Shanghai, the capital of China’s Zhejiang province, has been known as the center of Apple manufacturing in the world. In recent years, the city has undergone a transformation from a manufacturing hub to a research-and-development center for several major tech companies.
The city also has strong ties with Apple, as the electronics giant has one of its main research and development facilities there. Now, with the addition of three new Apple subcontractors to the mix, Shanghai has become home to the most Apple-intensive manufacturing base in the world.
The recent suspension of production for some iPhone, iPad, and Mac production lines in Shanghai should not come as a surprise. Even though the industrial action may have started in the country’s second-largest city, it has quickly spread to several other major manufacturing centers around the world. The timing of the announcement isn’t suspicious either. The Apple factories in three other cities have just been suspended, and the production shutdowns have been happening right when Apple’s suppliers are most likely to announce new products.
It’s likely that the suppliers who have announced new products ahead of schedule will have to suspend production sooner or later. If the government can’t or won’t do anything to protect its manufacturers, the production shutdowns are likely to become widespread.
What’s causing the production shutdowns?
The main causes of the production shutdowns are supplier financial issues and labor disputes. Apple is the largest single supplier to most of the world’s manufacturers, and it has a significant impact on the global supply chain. The company has an extensive supplier network of more than 3,000 vendors who provide parts, software, and services to the company.
Most of these vendors are located in China, and the frequent and long-term exposures to the supply chain disruptions in that country have led a number of them to request salary increases or benefits changes.
These disputes have been ongoing, with some major supplier strikes happening in the past few months. A new round of negotiations started last week, which will likely result in some kind of agreement, but it’s unclear when the production shutdowns will end or if they will be extended.
How to stop the production shutdowns
If the disputes are resolved and the production lines return to normal, Apple could resume production and the company could report better-than-expected earnings. However, doing so without resolving the underlying issues could have serious effects on Apple’s reputation and future growth.
The most obvious solution would be to reach an agreement with the suppliers. However, that would be difficult, given the significant power imbalance between the parties.
The most likely solution is for the company to obtain court-enforceable guarantees that the parties will resolve their issues and return to work.
Unfortunately, that also means the production lines will have to return to work, which will have a significant and lasting effect on the lives of all involved, including the suppliers, employees, and management.
When will the production shutdowns end?
The closure of the main Apple factories in these cities is expected to end around the middle of next year, after which time the company will shift its focus to expanding its existing production lines.
It’s worth noting that these are just the major facilities that have been affected, and there are still dozens of smaller Apple subcontractors who also make products for the company.
These smaller companies have been unable to produce because of the long production stoppages, and their inability to produce has led to the loss of thousands of jobs.
Which factories are affected?
All three of the main Apple factories in Shanghai, as well as the electronics plant where the 3D printed product is manufactured, are affected by the production shutdowns.
The same can be said for the other two principal Apple suppliers in China’s Zhejiang Province: Wistron, which makes computer and electronic components, and wafer rectifier, which is responsible for the solid-state Diode.
The main facilities of these companies are in Wuhan, Hubei province, and the Dongguan city of the southern Guangdong province.
How to contact Apple suppliers
If you’re a supplier and want to get in touch with Apple, you can find the company’s contact information on its supplier website.
You can also email Apple at [email protected], or write to Apple Inc. at One Infinite Loop, Cupertino, CA 95158.
What will be the result of the production shutdowns?
The impact of the production shutdowns is likely to be felt for a long time. The disruption to the supply chain has been significant enough to keep all three main Apple factories in Shanghai, as well as the electronics plant, from production for several months.
Beyond that, there are numerous smaller suppliers who make parts for the Apple products. The impact of these suppliers will be felt for a shorter period of time because they’re more focused on short-term profits rather than the long-term health of their companies.
How to improve the quality of life in China’s manufacturing industry
The impact of the production shutdowns on the quality of life in China’s manufacturing industry has been significant. It will take some time for the industry to get back to normal, and it’s likely that the impact on the supply chain will continue to be felt for some time.
Fortunately, there are a number of measures that manufacturers can take to improve the quality of life for their employees and reduce exposure to the risk of exposure to unhealthy working conditions.
The most obvious one is for manufacturers to improve their working conditions. However, improved working conditions don’t always mean more pay or benefits, so some manufacturers have taken the approach of dangling pay increases and benefits in front of employees in an effort to get them to take a risk and join a union.
This is not only poor form, it’s illegal. The company has to give employees a reason to join a union, and there must be a clear and equal distribution of pay and benefits across all employees. This is not happening in China, and it’s not something that needs to be addressed soon.
The recent production shutdowns in Shanghai, China’s largest city and an important manufacturing hub, have had a significant effect on the supply chain, affecting all major manufacturers in the region. The impact of the production shutdowns will likely be felt for a long time, as the companies that make products for Apple have been particularly hit by the disruption.
In the short term, the impact of the production shutdowns on the supply chain and the quality of life in the city of Shanghai will be significant. In the long term, however, the impact on the manufacturing industry in China will be even more significant.