Even the "supply chain" issue is about labor cost, because the reason screens and circuit boards are (now) made in China is because of labor costs.
Most of the "engineers" mentioned actually graduate from 2-year technical schools. But the education issue is a real problem in the US, and a LOT of it is caused by the institutions themselves. Want to get an engineering degree in the US? Fine, except that 50% of the courses you take won't be on engineering or math topics. The US university system is based on an outdated model that caters to academic prejudices and the needs of wealthy families, not the working class. We should have five times more students in vocational or technical schools than we do today, and their diplomas should be as relevant and meaningful to hiring managers as any liberal arts degree from Yale.
Finally, if you truly look at the factory system in China, you will find an unsuspected parallel in America. Regimented life, barracks, forced calisthenics, 24-hour on call, obedience to rank, do these sound familiar? Sure they do, if you've ever been in the Army.
And never forget, the investment money that builds factories in anticipation of getting business, that all comes from the Chinese government. US companies are essentially selling out to the People's Republic when they accept that "largesse." And it's a Faustian bargain as companies like Whirlpool and GE have found out. Once the Chinese learned to design as well as manufacture, they have begun attacking and overcoming their erstwhile employers. Just like the Japanese did to Zenith, RCA, and Magnavox 40 years ago. History repeats itself.
If you have an iPhone you have likely noted the small text on the back that states, “Designed by Apple in California. Assembled in China.” In the past Apple made all their products in the USA, but that is no longer possible today due to several factors detailed in an excellent New York Times article published on Saturday.
The New York Times article is based on interviews with more than three dozen current and former Apple employees and contractors, economists, manufacturing experts, international trade specialists, technology analysts, academic researchers, employees at Apple’s suppliers, competitors and corporate partners, and government officials.
In typical government fashion, statements are made without understanding the real problem when they see companies actually making a healthy profit. Betsey Stevenson, the chief economist at the Labor Department until last September stated, “Companies once felt an obligation to support American workers, even when it wasn’t the best financial choice. That’s disappeared. Profits and efficiency have trumped generosity.” Seriously? Does the Labor Department really think making statements like this will help encourage companies to try to find ways to bring jobs back to the U.S.? Maybe the U.S. government should take a leadership role in encouraging more people to embrace engineering as a major or to increase the skills for manufacturing workers.
Your first thought may be that Apple can’t manufacture iPhones in the U.S. due to the labor costs, but as the article points out the major costs are associated with parts and supply chains. It was also interesting to read that China can provide engineers at a scale that the US simply cannot support in a timely fashion. About 8,700 engineers were needed for the iPhone and it took just 15 days to get those engineers in China while it would take as long as nine months for that to happen in the U.S.
