Apple will spend $100 million to bring production jobs back to the United States, and, according to a new report by Bloomberg, that effort will help create 200 new jobs in the tech manufacturing sector.
The Bloomberg report reads:
“The investment ‘sounds like a 200-job operation with about a million-unit output,’ said Dan Luria, a labor economist at Michigan Manufacturing Technology Center in Plymouth, Michigan, who studies factory operations. Apple will probably rely on tax breaks and other incentives for the facility, he said. […]
“While Apple’s commitment could set a precedent for electronics suppliers, it probably doesn’t presage a large or rapid shift of production back to the U.S., said Michael Marks, the former CEO of Flextronics International Ltd., which was the largest contract manufacturer in the world before the rise of Foxconn. He also estimates $100 million may create about 200 jobs.”
Apple is believed to be working with Asian manufacturer Foxconn to build out its US operations. Foxconn recently announced interest in bringing its production know-how to the United States.
It will be interesting to see how well Foxconn can run a profitable business in the United States. The company is constantly under fire for paying near slave wages to employees throughout China. Foxconn employees have also argued that the company forces them to work long hours in horrendous working conditions.
Apple isn’t the only company bringing computer assembly back to the United States. Competitor Lenovo recently announced plans to produce computers in North Carolina. Lenovo will hire approximately 100 workers while producing several hundred thousand units annually.