By Jeffrey A. Newman
Apple is facing a potential 25% tariff on its iphones unless it advances construction of its factory in the United States. Some analysts responded that the idea of Apple producing iphones in the US is not feasible as factories take years to build a factory. In addition, the existing factories in China have precision cutting machines and tools and the people to service them. Apple’s CEO Tim Cook has said that there are too few tooling engineers in America to do this work.
Apple’s I-phones are assembled by Foxconn a Chinese company. That company is building a new facility to do the assembly in India which is partially operational. It will employ 50,000 people. The site will have dormitories for 30,000 staff and offers employees food and accomodation for $200 a month. I posed a question to the AI program Perplexity as to what could be done to speed up the implementation of a factory within the U.S. and to meet the needs of tool engineers and other personnel to assemble the phones. Here are a few of the ideas for streamlining the process:
- Streamline and Standardize Processes: Applying lean manufacturing principles, standard operating procedures (SOPs), and workflow optimization can reduce inefficiencies and speed up both construction and production ramp-up.
- Increase Automation: Investing in advanced robotics and automation can offset labor shortages and accelerate assembly line setup, especially for repetitive or precision tasks.
- Modular Construction: Using pre-fabricated building modules and off-site assembly can significantly reduce construction time compared to traditional methods.
- Parallel Supply Chain Development: Simultaneously building out local supplier networks and training programs while the factory is under construction can shorten the overall timeline.
- Government and Local Incentives: Fast-tracking permits, providing tax incentives, and supporting workforce training initiatives can help remove bureaucratic and logistical hurdles.
- Collaboration with Existing Manufacturers: Partnering with established U.S. manufacturers who already have relevant expertise and infrastructure (such as those in automotive or aerospace sectors) could provide a head start in both facility construction and workforce development.
I also imagine that if there are trained assembly personnel in India as well as tooling engineers that the Administration might consider H1B Visas and special incentives to speed up the process. Also, there could be state and federal incentives for the construction of such facilities, not just for Apple but for other companies given the importance to our long term national interests. The skilled labor force issue is a tough one and the wage costs are also a factor. However, that must be balanced against the potential long term tariff costs. In the end, if solutions can be found it might create roadmaps for many companies and products now made in China or India.
Jeffrey Newman is a whistleblower lawyer representing doctors who become whistleblowers reporting SEC violations, Medicare and Medicaid fraud. He also represents whistleblowers in IRS tax evasion cases, SEC violations and tariff fraud cases. Jeff frequently writes on events affecting world social developments including AI. He can be reached at Jeff@JeffNewmanLaw.com or at 978-880-4758
