We could ask but I'm pretty sure we would never get an honest answer from Foxconn. Here is the thing though, Trump ran for president for 2 years more or less. As he gained voters it was pretty obvious to anybody watching that attitudes in the USA where changing. Specifically American workers where realizing that they got screwed over as a manner of political policy more than anything else. What can be gained from these observations is that policy in America would be changing and this was obvious even before Trump was elected.
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Apple Supplier Foxconn Confirms Plans to Build TV Display Factory in Wisconsin
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We could ask but I'm pretty sure we would never get an honest answer from Foxconn. Here is the thing though, Trump ran for president for 2 years more or less. As he gained voters it was pretty obvious to anybody watching that attitudes in the USA where changing. Specifically American workers where realizing that they got screwed over as a manner of political policy more than anything else. What can be gained from these observations is that policy in America would be changing and this was obvious even before Trump was elected.
It may start out at 3,000 in full capacity, but scale down as more and more becomes automated.
Let’s look at manufacturing in the USA. Tap on it to make it larger.
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It's The Republic of China, or should we say the Capitalist State of China off-mainland.
Thank you to the Illinois legislature for always making the states that border you look much more appealing to businesses.
Don't read too much into his comment; he's just trying to make himself feel better about a success for DT.
Ok? And Apple makes a lot of investments that never get realized in Apple products. There are a million and one reasons why they would ask Foxconn to start building factories in the US.
I dunno, I think it's one big marketing exercise with a future tax break sweetener. I don't think it makes business sense in any other way but you cant tell Trump supporters that one!
What Tim Cook is talking about in regards to lack of skills is not just basic assembly but more technical fabrication jobs. China not only has these guys, but has them in droves. It's not like they don't exist in the USA rather they don't exist in the volume needed to do that scale that Apple would like. It's not just about wages, it's about ability and scale.
https://9to5mac.com/2016/12/29/apple-iphone-city-china-manufacturing-foxconn/
This has happened because countries tend to specialise in certain types of businesses. For example, no one cries when you say it's easier to get a certain type of investment banker from NY or London than its would be in China. That is because the NY and London specialise in that type of business and cultivate workers accordingly. Large scale manufacturing has disappeared from the USA so the expertise has also gone. It will take time to ramp up, and who will do that?
One of the reasons Apple doesn't do it is because, frankly Apple haven't been into direct manufacturing for a very long time (if ever?). The economic reasons are simple. If Foxconn own the factory they can maximise it's output producing goods for other companies in the times that Apple products are not needed so much. If Apple owns the plant it has to have 100% utilisation to make sense. Apple isn't going to start making stuff for other companies so it's kind of a waste of time and costly to directly own these factories. It's pretty much JIT (Just In Time) manufacturing for Apple, using things as they need them. One of the reasons the Japanese companies have had a hard time competing with S.Korea, China and other Asian countries is that Japanese companies like Sony have traditionally owned lots of factories and its killing them. Over capacity and underutilisation is killing them. Apple have avoided that mess.
The last point I want to make and the most important is that the cost of living in China and the USA are way different for most people. Increased credit in the US economy has meant that US property prices are expensive relative to countries like China. Therefore salaries need to be more to pay workers. So when people say "oh its because you can get away with paying cheap wages in China". Well of course! They aren't paying 500k for a basic home in a Chinese village like US citizens have to!
So America is a victim of its own success (or Credit and Interest Rate policies!). It HAS to pursue higher value service industries and high tech equipment making because it's created a society that is too expensive to have basic factory work. Unless the factories are specialised (say Shinola watches or bikes etc..) it's never going to be as cost effective as manufacturing in China or Vietnam etc.. It's all ******** really. But the politicians won't (or cant even explain the economics) behind why things are the way they are. And who can blame them? They need the US citizens vote and will tell them any old ******** to get it.
What Tim Cook is talking about in regards to lack of skills is not just basic assembly but more technical fabrication jobs. China not only has these guys, but has them in droves. It's not like they don't exist in the USA rather they don't exist in the volume needed to do that scale that Apple would like. It's not just about wages, it's about ability and scale.
https://9to5mac.com/2016/12/29/apple-iphone-city-china-manufacturing-foxconn/
When Apple’s sales took off after the introduction of the iPod in 2001, Foxconn had the heft and expertise to meet the demand that accompanied each hit product. Foxconn’s factories could quickly produce prototypes, increase production and, during peak periods, hire hundreds of thousands of workers.
This has happened because countries tend to specialise in certain types of businesses. For example, no one cries when you say it's easier to get a certain type of investment banker from NY or London than its would be in China. That is because the NY and London specialise in that type of business and cultivate workers accordingly. Large scale manufacturing has disappeared from the USA so the expertise has also gone. It will take time to ramp up, and who will do that?
One of the reasons Apple doesn't do it is because, frankly Apple haven't been into direct manufacturing for a very long time (if ever?). The economic reasons are simple. If Foxconn own the factory they can maximise it's output producing goods for other companies in the times that Apple products are not needed so much. If Apple owns the plant it has to have 100% utilisation to make sense. Apple isn't going to start making stuff for other companies so it's kind of a waste of time and costly to directly own these factories. It's pretty much JIT (Just In Time) manufacturing for Apple, using things as they need them. One of the reasons the Japanese companies have had a hard time competing with S.Korea, China and other Asian countries is that Japanese companies like Sony have traditionally owned lots of factories and its killing them. Over capacity and underutilisation is killing them. Apple have avoided that mess.
The last point I want to make and the most important is that the cost of living in China and the USA are way different for most people. Increased credit in the US economy has meant that US property prices are expensive relative to countries like China. Therefore salaries need to be more to pay workers. So when people say "oh its because you can get away with paying cheap wages in China". Well of course! They aren't paying 500k for a basic home in a Chinese village like US citizens have to!
So America is a victim of its own success (or Credit and Interest Rate policies!). It HAS to pursue higher value service industries and high tech equipment making because it's created a society that is too expensive to have basic factory work. Unless the factories are specialised (say Shinola watches or bikes etc..) it's never going to be as cost effective as manufacturing in China or Vietnam etc.. It's all ******** really. But the politicians won't (or cant even explain the economics) behind why things are the way they are. And who can blame them? They need the US citizens vote and will tell them any old ******** to get it.
Actually Trump is far removed from the republican base, if he was in sync do you think we would have all of this conflict in congress right now?
Look at it this way, Obama instituted a number of policies that put people out of work. He was perhaps the most anti jobs president we have ever had in office and he was a Democrat. Trump is at least smart enough to realize that you need manufacturing to have a balanced economy. It isn't a question of being a millionaire but rather being able to objectively realize what has happened in this country with the exportation of jobs and the rise of the welfare state.
Does that mean that Trump grasp all the issues of those struggling to get by. Nope, not a chance in hell. What it does mean though is that he realizes to better the situation there has to be jobs and opportunity for these people. That is something that has been ignored by the federal government for decades now across several administrations.
So frankly I'm glad that Trump is somewhat at odds with his own political party, we need a change in Washington that reflects a government that cares about the welfare of all not just the 1% at the top.
Actually those tasks will probably be heavily automated. There will be other jobs at the factory requiring different skill levels.
Blue collar work is honorable respectable work and I'm getting a little disheartened at so many people conflating manual labor or factory work with stupidity or a disinterest in education. Truly stupid people or people completely unwilling or unable to learn wouldn't last in a modern factory, either. Isn't that what Tim Cook has been saying, that it's difficult to come up with enough workers for the factories because we have let the training and skills required in manufacturing atrophy? That implies some application of the mind and ability to absorb and retain information and develop skills is required to run and maintain a successful factory.
And this is America where workers have rights and much better wages than the Chinese workers are entitled to. I would expect Foxconn to abide by our regulations. So I'm not expecting suicide nets will be required here. Suicide is high here because our people lack work.
One more thing before I end this...
Buford would like to ask "What have you got against Wisconsin?" Do you not appreciate beer and cheese?
I've got some extended family born and raised there, and they include doctors and teachers, so there is no lack of appreciation for education in the state.
Just pointing out facts while people are debating Trump
Yes, everyone recognises Apple as an American brand, i'm not denying that, but peer behind the curtain of the Apple Inc company and you'll see a large number of non-US companies. For instance, Apple Sales International and Apple Distribution International are both Irish companies (and quite important by all accounts) so you could say Apple are an Ireland-based company based on the logic that 60% of Apple Inc revenue passes through or is sat in those companies.
Multinational companies can be stateless, there's nothing to say a company has to be "regionally identifiable".
TL;DR - Apple can at any point decide where it wants to be based since it's a global multinational, however it will always have a historical connection to America since that's where it was founded.
Wages aren't everything in a modern manufacturing plant. Even ocean transport is amazingly cheap these days, it actually costs less to ship something across the ocean than it costs to ship it to your house from a warehouse in the USA.
There are lots of reasons to spread out ones capabilities. Everything from natural disasters to man made ones can impact your production and viability as a manufacture. More importantly Foxconn is Taiwan based and lets face it the political situation with respect to China in Taiwan is always in flux so there is no telling how long the plants in China will remain viable.
Yet people do just that in the USA day after day after day. As much as manufacturing in the USA has been decimated there are still many production lines running in the good ole USA with people doing the same mundane task day after day.
Why would they do this? There are lots of reasons. For example a recent emigrant to the USA may be working hard to send his kids to college so that they can pursue the American dream. A mother may be working to support an handicapped kid, effectively subsidizing a husbands wages. Boredom with sitting around the house while everyone else is out working has been a motivator. Someone could be hungry and in need of a house overhead and simply doesn't have the capability of pursuing a high paying job. They might like the impact that the job creates in the community.
In any event there are many reasons and frankly it is pretty sad to consider how people here I this forum denigrate those that choose to work in factories. Apparently we have a contingent here that thinks they are better than everybody else.
Certainly! The just means that the spectrum of jobs available will be wider. Jobs our engineers, programmers and the like. Any modern manufacturing plant is a huge win for the community it resides in. The idea they only bring low paying jobs is complete ********.
The best US President of all time. We love you Trump. #MAGA #Trump2020
You do realize that the Obama administration changed the way the unemployed are accounted for to get those better numbers. Right now the number of unemployed workers in America is at an all time high. people talk about fake news but don't even realize when the wool has been pulled over their eyes.
They purchased Sharps business. It is a new thing for them so there may be a ramp up period.
[doublepost=1501113268][/doublepost]LOL.
They purchased Sharps business. It is a new thing for them so there may be a ramp up period.
Please source your information this decision was made years ago.
Foxconn told the WSJ they've wanted to open a plant in the US for years and in 2014 investigated investing $40M in Pennsylvania but US local governments wouldn't offer terms that were favorable enough.
Btw, the average salary for these $13k jobs is $53k plus benefits according to Wisconsin Governor Walker....so much for your $7.25 hour mantra.
Can you be more pessimistic?
Amen! to infinity and beyond!
By the time this factory will exist (if ever) Trump is most likely no longer president.
I also don't see starting with 3,000 and getting to 13,000 qualified and educated workers for the particular hi-level jobs.
There will always be minimum wage jobs, but these are usually in the hands of latinos.
So, good luck with all of it.
I am not against it , but money talks and ...............
I want this to be true but Foxconn has a history of lying about this kind of stuff: http://host.madison.com/ct/opinion/column/luz-sosa-take-off-the-rose-colored-glasses-about-foxconn/article_de479a7d-afd0-57cd-8af8-05990a50a5b6.html
Good luck winning WI back Democrats.
You're going to need it.
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You're going to need it.
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Tell that to the people out of work or engineers out of college looking for a job.
I just had to read though the comments to see how many far leftists would think creating 3,000 new jobs is a terrible thing. I suppose you if you want to keep people unemployed and living off of Government welfare it's a bad thing. These jobs are likely to pay better then unskilled service based jobs and provide more benefits. I'd say this is a positive development.
The problem with (most of) today's Democratic party is that it is totally identity politics based which is meaningless to a huge majority of the population. Dems need to start focusing on things like this.
The problem with (most of) today's Democratic party is that it is totally identity politics based which is meaningless to a huge majority of the population. Dems need to start focusing on things like this.
Let’s not get hung up on Trump. He has absolutely nothing to do with this. These plans weren’t thought up in the last six months. If anything, his instability could blow this deal.
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Has nothing to do with magats.