American Companies Doing Business Overseas in Record Numbers
Thursday, January 26, 2012 at 9:09AM 
There is much discussion lately about large American companies relocating their offices or manufacturing plants overseas, including the recent news about Apple, Inc. commiting to even more business in China even after years of U.S. loyalties. And why not, they get the job done! Naturally, most folks assume that saving money is the big motivation, but while doing business cheaper certainly helps the bottom line, there is another underlying reason that may be even more important, and a wake up call for all Americans to do a gut check...
In year 2007, just 30 days from the release of the first iPhone, Steve Jobs (Apple's Founder) was carrying and maticulously testing a prototype phone with him 24/7 to assess the phone, and make any changes, when he realized that the plastic faced screen it had was getting scratched all over from his car keys, from the phone being in his pocket. He called his executives into his office for a quick meeting, showed his team the scratches, and demanded that a glass, scratch resistant screen be designed and implemented. This would not be easy, as they had already chosen the plastic lens for many reasons, including the manufacturing limitations, and exact cutting that was required. It was estimated it could take 7 months just to make the change in the US. Of course, Mr. Jobs gets what he wants...
So, one wise executive left that meeting and immediatelly got on a plane to China. When he arrived he found not only that Foxconn, the largest manufacturer of consumer electronics in China, was preparing a new factory wing that could accomodate this change in two weeks, but they could have 10,000 employees ready to go in a matter of days, and production started in a matter of weeks. Dorms were built onsite to house workers, huge kitchens serving hundreds of pounds of rice a day, and long 12 hour shifts, were and still are the standard. Foxconn now manufactures personal electronics for 40% of the entire world, with clients like Apple, Samsung, Sony, etc.
When the first iPhone's glass design and specs were finally approved and manufacturing ready to begin, they did not wait until the next business day... instead they woke up thousands of on-site Chineese workers in their dorms at that precise moment, at around midnight, served them tea and a biscuit, and sent them on their 12 hour shift.
Needless to say, thats where the business went, and the deadlines were met. Like the beef in your Big Mac, the iPhone's parts come from all over the world. The processing chips are from Japan, the "rare" Metals from Malaysia, and on and on.. Productivity and efficiency have replaced the loyalties to doing business on American soil, even for a mega successful company like Apple that was founded in the states, and would likely do the business here if it was even possible. The fact it is not possible is because the proud American work ethic has died, we all are "entitled' now, and we no longer even bother to educate or train the mid level workers or trades anymore. It's like Americans have become the country that simply "phones it in" when we need efficiency, focus, and organization. When did that happen??
Sure, Chineese companies have been accused of all sorts of employee neglegence, overworking people, and those onsite dorms are pretty scary living conditions. But as Americans, we need to try and see the big picture here, and realize that as much as we are not, nor do we aspire to be Chineese, or live their ways, there is much to be learned by this pattern, and our way of life...one of the best in the world, is really so fragile, and even under attack, so much that if we are not careful, we may break it ourselves. It seems the image of the steel workers in Pittsburg, or the auto workers in Detroit, and the "built from the ground up" mentality is missing these days, and we cant keep relying on government, unions, taxes, subsidies, and foreign countries to solve our problems. We were founded on something very different...
The Mole
