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A Tiny Screw Shows Why iPhones Won't Be 'Assembled in USA' (nytimes.com)
An anonymous reader shares a report: Despite a trade war between the United States and China and past admonishments from President Trump "to start building their damn computers and things in this country," Apple is unlikely to bring its manufacturing closer to home. A tiny screw illustrates why. [Editor's note: the link may be paywalled; alternative source.]
In 2012, Apple's chief executive, Timothy D. Cook, went on prime-time television to announce that Apple would make a Mac computer in the United States. It would be the first Apple product in years to be manufactured by American workers, and the top-of-the-line Mac Pro would come with an unusual inscription: "Assembled in USA." But when Apple began making the $3,000 computer in Austin, Tex., it struggled to find enough screws, according to three people who worked on the project and spoke on the condition of anonymity because of confidentiality agreements.
In China, Apple relied on factories that can produce vast quantities of custom screws on short notice. In Texas, where they say everything is bigger, it turned out the screw suppliers were not. Tests of new versions of the computer were hamstrung because a 20-employee machine shop that Apple's manufacturing contractor was relying on could produce at most 1,000 screws a day. The screw shortage was one of several problems that postponed sales of the computer for months, the people who worked on the project said. By the time the computer was ready for mass production, Apple had ordered screws from China.
In 2012, Apple's chief executive, Timothy D. Cook, went on prime-time television to announce that Apple would make a Mac computer in the United States. It would be the first Apple product in years to be manufactured by American workers, and the top-of-the-line Mac Pro would come with an unusual inscription: "Assembled in USA." But when Apple began making the $3,000 computer in Austin, Tex., it struggled to find enough screws, according to three people who worked on the project and spoke on the condition of anonymity because of confidentiality agreements.
In China, Apple relied on factories that can produce vast quantities of custom screws on short notice. In Texas, where they say everything is bigger, it turned out the screw suppliers were not. Tests of new versions of the computer were hamstrung because a 20-employee machine shop that Apple's manufacturing contractor was relying on could produce at most 1,000 screws a day. The screw shortage was one of several problems that postponed sales of the computer for months, the people who worked on the project said. By the time the computer was ready for mass production, Apple had ordered screws from China.
no one in the usa will work for $2.15/hr 60-80 hours a week + must live on site.
The article never showed the actual screw, I was hoping I'd see a screw...
If only it was possible to engineer a product using readily available parts instead of custom items specifically designed to stifle repairs and create vendor lock-in. ...if only it was possible...
~Any apparent grammatical or typographic errors are caused by defects in your display device.
The Mac Pro was not a laptop.
"Old man yells at systemd"
Apples can be made here just fine. If they give up on their image mandates and want to just infiltrate the market they're perfectly capable. People who recognize my user name recognize me as being highly critical of Apple. What few know is that my first electronics industry job back in 1996 was related to Apple. I manufactured Mac Clones. Legal, lawful ones under contract from Motorola. They weren't far different from normal PCs of the era, they were little beige boxes with standard PC components, they had an electronically ejected floppy drive instead of the standard mechanical push button of the era, and everything was SCSI instead of IDE, but I must say there was an appeal to using off the shelf components. I lost my job when Steve Jobs got his job back, killing clones was one of the first things he did.
If Apple was having trouble getting a particular screw in the computer world then it wasn't a normal screw.
Indeed their reliance on tri-wings and other "don't you dare fix this yourself!" products instead of normal, mass produced, easy to get screws is half their problem.
What this article leaves out is the United States used to be like China is now when it comes to manufacturing. Our politicians sold us out. We've been financially punished through specific taxes and targeted labor practices from that are designed to keep us from succeeding in the manufacturing world. Most of this was done in the George H.W. Bush era, but it wasn't exclusive to him. Every president between Reagan and Trump, and I'm not so sure about Reagan in his second term, has sold the United States to foreign interest. The reason we aren't setup to do what Apple is bitching we can't do was government sabotage of our own industry.
#1 Use normal fucking screws
#2 Stop allowing our politicians to sell us out - flush the toilet occasionally and replace the contents up on the hill
#3 Educate yourself about what's going on
The preceding post was not a Slashvertisement.
Maybe if the US doesn't have enough capacity, Apple could take some of the billions of dollars in cash, and ... invest it in US factories? I'm pretty sure if they invested that money in the US, then they'd be employing more US workers, who could... afford to buy an Apple device. I know it's cliche to suggest that investing in your home country actually benefits the country and your own company, but it's true.
http://github.com/gbook/nidb
I would posit only that this shows that Apple are terrible at sourcing products, especially bespoke non-standard products of their own design.
This tells you several things about: a) the practicality of their designs, b) their deliberate awkwardness to manufacture, c) their patent portfolio, d) their ability to "think outside the box".
So you couldn't buy a custom-made screw. And you didn't know that in time for production. And that stymied however-many-million-dollars of product from going into production.
And we're not talking some aircraft-grade, ultra-thin, super-duper-magical screw. But a screw to hold, say, a motherboard to a case, or a case together (but their Mac cases didn't have screws, did they?). You couldn't have just bought a bunch of M3/M4/M5 screws and drilled appropriate holes?
This says everything you need to know about Apple, not what Texas can or can't produce. They'd rather create weird shit that serves no purpose that can't be fulfilled with a 1/10th of a cent screw that you can pick up anywhere, and pass that cost down to you, blaming American manufacturing when they own inability to design, source, plan and manufacture a simple fixing shows them up.
Manufacturing requires an ecosystem of other manufacturers for mutual support. A single widget machine is not technology; the manufacturing capacity and knowledge along with perpetuation of same _is_ technology.
Back in the day when off shoring started, the argument was the grunt labor is going overseas, but all the knowledge work is staying here. Obviously stupid on the face, but people fell for it. Manufacturing problems are solved on the plant floor as they occur. Nobody waits for the 'knowledge' to show up from 12 time zones away.
Heck, even the anecdote in the summary made the natural assumption that the place to get the screw was China, not Pennsylvania, or some other not Texas based US source--because that is where the mature ecosystem now thrives.
Congratulations, America, you got what you paid for.
Apple, you have the chance to among the first 'on-shorers' to stick with it to reap long term benefits, like your predecessors did 200 some odd quarters ago when they went the other way.
A 20 man shop producing 1,000 screws a day?
Figure an average hourly wage of $20/hr that's $400 in labor per hour over an 8 hour shift that's $3200 cost in labor per day. At least. I'm skipping land leases, building lease/rent, material cost, etc.
If you're kicking out 1000 screws and it takes you $3200 in labor that's $3.20 cents per screw.
I"m either missing something, the article is full of crap, or this place was kicking out 8" long bolts made out of some really hardened steel with excellent QA looking for defects... and then Apple tried getting them to make tiny tiny screws?
Nope, nothing makes sense.
Soooo if you don't have enough screws produced locally, you just order more from China... exactly what Apple did.
When you have to do that often then it makes more sense to just assemble the product in China rather than blowing up your supply chain and incurring huge freight and logistics costs and hassles.
That kind of basic part seems like it should be easy enough to predict need of ahead of time, and cheap enough that pre-ordering a rough amount of material you might need would not cost much.
It's just an example of the sorts of difficulties that happen when you try to manufacture something physically far away from the bulk the supply chain. It's not just one component for one product - the screw is just an understandable example of the bigger problem. There are hundreds to thousands of components in the bill of materials for a typical computer and new products are being made all the time. These components are very often not made in the US because they have a high labor content so US firms aren't cost competitive on those parts. My day job is general manager of a small electronics assembly company. I deal with this every day. I don't think you even begin appreciate the problems with ordering stuff from halfway around the world for manufacturing.
It seems like lessons learned will mean that Apple will have been more careful about what they can produce locally vs. what they still need to order from China in order to assemble computers in the U.S. I'm pretty sure that is still a big goal for them.
Ordering from China isn't nearly as easy as you make it sound. I do this for a living. First off you immediately incur a 6-14 weeks of additional lead time (no they aren't going to ship it by airplane except in emergency - that costs a fortune) because it takes that long to make the product and send it on a boat across the ocean. So you end up stocking a lot of unnecessary inventory to guard against supply chain disruptions. Second, you have to have people working closely with your supplier in the foreign country or else you get serious quality and delivery problems. This adds a lot of cost and hassle. Yes there are plenty of Chinese suppliers who would think nothing of screwing even mighty Apple and Apple knows this. Third, you are grossly underestimating the advantage of having your engineers and supply chain people close to the suppliers. Problems happen and fixing them from half a world away is never easy. Fourth, when you cannot get components locally you incur a lot of currency risk. Fifth, a big part of the reason China produces so much of the world's electronics is because nearly the entire supply chain is nearby. This reduces costs tremendously.
I could keep going. If it were economically practical to assemble electronics in the US (even ignoring the labor price disparity), companies would be doing it. US companies would love to be able to buy their stuff locally but it's just not economic. I've bid on jobs where the target sale price was less than my cost of materials because the supply chain in China for electronics is that advantageous. Getting the supply chain back to this side of the pond will take decades to happen.
This is what happens when you ship all your manufacturing overseas for 40 years and suddenly expect manufacturing to ramp up overnight after 40 years of neglect.
I'm pretty sure the screw factory is fully automated C&C... Otherwise you can't produce tens of thousands of screws a day. Even with Chinese work efficiency.
Believe it or not, labor costs are rarely the biggest factor.
The issue is with a global supply chain is there are some things that some countries can just do better then what others can for a wide range of reasons.
Now China has an infrastructure that is better designed at making screws then there is at the US. Getting the right form of metal, to the places that can manufacture them, who have enough customers to make such verity profitable to mass produce. So this screw is made for US based Apple, and also Korea based Samsung, and LG...
For a company to manufacture such screws in America, they will need to find a place where there is a workforce ready to do such work, setup machinery and get a customer base for their products. American Manufacturing is good at making Big Things, Small things Asia seems to be better equip for.
As we moved away from Industrial Economy to Technology. The demand for small item manufacturing came into play.
If something is so important that you feel the need to post it on the internet... It probably isn't that important.
While a half dozen people have already pointed out the Mac Pro is not a laptop, no one mentioned there are still reasons to buy a $3k laptop. Laptops which act more like mobile workstations than a laptop often have very powerful processors, large high resolution screens, lots of RAM, large SSD hard drives, powerful video cards, and large batteries. I use a similar machine at work (closer to $2k because I don't need a good video card), and while my company could save $500 or more by getting me a desktop having a mobile work computer provides a lot of freedom. I can bring my computer to meetings, work from home (compliance requires I use a work machine at home), and work while on work trips.
When you have employees costing the company $100k-$200k per year, a 1% productivity enhancement from a better machine can pay for a $1k more expensive laptop in under a year.
Just because most people can do their jobs on 13" ultra slim laptops, doesn't mean everyone can.
-- All that is necessary for the triumph of evil is that good men do nothing. -- Edmund Burke
America Outsourced:
Pollution
Low wages
Poor working conditions
Dangerous working conditions
Pollution
Government Subsidies.
When Fascism comes to America, it will call itself Anti-Fascism, and tell you to give up your guns.
Believe it or not, labor costs are rarely the biggest factor.
It always surprises me how many people have a hard time grasping this simple fact. It is especially true when we are talking about something like a screw that is produced in batches that reach - at least - into the range of 100s of pieces per hour. Nobody is spending a significant amount of time per unit on this; not in design, not in manufacturing, not in QC. It is all automated. Often these end up being produced overseas not because the cost savings is significant but because the buyers didn't bother looking for a supplier in this country and potential manufacturers in this country didn't know there was a demand for this particular component. In the case of this particular screw, regulations are not a huge impact either (in comparison to say screws for medical, military, or space applications).
Damn_registrars has no butt-hole. Damn_registrars has no use for a butt-hole.
For want of a screw the computer was lost.
For want of a computer the contract was lost.
For want of a contract the worker was lost.
For want of a worker the taxes was lost.
For want of the taxes the infrastructure was lost.
For want of the infrastructure the country was lost.
And all for the want of a miniature screw.
the preceding comment is my own and in no way reflects the opinion of the Joint Chiefs of Staff
This is correct. Americans commonly have a mental picture of illiterate workers toiling on dirt floors making "cheap Chinese goods". That is not modern Chinese manufacturing and the preconception is one of our big blind spots.
Here's an example.
https://www.youtube.com/watch?...
This company makes beautiful multi-color silk-screened multi-layer through-hole plated PCBs for cheaper than I can buy bare copper plate board to etch them myself.
When I want to go to production I can have the boards shipped directly to an assembler there and I get finished machine assembled, soldered, and tested boards for less than the cost of shipping everything here and assembling it myself.
Same goes for coders that think they need mobile laptops when in reality they can either share an RDS session host or have their own VMs
Completely missing the OP's point. Back when my last company hired developers, we paid them between $500-1000 each and every day that they worked. If spending an extra $1000 on a laptop, or a really good monitor, got us an extra 10 minutes of work a day, it more than paid for itself. Hiring a replacement employee costs tens of thousands of dollars in lost productivity alone - if an extra $1000 on a laptop keeps them around for a few more months because you've created a nicer work environment it pays for itself again.
Being penny-wise and pound-foolish on the main interface between a developer and the company is common, but that doesn't make it sensible.
You're special forces then? That's great! I just love your olympics!
You're ignorant comments at the end hid an insightful post in the beginning.
For decades our economy (and environment) benefited from moving entire sectors of the manufacturing industry overseas. The USA has remained a manufacturing giant overall (in 2005 China was 20% of global manufacturing while USA was 18%) but this article illustrates the USA lost key capabilities in many sectors of manufacturing. This is not necessarily a bad thing since we gain significantly from our partnership with developing countries, but it is certainly a concern we should address.
About 10 years ago, as the economy was recovering from the financial crisis, manufacturing jobs starting "reshoring" back to the US. We went from 11.4 million manufacturing jobs in 2010 to 12.4 million jobs in 2016, and is now at about 12.8 million. The trend line for the past 8 years is pretty constant except for a bad year in 2016.
Unfortunately now we have a President who cares more about his talking points than actual progress. Creating artificial reasons to reshore manufacturing (like the trade war) instead of real market-based reasons only damages our economy overall while other developed economies take advantage of our foolishness. Being economically inefficient on purpose is not a great strategy.
-- All that is necessary for the triumph of evil is that good men do nothing. -- Edmund Burke
This is incorrect. I've ordered 500 boards from them in a single run before. The shipping costs more because its too heavy for e-packet delivery, but I wanted it via DHL for faster service anyway.
I've yet to find a US based fab shop that can ship an unmasked single layer board for the price of a nice board from JLC.
That's not the only gap. When I'm working on a piece of kit at 2:00 a.m. I don't want to have to call for a quote, email a gerber file, and wait for a salesperson. This is 2019. Online quoting and ordering should be a thing.
"C&C"
Oh like a music factory?