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Do Not Topple The Global Economy Mr Trump

I have nothing against you President Trump. I have nothing for you either.

But, when I heard of the directive to manufacture  iPhones in USA, I had to write this post.

This is one of the weakest ideas I have heard from Supply Chain point of view, and I am not indulging in a political debate.

I am merely pointing out what even a supply chain new comer will tell you – with the current global configuration of supply network of companies such as Apple, any meaningful change of this nature will be impossible to achieve.

Why?

Because, Apple supply chain has been extensively studied and documented. One of the better reports (though a bit dated) is located at this link and I am sourcing a few relevant data below from this report. For example, take a look at the following table showing key supply chain activity location sourced from (https://www.apec.org/-/media/APEC/Publications/2013/7/Global-Supply-Chain-Operation-in-the-APEC-Region-Case-Study-of-the-Electrical-and-Electronics-Indust/2013_psu_GSC_EE.pdf):

It is clear almost all the activities happen in the Far-East.  Now take a look at another table, also sourced from the same report (https://www.apec.org/-/media/APEC/Publications/2013/7/Global-Supply-Chain-Operation-in-the-APEC-Region-Case-Study-of-the-Electrical-and-Electronics-Indust/2013_psu_GSC_EE.pdf):

Global Supply Chain Group

By Peacefulmovements [CC BY-SA 3.0 (https://creativecommons.org/licenses/by-sa/3.0)], from Wikimedia Commons

None of this is news, even to neophytes in the game of business. To unravel and roll back supply chain globalisation achieved over decades will be near impossible, even for the most determined politician.

Global economy is delicately perched, and precariously balanced. It is also top heavy – just like the picture.

It does not matter how we got here.

It does not even matter which stone represents whom – bankers, politicians, business people, academics, common man – we are all going to fall in a heap together if a massive re-balancing of the stones is attempted at this juncture.

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