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Wednesday, August 20, 2014

Apple to Return Manufacture of Macs to America

Apple CEO Tim Cook announced the company would be moving some production of its Mac computers to U.S. facilities in a $100 million reshoring investment.

One of the biggest corporate and consumer brand names yet has embraced the reshoring trend being evangelized by Harry Moser of the Reshoring Initiative and others. (You can see our Machining Journal exclusive interview video with Moser here.) Apple has announced it will be moving some of its production from Asia to the United States, investing $100 million in the shift, The New York Times reports.

The move will mark the first time Apple has manufactured computers in the U.S. in about a decade, after it fully transitioned its production facilities to China and elsewhere. Machining Journal sister publication Industry Market Trends has a video about Apple’s earlier production facilities in California in today’s article.

CEO Tim Cook, who made his name at Apple as the architect of its overseas production and supply chain, made the announcement Thursday but provided little information beyond the company’s intention to create jobs in America. “I don’t think we have a responsibility to create a certain kind of job,” Cook told Bloomberg Businessweek. “But I think we do have a responsibility to create jobs.”

The Times notes that with iPads, iPhones and other handheld devices, Mac computers are becoming a smaller portion of its overall business. There are no plans to move production of the higher-volume products to the U.S.

Apple is the latest to join the growing ranks of companies that have found American production much more cost-effective and competitive in light of increasing supply chain costs and Made in America brand awareness, respectively.

“Companies were going abroad in pursuit of cost reduction, and it turns out there were a lot of unintended costs,” Diane Swonk, chief economist at Mesirow Financial, told the Times. “America has been looking a lot more competitive lately.”

 

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