
Myriad is, simply put, one of the best audio batch processors. Totally redesigned, it looks beautiful and delivers incredible performance. Let Myriad do the heavy lifting while you get back to doing... Read more

Latest Forum Discussions

See All

Dive into epic summer adventure with Oce...
Summer may be the best time to enjoy ocean adventures, and now you don’t even have to leave the comfort of your own home, thanks to the folks at Joycity, creators of Oceans & Empires. The old-timey naval MMO is getting a sizable new June Grand... | Read more »
Missile Cards (Games)
Missile Cards 1.0.9 Device: iOS Universal Category: Games Price: $2.99, Version: 1.0.9 (iTunes) Description: "Missile Command meets Solitaire...only with more doomlasers, death, and explosions." | Read more »
Collect mini assassins in 'Assassin...
Assassin's Creed is traveling back in time to the Spanish Inquisition for its latest mobile entry, Assassin's Creed Rebellion. The game is giving the series a look that's a huge departure from its past design, recreating classic characters in a... | Read more »
Animal Crossing is still coming to mobil...
Animal Crossing is still coming to mobile in 2017, according to aWaypointinterview with Nintendo. Announced in 2016, the game was delayed without a defined release window. However, fans of Nintendo's fantasy slice of life game won't have to wait... | Read more »
Ravenscroft 275 Piano (Music)
Ravenscroft 275 Piano 1.0.0 Device: iOS Universal Category: Music Price: $35.99, Version: 1.0.0 (iTunes) Description: Experience the splendor of a Ravenscroft Grand with the most realistic sounding piano ever created for iOS. Launch... | Read more »
This War of Mine gets a new ending and m...
This War of Mine just got a big new update, featuring free DLC that adds a new ending to the game, among other exciting changes. The update is celebrating the game's two-year release anniversary. Apart from the new ending, which will be quite... | Read more »
Summon eight new heroes in Fire Emblem H...
Nintendo keeps coming at us with Fire Emblem Heroes updates, and it doesn't look like that trend is stopping anytime soon. The folks behind the game have just announced the new War of the Clerics Voting Gauntlet, expected to start next Tuesday. [... | Read more »
The best deals on the App Store this wee...
iOS publishers are pulling out all the stops this week -- there's a huge number of seriously great games at discounted prices this week. Let's not waste any time and get right down to business. [Read more] | Read more »
The House of da Vinci (Games)
The House of da Vinci 1.0.0 Device: iOS Universal Category: Games Price: $4.99, Version: 1.0.0 (iTunes) Description: Enter The House of Da Vinci, a new must-try 3D puzzle adventure game. Solve mechanical puzzles, discover hidden... | Read more »
Solve the disappearance of history’s gre...
Blue Brain Games invites you to indulge in an immersive hands-on 3D puzzle adventure in similar vein to The Room series, with its debut release The House of Da Vinci. Set during the historic period of the Italian Renaissance (when Leonardo himself... | Read more »

Price Scanner via MacPrices.net

Will iPad Running iOS 11 Be The ‘Ute’ Of The...
Steve Jobs’ analogy comparing iPads and PCs to cars and trucks respectively is seven years old but still stimulates discussion and debate. Appearing on an All Things D panel in 2010 shortly after the... Read more
Free CarePassport App gives Patients control...
Boston based CarePassport is on a mission to enable patients to take control of their medical records by allowing patients to aggregate, store, share and manage all their medical data including... Read more
Western Digital Launches New My Passport Ultr...
Western Digital Corporation has expanded its WD brand My Passport portable drive line with the redesigned My Passport Ultra drive. In addition to a new metallic look, the drive offers intuitive WD... Read more
Clearance 2016 13-inch MacBook Pros available...
B&H Photo has clearance 2016 13″ MacBook Pros in stock today for up to $210 off original MSRP. Shipping is free, and B&H charges NY & NJ sales tax only: - 13″ 2.9GHz/512GB Touch Bar... Read more
Apple Releases iOS 11 Public Beta; How To Get...
The official release of Apple’s latest mobile operating system iOS 11 is vaguely slated for the fall, but as of June 26, ordinary users can download an iOS 11 public beta. To download the iOS 11... Read more
Extend Life of MacBook Pro Retina 2.0TB With...
MacSales.com/Other World Computing has announced availability of the new OWC 2.0TB Aura Pro Solid State Drive for mid-2012 to early 2013 Apple MacBook Pro with Retina display. One of the fastest... Read more
BBEdit SummerFest 2017 Discount Ends Friday,...
You can get 20% off BBEdit for a limited time in Bare Bones Software’s http://www.eastgate.com/Tinderbox/Specials/SummerFest.html?mc_cid=f2101ca260&mc_eid=[UNIQID]SummerFest 2017 sale and... Read more
Use Apple’s Education discount to save up to...
Purchase a new Mac using Apple’s Education discount, and take up to $300 off MSRP. All teachers, students, and staff of any educational institution qualify for the discount. Shipping is free: - 15″ 2... Read more
Clearance 27-inch 3.3GHz 5K iMac available fo...
Amazon clearance 27″ 3.3GHz 5K iMacs (MK482LL/A) available for $1799.90 including free shipping. Their price is $500 off original MSRP, and it’s the lowest price available for this model from any... Read more
13-inch 1.8GHz/256GB MacBook Air on sale for...
B&H Photo has the updated 2017 13″ 1.8GHz/256GB MacBook Air (MQD42LL/A) in stock and on sale for $1129 including free shipping plus NY & NJ tax only. Their price is $70 off MSRP. Read more

Jobs Board

*Apple* News Product Marketing Mgr., Publish...
…organizational consensus on strategy and vision for publisher tools, authoring, and Apple News Format.Carries this strategy and vision across the organization to 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
Security Data Analyst - *Apple* Information...
…data sources need to be collected to allow Information Security to better protect Apple employees and customers from a wide range of threats.Act as the subject matter Read more
Lead *Apple* Solutions Consultant - Apple I...
…integrity, and trust.Success Metrics/Key Performance Indicators:Quantitative* Year over Year growth in Apple Product and Beyond the Box sales in the assigned Point of Read more
*Apple* Solutions Consultant till v%u00E5r...
…ethics, integrity, and trust.Success Metrics/Key Performance Indicators:QuantitativeYear over Year growth in Apple Product and Beyond the Box sales in the assigned Point Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.