iPhone and the “American Dream”
Today, millions of American manufacturing jobs have been moved abroad; many companies depend entirely on factories halfway around the world. However, this may soon change.
The Covid-19 pandemic has shown how fragile production chains can be. Many factories in China have been forced to close due to the outbreak of the disease. But that’s not all. Even when factories in China resume operations, companies still face disruptions in both land and air transportation.
Experts in the manufacturing sector said that last year, when the epidemic broke out in China, the situation became extremely difficult, factories in the US could not afford to make up for the shortage.
That’s also why in January, US President Joe Biden signed an executive order to strengthen the “Buy American” strategy, encouraging the federal government to spend its budget every year. billion dollars to buy goods that have 75% of the parts made in the US. He hopes the move will boost demand for US-made products, prompting companies to reinvest in manufacturing at home.
Mr. Biden is not alone in trying to solve this problem. In April, Apple CEO Tim Cook pledged to spend $430 billion on investments in the U.S. to create 20,000 more jobs over the next five years in areas including 5G wireless networks, artificial intelligence, and more. silicon generators and processors.
Even with billions of dollars of investment, Apple and Tim Cook still find it difficult to turn the US into a place to produce its key devices. iPhone – Apple’s golden egg – will most likely continue to be assembled in factories in China for many years to come.
To make a change, experts say, the US will need to spend years investing in new manufacturing technologies and subsidizing companies to make up the difference in wages and salaries. costs compared to foreign countries. America also needs to rebuild its education and apprenticeship system to improve the workforce for manufacturing and convince people that this is a career worth entering.
Besides, the global supply chain of components for products that Americans love, such as cell phones, cars, computers, furniture, also need to be brought back to the US.
However, the biggest hurdle facing the US manufacturing industry is probably users. Although the “Buy American” strategy poll yields relatively positive results, users in the US will still buy an item no matter where it comes from.