Remember reshoring? You know, the term which is defined as American manufacturers moving jobs and factories back to the U.S. because of the shrinking logistical advantages and costs of sending manufacturing abroad?
Well, it’s one thing to talk about it, and it’s another thing entirely to actually show it in action. Which is why we’re going to do just that.
In July, we mentioned in passing that Motorola was going to open up a factory in America and start producing phones right here in the U.S. As it turns out, those phones are finally starting to hit the market, which means that analysts are now getting the chance to see these American-made phones hands-on.
The analysis firm IHS recently took a look at the Moto X in order to get a look at its components and break down the costs of producing the phone.
Here’s what they found:
- The total cost of components used to build the Moto X is $214
- The assembly cost of the phone is $12, bringing the total cost of the phone to $226
What may be surprising to people unfamiliar with American manufacturing is that the cost of this phone really isn’t that much more expensive than the cost of other phones like the iPhone. As an example, the Galaxy S costs Samsung $8.50 to assemble, and the iPhone costs about $8.00. Both of those phones are made abroad, and at around $4.00, the cost-savings just isn’t that great.
One of the other advantages of the Moto X (and actually, of American manufacturing in general) is that it allows for customization. Unlike foreign factories, which often require large-scale orders of basic products, local factories can essentially be made-to-order, allowing for customized products at a much lower price than we’d see otherwise.
The Moto X is just one of many products made here in the U.S.A., but this recent analysis really goes to show that American manufacturing is a viable option, even for electronics companies who have typically produced exclusively overseas. American manufacturing is here to stay, and we can’t wait to see what other companies join in and (once again) start making their products here in America.
Photo credit: IHS