Apple's Initial Investment in U.S. Mac Production Estimated to Create 200 Jobs

[MacRumors]

Bloomberg reports that Apple's $100 million plan to bring some Mac production back to the United States is likely to be a very modest operation at the outset, with some economists and industry experts projecting that the effort will create approximately 200 jobs.

The investment "sounds like a 200-job operation with about a million-unit output," said Dan Luria, a labor economist at Michigan Manufacturing Technology Center in Plymouth, Michigan, who studies factory operations. Apple will probably rely on tax breaks and other incentives for the facility, he said. [...]

While Apple's commitment could set a precedent for electronics suppliers, it probably doesn't presage a large or rapid shift of production back to the U.S., said Michael Marks, the former CEO of Flextronics International Ltd., which was the largest contract manufacturer in the world before the rise of Foxconn. He also estimates $100 million may create about 200 jobs.

Apple is presumed to be working with its primary manufacturing partner Foxconn on the project, as Foxconn has also expressed interest in building operations in the United States.

Workers at Quanta Computer in Shanghai assembling MacBook Pro display enclosures

Apple's efforts to bring Mac production back to the United States come just as Lenovo, which purchased IBM's personal computer business in 2005, has announced plans to begin PC production in North Carolina. Lenovo's effort is also a modest one, projected to employ roughly 100 workers to produce several hundred thousand units per year.

Article Link: Apple's Initial Investment in U.S. Mac Production Estimated to Create 200 Jobs

[AppleScruff1]

It's not much, but at least it's a start. Hopefully as time goes on we will see more progress on this.

[unlimitedx]

hmm a very modest number..

[SomeDudeAsking]

Golly, 200. Whoop-e-do. /s

Foxconn is like a million.

[appleguy123]

Look at it for what it is. A cost effective PR campaign. During the election season, Apple got a lot of bad press for manufacturing in China. This is a good argument against that because now Apple will be able to say that they created manufacturing jobs in the US and it will get them good media coverage.

[yearofthe]

Better than no jobs.

[mrsir2009]

Originally Posted by appleguy123

Look at it for what it is. A cost effective PR campaign. During the election season, Apple got a lot of bad press for manufacturing in China. This is a good argument against that because now Apple will be able to say that they created manufacturing jobs in the US and it will get them good media coverage.

Very good PR indeed - They can now say "Some of our products are made right here in the USA!"

[japanime]

Great PR move by Apple. By adding a mere 200 jobs, they've dominated another 24-hour U.S. news cycle.

I still hope this means they will be reactivating their factory in Elk Grove, California, where the last of the US-made iMacs were assembled before the work was shipped overseas.

[strausd]

This is definitely just going to be the Mac Pro.

[Nunyabinez]

This is what I read "Somebody looking to get their name in the paper pulled the number 200 out of their ass since virtually no details about which mac product have even been released."

[wikus]

This 200 number is almost as impressive as Apple's very generous 10% off deals during black Friday.

[appleguy123]

Originally Posted by yearofthe

Better than no jobs.

I was more happy when there was just 1 Jobs.

[Stetrain]

Makes sense.

In China right now the numbers seem to favor using large numbers of people to do the bulk of the assembly work, however production in the US would favor a highly automated system.

[Mak47]

Originally Posted by Nunyabinez

This is what I read "Somebody looking to get their name in the paper pulled the number 200 out of their ass since virtually no details about which mac product have even been released."

Agreed.

Apple isn't even going to run the facility, it's going to be Foxconn. Foxconn isn't going to invest in a state of the art manufacturing facility just to do low volume Macs. Once the facility is opened, we'll know what kind of capacity it has. Foxconn may take on additional work or expand the facility as needed.

It also sounded like Apple intended to source more US parts and begin building a supply chain here in the US.

Beyond all that, American companies will build the facility, feed its employees and provide maintenance and security. While 200 people may work on Apple's assembly lines, this will create more than 200 jobs.

If the move is successful and a real supply chain can be developed, we'll also certainly see additional products (probably more Macs) manufactured here.

It has to start somewhere. There are a lot of risks to a US based manufacturing operation in 2013. Apple isn't going to throw all their eggs in that basket until they know they'll have a reliable supply chain and won't lose production as a result of over regulation, labor disputes or lawsuits.

[appleguy123]

Originally Posted by Stetrain

Makes sense.

In China right now the numbers seem to favor using large numbers of people to do the bulk of the assembly work, however production in the US would favor a highly automated system.

It's a really sad commentary that you can hire people for cheaper than robots.

[vailr]

Foxconn employees already work in HP's Plainfield, Indiana PC assembly plant. About 30% of the workers there are Foxconn employees, with Foxconn I.D. badges. The Plainfield location is where HP's business and workstation PC's are assembled. Using all foreign-made parts, except maybe for the Intel or AMD CPU's & the Windows operating system. HP gains some import tax advantages by doing the final assembly on U.S. soil. HP also has a similar plant in Ontario, California, that produces "consumer-grade" PC's.

[knewsom]

Robots make the same wage, whatever nation they're in...

[TennisandMusic]

I think it's an excellent start. You may say 200 jobs, big deal, but that's going to matter a heck of a lot to 200 people. They might even be decently paying jobs that really help support a family.

If Apple is actually doing this to help our country, I say good for them. It's really a great thing for them to do, and I have been pretty critical of Apple as of late. I like the move. 200 today could be 2,000 the year after, and 20,000 the year after that. Don't knock any kind of domestic job creation.

[mrsir2009]

Originally Posted by appleguy123

It's a really sad commentary that you can hire people for cheaper than robots.

Robots would probably be cheaper in the long run, however of course the massive upfront initial investment in all those robots would be more than hiring Chinese workers.

[weing]

And tea and (one) biscuit for all 200!

[Laird Knox]

It never ceases to amaze me how many jackasses there on these forums.

[HavocLink]

I'm glad to see Apple making this move. 200 may sound insignificant to many people, but it matters to the 200 Americans getting those jobs. Also, it will be very good for Apple's public image. I hope this is the first small step of many on Apple's part!

[macs4nw]

Originally Posted by Mak47

.....There are a lot of risks to a US based manufacturing operation in 2013. Apple isn't going to throw all their eggs in that basket until they know they'll have a reliable supply chain and won't lose production as a result of over regulation, labor disputes or lawsuits.

Those caveats will indeed be the biggest stumbling block to reliable, consistent output.

Originally Posted by appleguy123

It's a really sad commentary that you can hire people for cheaper than robots.

The sad truth is that, although initially very expensive, robots don't take breaks, and are super-accurate.

Originally Posted by TennisandMusic

I think it's an excellent start. You may say 200 jobs, big deal, but that's going to matter a heck of a lot to 200 people. They might even be decently paying jobs that really help support a family. If Apple is actually doing this to help our country, I say good for them. It's really a great thing for them to do, and I have been pretty critical of Apple as of late. I like the move. 200 today could be 2,000 the year after, and 20,000 the year after that. Don't knock any kind of domestic job creation.

Agreed 100%! Even 200 jobs is better than no jobs.

[HMI]

Originally Posted by TennisandMusic

They might even be decently paying jobs that really help support a family.

Or they may be cheap Chinese labor shipped here to work legally for much less money.

Unless those jobs go to American citizens, I'm merely intrigued, and not yet impressed. This needs to be more than a clever PR move.

[Swift]

Remember when American cars were all we bought? I do. Anyway, we didn't go all overseas in two years, and it will take a long longer than two years to move any substantial number of jobs back here. The tax breaks they need are the idea that Obama has supported, that Apple be able to bring back $100 million to the US, and not pay taxes on it. It could be a big PR stunt, or maybe it's just the beginning of pulling back some manufacture from low-wage countries, for economic, political and national security reasons.

Cars did much the same. At first, the Japanese cars sold extremely well. They should have, because our industry had gotten fat and lazy. They had to be pushed to make their cars with decent gas mileage and good fit & finish and consumer value. Those days are past, thank God. So now, we've got non-union Toyota plants and union Detroit plants. Sales of US cars are doing well. And there are enough jobs that we have retained a car industry, though some of the plants belong to foreign brands. I think that's what will happen in the future: some computer manufacturing will return to the U.S. Some foreign countries will manufacture here, where they can save on transportation, etc. Our rates aren't that high; we gave away our electronics industry. I remember when most TVs were made in the U.S., too.