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The Trump Administration

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Re: The Trump Administration

Postby Carl Spackler » Fri Nov 18, 2016 1:50 pm

Heard a report somewhere that Apple is planing to bring at least some I phone production back to the USA. I don't remember the source but it was on a radio report somewhere in the last week. It sounds like a very difficult thing to do with the costs but they know the business model and its on them to pull it off if that is the plan.
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Re: The Trump Administration

Postby Blue&White » Fri Nov 18, 2016 2:05 pm

From what I understand, there are very few human touches in the production of those things. You have humans doing QA, QC and some other functions but the manufacturing process is almost entirely automated. If the report you saw was accurate, curious to see how many jobs it brings back. I doubt it's many, but I guess that's irrelevant to anyone who happens to get one of those jobs.
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Re: The Trump Administration

Postby originalchas » Fri Nov 18, 2016 3:42 pm

"We are now building a new [advanced organic light-emitting diode] facility in Japan. We can make [OLED panels] in the U.S. too," he said. "If our key customer demands us to manufacture in the U.S., is it possible for us not to do so?"


The quote above was from a Sharp executive who is well connected with Mr. Guo, Foxxcon's CEO. Foxxcon, a Taiwanese company that manufactures I Phones in China, employs 690,000 people there. Apple is their biggest customer. "

Here is the article about Foxxcon considering moving production from China to the United States-

http://asia.nikkei.com/Business/AC/Appl ... re-sources

The article uses the usual line from other business sources that production is in China because that is where the skilled workers and supply chain companies are. Interesting that the Foxxcon and Sharp executives state they will put production where their customer wants to have it.

It was also interesting to see that it cost Apple $225 per unit to manufacture their IPhone 7 in China. A phone that is sold for $649 in the United States.

It was also interesting to see that the United States can assist the relocation of IPhone production through tax and other policies. That is just what China did to get the IPhone production moved there in the first place. My, what goes around comes around.
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Re: The Trump Administration

Postby originalchas » Fri Nov 18, 2016 3:55 pm

“Just got a call from my friend Bill Ford, Chairman of Ford, who advised me that he will be keeping the Lincoln plant in Kentucky -- no Mexico,” Trump wrote in a Twitter post.


Really? So Lincoln and Ford Escape SUV production stay in Kentucky and Ford states they will not be going to Mexico?

Here is the article for those interested to see some good news about US manufacturing-

http://www.bloomberg.com/news/articles/ ... n-kentucky

“We are encouraged that President-elect Trump and the new Congress will pursue policies that will improve U.S. competitiveness and make it possible to keep production of this vehicle here in the U.S.,” the automaker said in an e-mailed statement.
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Re: The Trump Administration

Postby Blue&White » Fri Nov 18, 2016 4:06 pm

Those factories were never closing and US jobs were never at risk. All that happened was some production was retained in the US instead of moved to Mexico but the net impact on US jobs was nil. Trump is taking a victory lap over it anyway. For Ford, I think it creates a potential problem.

Ford is very much a global company. They sell a lot of cars overseas. I don't know if it still is, but the Ford Escort used to be the most popular car in the world. And, they do production globally. If they get strong armed into moving more of their production here, and if other countries retaliate against Trump's policies by adding import tariffs of their own, Ford may have a real problem.

It will be interesting to see how this game plays out. The US is the largest consumer market on the planet and other countries pick fights with us at their own risk. We can really, really hurt their economies. But, they can also hurt ours. As one example, if the collapse of global trade arrangements and strong arm tactics significantly reduce Ford's sales volumes, it will not matter where those cars are made because they won't need to make nearly as many.

It's going to be an interesting few years.
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Re: The Trump Administration

Postby originalchas » Fri Nov 18, 2016 4:25 pm

It is amusing to read these arguments over the threat for our economy produced by defending manufacturing here.

How bad can it be to reverse our trade policy? Right now we stand to send $1 trillion to China alone due to trade deficits projected with them over the next three years. $ 1 TRILLION.

If Trump takes some victory laps over a trade victory here or there good for him. If he gets many more pieces of good news he may assure the post industrial states of Pennsylvania, Wisconsin, Ohio, Indiana, Michigan, and North Carolina may not vote Democrat/free trade for the next generation.

Time will tell, but this election might be looked back on like 1860 and 1932 as transformative, realigning politics for decades.
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Re: The Trump Administration

Postby Blue&White » Fri Nov 18, 2016 7:08 pm

It is amusing to read these arguments over the threat for our economy produced by defending manufacturing here.

And that, boys and girls, is how we build a strawman.

I never argued against defending manufacturing here in the US. I've also said, for many months, that, while I despise Trump, I agreed with him on the impact of trade deals on the US economy. I've also said I thought the reaction to Brexit - where it was viewed as a victory for nationalist/racists/etc. was completely missing the point and ignoring the frustrations that modern globalization models had on western industrialized economies.

But, ignoring the potential impacts from Trumps proposals and dismissing criticisms of them as simply being "alarmist" is not a reasonable way to go forward. The US relies heavily on trade and while we can certainly do more to protect US workers, we can't just put US companies in a position where they can't compete abroad.

Time will tell, but this election might be looked back on like 1860 and 1932 as transformative, realigning politics for decades.

It may also be looked back at like 1928 and 2000 as preludes to the smoking ruins of our economy. A bit too early to really say.
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