Although the demand for Apple products has declined slightly, company executives have decided to move some of their manufacturing activities to the United States. Manufacturing experts hope this move will prompt other corporate leaders to commit to manufacturing or assembling products on US soil. An increase in domestic manufacturing could have a positive impact on the economy, but it is likely executives are more interested in the political and economic advantages of reshoring their manufacturing activities.
In 2012, Tim Cook announced Apple would invest $100 million in manufacturing some Macintosh computers in the US. These computers are among the most popular Apple products, so there is a strong demand for them in the global technology market. When Cook made this announcement, some experts were skeptical. Andre Sharon, a Boston University professor, said there was no compelling reason for the necessary supply chains to move from Asia back to the United States. Some critics also doubted this move would have a real impact on domestic manufacturing.
Less than a year after the initial announcement, Apple is planning to move into a manufacturing facility in Mesa, Arizona. This move will create approximately 2,000 US manufacturing and construction jobs. Company executives have yet to reveal which Apple products will be produced at the Mesa facility, but one of the tech company's suppliers revealed it will be producing the material used to protect the iPhone 5 fingerprint reader and the cameras on its other phone models. The source says GT Advanced Technologies will be doing this production work in Arizona.
Although many people are excited about the possibility of buying Apple products made in Mesa, the move is not a done deal. The local school board must approve a tax break for the computer manufacturer, but some members of the board are hesitant to do so. The school district's tax revenues would increase significantly, even at a lower rate; but two board members are opposed to reducing Apple's tax burden. If the board does not approve the tax break, Apple may not move into the vacant manufacturing facility. Apple promised to invest more than $1 billion in renovating the manufacturing facility, so refusal to approve the tax break could have a devastating impact on Mesa's economy. The two board members who oppose the tax break say it is unfair to offer a break to such a big company when local entrepreneurs do not have the same opportunity.
The increased demand for goods made in the United States has Apple considering a big move in the manufacturing world. If the deal goes through, more Apple products will be manufactured in America, creating jobs and stimulating the economy. If the school board does not approve the tax break, Apple may have to find another location for its US manufacturing facility. This could hurt Mesa's economy and reduce the availability of Apple products made in the United States.
(Photo courtesy of freedigitalphotos.net)
Become a member to take advantage of more features, like commenting and voting.
Register or sign in today!