In a recent interview, Apple CEO Tim Cook addressed the common perception that Apple’s manufacturing presence in China is primarily due to low labor costs. He clarified that this notion is outdated, stating, “The popular conception is that companies come to China because of low labor costs. I’m not sure what part of China they go to, but the truth is China stopped being the low labor cost country many years ago.”
Instead, Cook emphasized that Apple’s decision to manufacture in China is driven by the country’s exceptional concentration of skilled labor, particularly in advanced tooling and precision manufacturing. He elaborated, “The reason is because of the skill, the quantity of skill in one location, and the type of skill it is.” Cook further highlighted the depth of China’s vocational expertise, noting, “The tooling skill is very deep here. In the US, you could have a meeting of tooling engineers, and I’m not sure we could fill the room. In China, you could fill multiple football fields.”
This insight underscores that Apple’s manufacturing strategy in China is influenced by the availability of highly specialized skills essential for producing complex and high-quality products. So where does the US start to compete with China in the “skilled labor” category? It may be starting with the prioritization of skilled trade professions in the United States.
China’s superior skilled labor force, particularly in areas like manufacturing, engineering, and technology, is a result of several key factors that have shaped its workforce over the last few decades.
China has a strong focus on Vocational Training
- Education System: China has made significant investments in its vocational education and training (VET) system, which focuses on developing a large pool of skilled workers for specific industries. In contrast, the U.S. has traditionally placed more emphasis on four-year college degrees, often at the expense of technical education.
- Apprenticeships and Technical Colleges: China has developed a robust system of apprenticeships, technical colleges, and vocational schools that directly supply skilled workers to its booming manufacturing and tech sectors. These programs often involve hands-on learning, which leads to highly specialized skills.
Why the U.S. Should Prioritize Skilled Trade Careers
- There’s a growing shortage of skilled trade workers in the United States.
- Many current tradespeople are nearing retirement age, and younger generations haven’t filled that gap. These jobs often offer competitive wages and benefits without the burden of massive student debt.
- Skilled trades literally build and maintain the country: infrastructure, homes, transportation, manufacturing.
- Without them, high-tech industries can’t function. Companies like Apple rely on skilled labor as the backbone of their organization.
Cultural Perceptions of Skilled Trades
- In the U.S., there has been a long-standing stigma against trades, with many viewing them as less prestigious than a college education. However, this perception is shifting, especially as people realize the earning potential in skilled trades. Some tradespeople can earn a very good living, especially in areas where there is a high demand for their skills. There’s also growing recognition that skilled trades are essential for the economy, and efforts are being made to encourage younger generations to pursue these careers.
Pureland Supply has been offering a skilled trade scholarship since 2018.
We started our scholarship program in 2018 to support students pursuing careers in a skilled trade. To be eligible, applicants must have been accepted to an accredited trade school, vocational college, technical school, or community college for the study of trade, craft, or labor occupations. Selection is based on the applicant‘s ability to articulate the importance of their chosen trade in today’s society and their personal motivation for pursuing it.