Foxconn Mulls Detroit, Los Angeles for Factory Site
November 9, 2012 by Trey Thoelcke
Since labor is so cheap in China, it is hard to see why Foxconn would make such a decision and hurt its margins. One reason may be political. Foxconn’s labor abuses have been in the news almost every week. Apple probably is concerned about the reaction of American consumers, and whether these reactions eventually will hurt sales. A factory in America, particularly in a place as badly damaged by the drop in manufacturing jobs as Detroit, would help Foxconn’s image, even if there is a financial cost. The factory also would help silence the “China has taken American jobs overseas” movement.
But the jobs that would be created in the U.S. may not be for highly skilled and highly paid labor. ZDNet reports:
[T]he production of Apple products is “very complex”, market watchers expect the new plants in the U.S. to only manufacture LCD televisions — the production process of which is highly automated and relatively simple, the report noted.
American labor just cannot hack it.
Douglas A. McIntyre
Essential Tips for Investing: Sponsored
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.