It’s somewhat like “going back to the future.” Manufacturing in the U.S., reminiscent of 30 years ago, has the potential to re-evaluate operations to avoid substantial tariffs on electronic devices like smartphones and laptops currently made in China. However, unlike decades past, it’s now driven by robots, overseen by leading experts in manufacturing and robotics.
Take, for instance, the Chicago-based Motorola, known for creating mobile phones. Contrary to some opinions suggesting that restoring U.S. manufacturing for electronics can be done in just three years, it’s not quite that straightforward. There might be a minimal rise in unit costs.
In the past three decades, robotic technology has significantly advanced and become more cost-effective. Research indicates that if 50 million smartphones are assembled and tested annually in the U.S. using imported parts, the increase in cost could be just $30 per device. A suggested 25% bump in labor costs or an exaggerated $3,000 price point mentioned in financial discussions seems a bit off.
According to APSTL, around 6,000 robots would be needed in U.S. facilities to produce 50 million smartphones at a yearly cost of about $7.2 billion. This operation would require a skilled workforce of around 30,000 people, earning an average of $110,000, while also displacing approximately half a million jobs. By utilizing robots to produce parts domestically, the U.S. could bypass tariff costs associated with basic components currently sourced from China.
Nevertheless, to maintain a competitive edge, it’s suggested that at least 10% of the budget should go towards research and development. American firms need to guard new technologies created domestically to prevent the unregulated transfer of advanced manufacturing techniques to rivals and adversaries through outsourcing.
It’s crucial to understand that human involvement mainly supports robotic operations, primarily through monitoring, maintenance, programming, and engineering tasks. This approach differs significantly from traditional mass production and aligns with the skills and preferences of the newer workforce. Emulating old Motorola methods, new employees would undergo rigorous vocational training.
This method could also facilitate the return of other electronics manufacturing, including chips for laptops, data center servers, and vehicles—an industry segment China is increasingly dominating. While chip production is already heavily automated, restoring U.S. leadership requires not just more robotics but a strong emphasis on research and development.
The previous U.S. administration could indeed reinvigorate American manufacturing if it strategically invests in future robotics and the workforce that supports them, potentially reclaiming the nation’s former glory.
