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China Iphone Apple Technology

A Tiny Screw Shows Why iPhones Won't Be 'Assembled in USA' (nytimes.com) 499

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.

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A Tiny Screw Shows Why iPhones Won't Be 'Assembled in USA'

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  • by Joe_Dragon ( 2206452 ) on Monday January 28, 2019 @11:39AM (#58034026)

    no one in the usa will work for $2.15/hr 60-80 hours a week + must live on site.

    • by Anonymous Coward on Monday January 28, 2019 @12:16PM (#58034330)

      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.

    • by jellomizer ( 103300 ) on Monday January 28, 2019 @12:22PM (#58034374)

      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.

      • by sycodon ( 149926 ) on Monday January 28, 2019 @12:47PM (#58034582)

        America Outsourced:

        Pollution
        Low wages
        Poor working conditions
        Dangerous working conditions
        Pollution
        Government Subsidies.

        • by Dracos ( 107777 ) on Monday January 28, 2019 @01:33PM (#58034940)

          We absolutely did outsource manufacturing.

          And in 15 years, China will be outsourcing all those things to Africa.

          • by caseih ( 160668 ) on Monday January 28, 2019 @04:21PM (#58036026)

            Except that the American manufacturing sector is doing just fine, better than it ever was. See https://www.forbes.com/sites/t... [forbes.com] . But the nature of manufacturing has changed over the years and involves fewer jobs before. And the things that are manufactured tend to not be consumer goods but big ticket items. For example agricultural equipment is still made in the US and exported all over the world. China imports this equipment. There are cottage industries in the US making all sorts of goods (with a lot of Chinese components). All told, American industry is quite healthy despite what some folk say loudly.

            As was said earlier, labor is not really a part of the equation when it comes to overseas outsourcing. It's the supply chain that draws companies to China. For example this company making pinball machines in China: https://www.youtube.com/watch?... [youtube.com]

            Attempts to start a trade war with china do nothing to help American industry. In fact it hurts it by cutting off the supply chain we need to make cool things here at home.

      • MOD PARENT UP (Score:5, Insightful)

        by damn_registrars ( 1103043 ) <damn.registrars@gmail.com> on Monday January 28, 2019 @01:01PM (#58034694) Homepage Journal

        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).

        • They're the same people who don't understand that increasing the minimum wage of someone making 100 hamburgers an hour by $1 won't increase the cost of each hamburger by $1.

      • Careful, you're dangerously close to suggesting that other countries might be legitimately better at some things than the States, and that the USA isn't the best country evarrrr in all possible measures.

        The wages argument really comes with this ugly inference that the *only* reason other countries can do things is because they are poorer.

    • by dryeo ( 100693 )

      I saw something on Chinese automotive factories. The price of labour is actually pretty high as all the workers have to be highly trained robot technicians. Seems lots of their factories are very modern.

      • by ElizabethGreene ( 1185405 ) on Monday January 28, 2019 @01:05PM (#58034714)

        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?... [youtube.com]

        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.

  • Re (Score:5, Funny)

    by pele ( 151312 ) on Monday January 28, 2019 @11:40AM (#58034038) Homepage

    The article never showed the actual screw, I was hoping I'd see a screw...

  • Impossible! (Score:5, Insightful)

    by Pyramid ( 57001 ) on Monday January 28, 2019 @11:43AM (#58034068)

    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...

    • Re:Impossible! (Score:5, Insightful)

      by omnichad ( 1198475 ) on Monday January 28, 2019 @11:51AM (#58034136) Homepage

      Let's not stop there on the excuse train. They could still import the screws and manufacture in the US.

      • Let's not stop there on the excuse train. They could still import the screws and manufacture in the US.

        Assemble not manufacture.

    • Re:Impossible! (Score:5, Informative)

      by NixieBunny ( 859050 ) on Monday January 28, 2019 @11:53AM (#58034156) Homepage
      You must not know much about what goes into a modern electronics product. The phones and tablets and laptops being sold today are too small for off-the-shelf fasteners to be used. I make Nixie tube wristwatches in the USA, and I use the smallest American screw I can get to hold them together. That screw is about twice as big as the average screw in a modern phone.
      • Except that phones are a common product these days, and standard screws exist for assembling them. Besides, we're not talking about a phone or smartwatch, but about a desktop computer (Mac Pro).
        • Re:Impossible! (Score:5, Insightful)

          by jythie ( 914043 ) on Monday January 28, 2019 @12:11PM (#58034290)
          I think part of the issue is that these screws are common in China, but in the US they require special runs. Not enough companies in the US use them to justify their mass market here.
          • Re:Impossible! (Score:4, Interesting)

            by StuartHankins ( 1020819 ) on Monday January 28, 2019 @12:44PM (#58034570)
            Ding ding ding, finally someone who understands the issue.

            If we are to bring back manufacturing to the US, we have to start somewhere. Companies who have large volume and specialty requirements probably won't be the first ones leading this, there are way too many dependencies to make this happen. We need some smaller companies with more mainstream needs to lead the way.
      • by Kokuyo ( 549451 )

        That sounds ike something I'd really like to own... unfortunately, I haven't worn a wristwatch in a decade...

      • Re:Impossible! (Score:5, Informative)

        by Mashiki ( 184564 ) <mashiki&gmail,com> on Monday January 28, 2019 @12:53PM (#58034634) Homepage

        Can I put you in touch with Fastnal? [fastenal.com] Cause our company uses those tiny ass-as-shit screws that are used in cellphones and laptops in our products. They have no problems getting them to either import or doing batch runs of 2000 units, we use one of their local branch offices and have yet to see a delay or missed shipment.

    • Re: (Score:3, Funny)

      by Vanyle ( 5553318 )

      I got an idea, why not use one of the already custom made screws you have instead of creating a new custom-made screw? ooo, i have an idea. With new modern CNC machines you can simply have a serialized system where each screw needs its own bit, and the repair techs have to 3d print a new driver bit for each individual screw when it comes time to work on them!

    • All those custom screws are pointless anyway. Within a few months, screwdriver manufacturers start adding your custom design to their range, and your custom screw is now as accessible as all the previous attempts. All it does is create an annoyance as people have to update their screwdriver sets.

  • Soooo if you don't have enough screws produced locally, you just order more from China... exactly what Apple did.

    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.

    I still don't see any real barrier to assembling some things here, and over time trying to ramp up local production to levels required.

    The alternate link states "if the NYT report is accurate, it's unlikely t

    • by sjbe ( 173966 ) on Monday January 28, 2019 @12:08PM (#58034264)

      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 [wikipedia.org]. 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.

      • by Radical Moderate ( 563286 ) on Monday January 28, 2019 @01:19PM (#58034810)
        Yep. Manufacturing takes an ecosystem, it's almost impossible to do everything in house. Hell, Ford sub'd parts for the Model T. I have a friend who used to own several businesses, including a machine shop. As his clients moved their manufacturing overseas, his machining business dried up and he eventually had to shut it down.

        Revitalizing a manufacturing sector isn't trivial, one company, even Apple, can't do it overnight.
      • 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.

        It costs less than $2,000 to import a 40-foot shipping container. When I ran the math in 2015, it was $1,300, making the shipping cost of a pair of men's cotton trousers from China to the dock at the US six cents.

        You know how we make clothes in China? Well, those clothes are made of cotton grown in Egypt or the United States, shipped to Indonesia for processing and spinning, shipped to the United States again for weaving, shipped to India for dying, shipped to China for manufacture into clothing, and th

      • Apple already has many, many people working closely with China as far as suppliers of everything goes. They already have a shipping pipeline so I seriously doubt for Apple it's going to take 6-14 weeks to get parts... I'm sure they would of course have some buffer of supplies, but Apple can more than afford to build up a base of supply on hand.

        The real surprise to me is that Apple ever ran into this problem to begin with, as one thing they know how to deal with really well is supply chain issues. That's w

  • by Anonymous Coward

    ...with 20 employees on 1000 screws a day? Wouldn't that bring in like maybe $10 total daily?

    • Re: (Score:3, Informative)

      by Vanyle ( 5553318 )

      I would guess these are not rolled screws. Precision custom screws like this can easily cost > $1 each. One set that we make costs $10 for a screw that is about .250" long

    • ...with 20 employees on 1000 screws a day? Wouldn't that bring in like maybe $10 total daily?

      These are iScrews.

      I wonder if the imported screws have tariffs slapped on them. That would be hilariously ironic.

    • These are custom made, not mass produced, so they won't be cheap. And there's probably only one machine in the shop that can be used to make the screws. One employee, eight hour shift, two screws a minute equals 960 screws a day, so it's in the right ballpark.
  • Couldn't they have just ordered the custom screws air-shipped from a Chinese factory or redesigned the thing to use a more ordinary screw? I wonder what's so special about that particular screw. Is it a "tamper proof head" like Apple's 5-point "Torx" security screws to keep mere plebs from opening the hardware?
    • Couldn't they have just ordered the custom screws air-shipped from a Chinese factory or redesigned the thing to use a more ordinary screw? I wonder what's so special about that particular screw. Is it a "tamper proof head" like Apple's 5-point "Torx" security screws to keep mere plebs from opening the hardware?

      I think the whole point here was to make the things as completely in the US as possible and it turned out that US industry cannot even handle large volume screw production. Additionally Trump's useless steel tariffs aren't helping any entrepreneurially minded US'ians trying to fix this market gap to compete with the Chinese since I don't think screw manufacturing is a high margin business and tariffs are not helpful in that respect

      • I think the accepted term is "Americans".

      • by mysidia ( 191772 )

        and it turned out that US industry cannot even handle large volume screw production.

        The problem is not large volume screw production... its large volume custom screw production with very short notice given.
        Don't expect to go to a factory with a custom product design and expect to have a huge volume of them manufactured for reasonable cost without any lead time.

        It takes setup time and money to build out a certain amount of production capacity.

    • by sjbe ( 173966 ) on Monday January 28, 2019 @12:14PM (#58034318)

      Couldn't they have just ordered the custom screws air-shipped from a Chinese factory or redesigned the thing to use a more ordinary screw?

      Possibly but then they are adding cost to the product. You are missing the point. It isn't just ordering some specific screws. The screws are just an example of the broader problem. There are literally thousands of components with the same problems because the supply chain for them in the US has withered and it takes a long time to build it back up even when it is even possible. For high labor content work it's just not economic to make the stuff in a high wage country like the US. I do this for a living so I know. The problem is that the supply chain in China already has all this stuff figured out and engineers can easily get what they need locally over there.

      Believe me if it were easy and economic to build this stuff in the US, companies would be doing it. NOBODY who does this stuff for a living (and I do) wants to deal with ordering components from halfway around the world if they don't have to.

      I wonder what's so special about that particular screw. Is it a "tamper proof head" like Apple's 5-point "Torx" security screws to keep mere plebs from opening the hardware?

      Don't fixate on the screw. The screw is just an example of a problem they will face over and over again. The point is that the supply chain just isn't robust for electronics manufacturing in the US like it is in China. Fixing this problem will not be easy or quick.

  • by Mr. Droopy Drawers ( 215436 ) on Monday January 28, 2019 @11:46AM (#58034094)

    China didn't start out with multiple vendors to provide the hardware. They grew it over time.

    Manufacturing in the US is sustainable and it doesn't have be for slave wages either. It takes automation and time to ramp up suppliers. But, this can't happen over night. Apple knows that. And those screws? They can get the material from China overnight. The connections are still there. Apple just doesn't know them because they lost connection with their own supply chain.

  • by pecosdave ( 536896 ) on Monday January 28, 2019 @11:47AM (#58034098) Homepage Journal

    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

    • by Megol ( 3135005 )

      No the ones that sold you out are the manufacturers that want to make as much money as possible and the consumers that want to buy products as cheap as possible even if made by slave labor. And don't forget the voters.

      Reap what you sow.

  • Suprised that one one produces pentalobe screws (Apple proprietary)!? A hint try screws that look like: (+) or (-)
  • by DatbeDank ( 4580343 ) on Monday January 28, 2019 @11:50AM (#58034116)

    The answer then is to go to the machine shop and ask what it will take them to increase their output 2x, 3x,4x, etc and supply the loans neccessary to make it happen.

    This is how every German, Chinese, Japanese, and we'll pretty much every other foreign business works with its domestic suppliers .

    It seems Apple just was looking for an excuse.

    Doubly so, GE and several car manufacture have plants in Texas where they have the pull to get whatever screws they need. Those factories just aren't in hip and cool Austin.

      Maybe if tech companies could lose their hard one for that boring college town, they'd be able to realize the benefits of domestic manufacturing.

    • To be fair, Apple has developed a rather shitty reputation in the supply-chain universe for doing just that. Becoming %60+ of a vendor's business for a few quarters (if you are lucky!) just to pull out because someone else can save you $.001 per part is devastating to the supplier unless Apple footed the bill for infrastructure improvements to scale up, and even then, you can put a successful business on life support by disrupting enough of their durable business with your temporary gigantic order.

      You refe

  • by nycsubway ( 79012 ) on Monday January 28, 2019 @11:50AM (#58034124) Homepage

    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.

    • by Ogive17 ( 691899 )
      Or don't single source the component to a mom and pop shop down the street.

      It's great to support the local guy but there's only so much capacity.

      Dual source it. Give 1000 pieces/day to the small shop and have another source that will sell you 30,000 at a time to use as safety stock. We're talking tiny screws. The 30k safety stock is almost no inventory $$ and takes up no storage space.

      Self inflicted wound.
  • They chose a really really bad shop, not using the proper equipment for screws. Any good screw machine (swiss machine) should be able to produce screws like crazy, cycle times should be in seconds. Single pass on the main spindle, parting cut then finish machining on secondary spindle. You should be able to run i'd guess 10 screws a minute unless it was something super crazy on one machine, 24-hours a day would be 14k screws / day on a single machine. Granted this would be done on a $150K+ machine, mig

  • Apple. (Score:4, Insightful)

    by ledow ( 319597 ) on Monday January 28, 2019 @11:55AM (#58034182) Homepage

    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.

  • by Jfetjunky ( 4359471 ) on Monday January 28, 2019 @11:56AM (#58034188)
    Austin is not the place for high quantity fabrication. Yes, there are some machine shops in town, but most of Austin is very similar to the South, in that there is much less manufacturing. Houston has more, but mostly to support oil operations.

    Every day here more industrial and garage type spaces get turned into crossfit gyms and breweries. (not that I'm particularly against either, just a point blank example of what is thriving here).

    Side story. Years ago I spotted an awesome vintage garage for sale/rent. I thought it might have been my chance to have a shop of my own. I talked with the owner. He essentially told me "You don't want to do that". The combination of high taxes and environmental restrictions were essentially why he shut it down in the first place. He flat out told me he was hoping for a trendy tenant. Bar/restaraunt/what have you.
  • by tsstahl ( 812393 ) on Monday January 28, 2019 @12:01PM (#58034222)

    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.

  • by account_deleted ( 4530225 ) on Monday January 28, 2019 @12:05PM (#58034246)
    Comment removed based on user account deletion
  • by pi_rules ( 123171 ) on Monday January 28, 2019 @12:06PM (#58034250)

    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.

    • 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.

      My thoughts exactly. A single screw-making line ought to pump out 1,000 screws an hour- or more- and they should have several of these machines! Apple chose a shop that wasn't up to the task, and the shop took a job from apple that they weren't competent to execute.

  • by sunking2 ( 521698 ) on Monday January 28, 2019 @12:09PM (#58034270)

    It's not about Apple making products in the US. The point is for the supply chain to develop to support it, which in the end creates far more jobs than a single Apple plant that does final assembly.

  • by bobbied ( 2522392 ) on Monday January 28, 2019 @12:09PM (#58034278)

    It doesn't matter WHERE you build stuff, you have unique supply chain logistics to work out.

    What do you bet that if Apple has a need for screws in Austin and is willing to pay enough, some bright business person will set up a screw manufacturing business that's closer and sell what Apple needs? That's what supply and demand will do in a free market system. This means that IF you can pull manufacturing back into the USA, you will also pull the parts supply chain back to the USA as a secondary effect.

    So I see Apple's trouble with it's supply chain being a good thing. There are a lot of places in the USA where they used to make screws, but now don't as this moved off shore. Now there is a chance of puling those jobs back, shortening the logistics supply chain, lowering transportation costs and making inventory management less difficult. In the mean time, Apple just needs to manage their supply chain a bit better so they don't run out of parts.

    • by thomn8r ( 635504 )

      This means that IF you can pull manufacturing back into the USA, you will also pull the parts supply chain back to the USA as a secondary effect.

      So I see Apple's trouble with it's supply chain being a good thing. There are a lot of places in the USA where they used to make screws, but now don't as this moved off shore.

      They won't. This will be the reason they cite for keeping everything offshore. Like companies that lay off all the American employees, then claim they need H1-B's because they don't have enough locals.

      • They used to make things like screws in and around Rockford IL. There are a pile of unemployed folks with experience as machinists just sitting there waiting for work and I'll bet there are empty factory buildings just ready to go back into production too. IL may not be your state of choice for such an operation, but Madison WI is very close to Rockford and is generally open for business if you want to leave the tax pit of IL.

        So I believe they will, assuming that the total price for such US made parts is

  • by oh_my_080980980 ( 773867 ) on Monday January 28, 2019 @12:27PM (#58034410)
    This is a non-story. Thank you New York Times for your bullshit reporting.

    This is about supply chain. Standard for any business. Apple knows their supply chain requirements. They know what steps need to be taken in order for the supply chain to work in the US. The fact that Apple did not take those steps - and worse that NYT did not grill Apple about - shows a complete management failure on Apple's part.

    As mysidia pointed out:

    "The problem is not large volume screw production... its large volume custom screw production with very short notice given.
    Don't expect to go to a factory with a custom product design and expect to have a huge volume of them manufactured for reasonable cost without any lead time."

    This is easily fixed and a non-story.
  • by sbrown123 ( 229895 ) on Monday January 28, 2019 @12:33PM (#58034462) Homepage

    So, this tiny screw problems is this:

    "20-employee machine shop that Apple’s manufacturing contractor was relying on could produce at most 1,000 screws a day."

    That sounds like a sourcing problem if a shop you try to go through can't produce more than 1K screws a day. That shop should have been producing a hundred times that per day. For 20 people that is 50 screws per day. For an eight hour work day that means, per employee, each screw took close to 10 minutes to make. Were they hand crafting these things?! At half the staff, figuring not everyone is actually producing screws, that is still 5 minutes per screw.

  • by account_deleted ( 4530225 ) on Monday January 28, 2019 @12:57PM (#58034664)
    Comment removed based on user account deletion

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