Apple Inc. has announced a significant commitment to the U.S. manufacturing sector, pledging to invest $600 billion over the next four years. This investment, especially the focus in the national goals on improving factory operations all over the country, dovetails nicely with those goals. It is indeed meant to produce a “domino effect,” leading other corporations to follow suit. That news was buried in an interview with Apple CEO Tim Cook by financial commentator Jim Cramer, which aired the day after the announcement.
The administration’s $79 billion, ambitious investment plan will bring immediate impact to 79 factories across the country. Tim Cook highlighted the scale of this initiative, stating, “And so it is an extraordinary commitment. And there’s 79 factories across the U.S. that will benefit from this.” Apple is increasing its factory buildout though, as one piece of a much larger strategy. This step supports its supply chain further and reinforces its manufacturing base in the U.S.
Included in this investment is a flashy $2.5 billion investment to deepen Apple’s relationship with Corning. The agreement aims to increase the production capacity of Corning’s glass plant in Kentucky. This expansion continues to illustrate Apple’s dedication to furthering American manufacturing and building relationships with suppliers already located within the states.
“We can’t be everywhere. I wish we could, but we are putting $600 billion to work in the next four years,” – Tim Cook
Cook’s remarks during the interview suggest that this investment will not only bolster Apple’s production capabilities but create job opportunities and skill development programs in various regions, including a new initiative in Detroit. Apple will have an important role in training employees for these factories. Further, this new initiative called the Local Climate Adaptation Program will greatly strengthen those local economies.
Unfortunately, CNBC’s Jim Crammer, who did the interview with Cook, heard no complaints about the planned $600 billion investment. That’s a clear indication that just about everyone—from shareholders to industry watchdogs—are all in favor of Apple’s positive plans.
Cook expressed confidence in Apple’s ability to make sound investment decisions, stating, “I think most of our shareholders believe that we’re in the best position to, to make these type of decisions.” To many, this sentiment would seem contradictory to a company often characterized by careful planning and unheralded innovation.
This $600 billion investment is set to reshape our tech industry. Yet it would dramatically change the course of the entire U.S. economy. Apple is deepening its manufacturing roots in the U.S. This positive step not only enhances its operational capabilities, but provides a model and encouragement to other companies that want to grow, too.