11 Dec '12, 8am

#Apple is moving (some) manufacturing back to the US. Should Asian businesses worry?

#Apple is moving (some) manufacturing back to the US. Should Asian businesses worry?

Speed to market – Assembling devices within the U.S. can significantly reduce shipping times and logistics costs. The cost of transportation is on the rise , after all. Risk reduction – Events like the Thailand flooding proved to be catastrophic to companies that had manufacturing bases there, such as hard drive producers . Moving production closer to one’s biggest market makes sense in terms of reducing or mitigating these risks. Boosting the domestic economy – To my mind, the bigger effect here would be that Apple can give the domestic economy a big boost by hiring and setting up shop locally, and therefore encourage more consumption (of iPhones, iPads and Macs, perhaps?). It’s like pump-priming in macro-economics. Give the people more money to spend so they can buy more of your products! Goodwill – Criticisms due to labor issues can take a toll on a company’s brand and ...

Full article: http://e27.sg/2012/12/11/why-apple-is-bringing-production...

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