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
$119.00
Apple Inc.
+1.40
MSFT
$47.75
Microsoft Corpora
+0.28
GOOG
$540.37
Google Inc.
-0.71

MacTech Search:
Community Search:

Software Updates via MacUpdate

HoudahSpot 3.9.6 - Advanced file search...
HoudahSpot is a powerful file search tool built upon MacOS X Spotlight. Spotlight unleashed Create detailed queries to locate the exact file you need Narrow down searches. Zero in on files Save... Read more
RapidWeaver 6.0.3 - Create template-base...
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
iPhoto Library Manager 4.1.10 - Manage m...
iPhoto Library Manager lets you organize your photos into multiple iPhoto libraries. Separate your high school and college photos from your latest summer vacation pictures. Or keep some photo... Read more
iExplorer 3.5.1.9 - View and transfer al...
iExplorer is an iPhone browser for Mac lets you view the files on your iOS device. By using a drag and drop interface, you can quickly copy files and folders between your Mac and your iPhone or... Read more
MacUpdate Desktop 6.0.3 - Discover and i...
MacUpdate Desktop 6 brings seamless 1-click installs and version updates to your Mac. With a free MacUpdate account and MacUpdate Desktop 6, Mac users can now install almost any Mac app on macupdate.... Read more
SteerMouse 4.2.2 - Powerful third-party...
SteerMouse is an advanced driver for USB and Bluetooth mice. It also supports Apple Mighty Mouse very well. SteerMouse can assign various functions to buttons that Apple's software does not allow,... Read more
iMazing 1.1 - Complete iOS device manage...
iMazing (was DiskAid) is the ultimate iOS device manager with capabilities far beyond what iTunes offers. With iMazing and your iOS device (iPhone, iPad, or iPod), you can: Copy music to and from... Read more
PopChar X 7.0 - Floating window shows av...
PopChar X helps you get the most out of your font collection. With its crystal-clear interface, PopChar X provides a frustration-free way to access any font's special characters. Expanded... Read more
Carbon Copy Cloner 4.0.3 - Easy-to-use b...
Carbon Copy Cloner backups are better than ordinary backups. Suppose the unthinkable happens while you're under deadline to finish a project: your Mac is unresponsive and all you hear is an ominous,... Read more
ForeverSave 2.1.3 - Universal auto-save...
ForeverSave auto-saves all documents you're working on while simultaneously doing backup versioning in the background. Lost data can be quickly restored at any time. Losing data, caused by... Read more

Latest Forum Discussions

See All

Raby (Games)
Raby 1.0.3 Device: iOS Universal Category: Games Price: $2.99, Version: 1.0.3 (iTunes) Description: ***WARNING - Raby runs on: iPhone 5, iPhone 5C, iPhone 5S, iPhone 6, iPhone 6 Plus, iPad Mini Retina, iPad Mini 3, iPad 4, iPad Air,... | Read more »
Oddworld: Stranger's Wrath (Games)
Oddworld: Stranger's Wrath 1.0 Device: iOS Universal Category: Games Price: $5.99, Version: 1.0 (iTunes) Description: ** PLEASE NOTE: Oddworld Stranger's Wrath requires at least an iPhone 4S, iPad 2, iPad Mini or iPod Touch 5th gen... | Read more »
Bounce On Back (Games)
Bounce On Back 1.0 Device: iOS Universal Category: Games Price: $2.99, Version: 1.0 (iTunes) Description: | Read more »
Make Way for Fat Chicken, from the Maker...
Make Way for Fat Chicken, from the Makers of Scrap Squad Posted by Jessica Fisher on November 26th, 2014 [ permalink ] Relevant Games has announced they will be releasing their reverse tower defense game, | Read more »
Tripnary Review
Tripnary Review By Jennifer Allen on November 26th, 2014 Our Rating: :: TRAVEL BUCKET LISTiPhone App - Designed for the iPhone, compatible with the iPad Want to create a travel bucket list? Tripnary is a fun way to do exactly that... | Read more »
Ossian Studios’ RPG, The Shadow Sun, is...
Ossian Studios’ RPG, The Shadow Sun, is Now Available for $4.99 Posted by Jessica Fisher on November 26th, 2014 [ permalink ] Universal App - Designed for iPhone and iPad | Read more »
Mmmm, Tasty – Having the Angry Birds for...
The very first Angry Birds debuted on iOS back in 2009. When you sit back and tally up the number of Angry Birds games out there and the impact they’ve had on pop culture as a whole, you just need to ask yourself: “How would the birds taste... | Read more »
Rescue Quest Review
Rescue Quest Review By Jennifer Allen on November 26th, 2014 Our Rating: :: PATH BASED MATCH-3Universal App - Designed for iPhone and iPad Guide a wizard to safety by matching gems. Rescue Quest might not be an entirely original... | Read more »
You Can Play the Final Chapter of Lone W...
You Can Play the Final Chapter of Lone Wolf: Dawn Over V’taag Right Now Posted by Jessica Fisher on November 26th, 2014 [ permalink ] Universal App - Designed for iPhone and iPad | Read more »
Swords of Anima (Games)
Swords of Anima 1.0 Device: iOS Universal Category: Games Price: $2.99, Version: 1.0 (iTunes) Description: A new tactical turn-based RPG experience. Command the Savior Rex Squad in an epic journey of courage and deception. Can you... | Read more »

Price Scanner via MacPrices.net

2014 1.4GHz Mac mini on sale for $449, save $...
 B&H Photo has the new 1.4GHz Mac mini on sale for $449.99 including free shipping plus NY tax only. Their price is $50 off MSRP, and it’s the lowest price available for this new model. Adorama... Read more
Early Black Friday pricing on 27-inch 5K iMac...
 B&H Photo continues to offer Black Friday sale prices on the 27″ 3.5GHz 5K iMac, in stock today and on sale for $2299 including free shipping plus NY sales tax only. Their price is $200 off MSRP... Read more
Early Black Friday sale prices on iPad Air 2,...
 MacMall is discounting iPad Air 2s by up to $75 off MSRP as part of their Black Friday sale. Shipping is free: - 16GB iPad Air WiFi: $459 $40 off - 64GB iPad Air WiFi: $559 $40 off - 128GB iPad Air... Read more
Early Black Friday MacBook Air sale prices, $...
 MacMall has posted early Black Friday MacBook Air sale prices. Save $101 on all models for a limited time: - 11″ 1.4GHz/128GB MacBook Air: $798 - 11″ 1.4GHz/256GB MacBook Air: $998 - 13″ 1.4GHz/... Read more
Why iPhone 6 Tablet/Laptop Cannibalization Is...
247wallst.com blogger Douglas A. McIntyre noted last week that according to research posted on the Applovin blog site the iPhone 6 is outselling the iPhone 6 Plus by a wide margin . Hardly a surprise... Read more
Worldwide Tablet Growth Expected to Slow to 7...
The global tablet market is expected to record massive deceleration in 2014 with year-over-year growth slowing to 7.2%, down from 52.5% in 2013, according to a new forecast from International Data... Read more
Touchscreen Glove Company Announces New Produ...
Surrey, United Kingdom based TouchAbility specializes in design and manufacture of a wide variety of products compatible with touchscreen devices including smartphones, tablets and computers. Their... Read more
OtterBox Alpha Glass Screen Protectors for iP...
To complement the bigger, sharper displays on the latest Apple devices, OtterBox has introduced Alpha Glass screen protectors to the iPhone 6 and iPhone 6 Plus. The fortified glass screen protectors... Read more
Early Black Friday Mac Pro sale, 6-Core 3.5GH...
 B&H Photo has the 6-Core 3.5GHz Mac Pro on sale today for $3499 including free shipping plus NY sales tax. Their price is $500 off MSRP, and it’s the lowest price available for this model from... Read more
Early Black Friday sale price: 15-inch 2.2GHz...
 B&H Photo has the 2014 15″ 2.2GHz Retina MacBook Pro on sale today for $1699.99. Shipping is free, and B&H charges NY sales tax only. Their price is $300 off MSRP, equalling Best Buy’s price... Read more

Jobs Board

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