This past week, Apple announced that it will move some of its production back to the United States. Apple is hoping that their move will encourage other companies to follow suit, the manufacturing industry said, even if their move is mostly a symbolic step. "Anything that Apple does, from design to manufacturing, is hugely influential," said Chris Anderson, a former editor of Wired magazine and now CEO of San Diego-based 3D Robotics. "Other companies could look at this and say, "If Apple can do it, so can I.' "
Apple CEO Tim Cook said in recent interviews confirmed by a variety of sources that his company, which currently does most of its production in China, would invest approximately $100 million to bring some of its Mac manufacturing back to the U.S. starting next year. What I realized though is that Apple's move isn't surprising. According to recent studies, Apple's move follows a continuing pattern of American companies bringing manufacturing back to the country due to rising labor, supply and production costs in China. "China isn't cheap anymore. And you also worry about the political risks and the environmental cost of doing business there," said Anderson, whose firm creates consumer drone technology. Anderson actually moved his company's production out of China two years ago, setting up manufacturing facilities in San Diego and Tijuana. In the same interview, Anderson said that making his products closer to his customers has actually turned out to be cheaper. Instead of manufacturing in bulk as he did in China, he ramps up production as orders come in. He also saves on shipping and other distribution costs.
Mitch Free, founder and CEO of an Atlanta-based website MFG.com, which is an online directory that helps companies find American manufacturers, agreed that making goods in the U.S. offers some distinct advantages. "Your production time is shorter and you carry less inventory," said Free. "By being closer to headquarters, you can speed up design and innovation and protect your intellectual property," he said. In addition, Free considers that it can also breed goodwill and positive PR. "Supporting Made in America makes you a good corporate citizen," Free said. "Apple is such an innovator and you hope that other companies will follow its lead."
However, Apple's move may not generate many more new factory jobs, though, since technology manufacturing today is so automated. "It's not like you need workers sitting on workbenches to assemble computers," Free said. In addition, according to Free, since so much of the country's manufacturing base has eroded over the years, finding American workers with the skills to immediately start on the factory floor can be a challenge. According to research conducted, the easiest way for Apple to jumpstart production in the United States would be to make a contract with its existing Chinese manufacturer Foxconn Technology Group and build another facility to assemble Macs. This approach would be similar to what Japanese automakers have done in the past when they've come to the U.S., bringing in Japanese management and high-skilled Japanese workers to train American workers.
Personally, I think this move by Apple is a fantastic one. Sure, it may not make a major difference overall, but the symbolic meaning behind it speaks volumes. In order to help our country get back on track, more companies need to follow in Apple's footsteps and bring jobs back to the country. If more companies take this action, we would be able to provide a few more jobs here and there to the millions of unemployed people throughout our country. Every little thing helps, and by doing this, companies can be making a huge difference.
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