Motorola moves to bring production (and jobs) to Texas

Posted by scapozzola on 05/30/2013

Motorola has announced plans to manufacture its new smartphone, the Moto X, in Texas.

The company's move to bring production back to the U.S. has made headlines, with the Washington Post's Craig Timberg pondering whether the effort is "motivated less by long-term manufacturing needs than by public relations strategy."  Timberg adds that there are "few better ways to acquire allies on Capitol Hill than to create manufacturing jobs in lawmakers’ home districts."

However, Motorola says the move is helpful because of the proximity of "having a factory close to the engineers who are designing a new flagship smartphone and the customers they hope will buy it."

Timberg quotes Alliance for American Manufacturing (AAM) President Scott Paul on the significance of such a reshoring move:

“You would have said five years ago this would have been impossible,” said Scott N. Paul, president of the Alliance for American Manufacturing. “It’s interesting that you’re seeing this getting started now. It’s possible this could be part of a larger trend.”

In a subsequent statement, Paul commented:

Motorola and Google wouldn’t be opening a large new smartphone factory in Texas if they didn’t think they could turn a profit. The announcement is fresh evidence that investing in American manufacturing makes smart business sense. Still, this is hardly a trend. But, the fact that Apple, Lenovo, Google, and Motorola are all making significant investments in manufacturing means that offshoring is no longer the only option. I also think this announcement shows the power of “Made in America.” There is no hotter slogan on the market today.

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