Apple unveils plans to increase manufacturing in the United States with new Cupertino campus
Technology giant Apple plans to shift some of its manufacturing processes away from China and back domestically to the United States, according to Bloomberg Businessweek. Part of its efforts to do so include the construction of a new campus in Cupertino, California. The number of jobs that will be directly created as a result of the aforementioned decisions - coupled with the numerous positive externalities that will spring up from Apple's increased presence in the region - could lead to a raft of young American workers and families moving to the Bay Area region. As a result, demand for the homes for sale in the Bay Area is likely to increase in the near future.
According to The New York Times, Apple, the largest public company in the world by market value, shifted much of its manufacturing processes to Asia in the late 1990s. Facing rampant criticism for outsourcing jobs abroad from opponents such as industry advocates and government economic advisors, Apple is now shifting some of its priorities toward domestic manufacturing and production. The news source reports that the company plans to spend $100 million on American manufacturing in 2013. While this represents a small fraction of its overall factory investments - and an even more miniscule proportion of the company's available cash - the commitment does signify a subtle shift in Apple's business operations.
"Next year we're going to bring some production to the U.S.," Apple Chief Executive Officer Tim Cook told Bloomberg Businessweek. "This doesn't mean that Apple will do it ourselves, but we'll be working with people and we'll be investing our money. I don't think we have a responsibility to create a certain kind of job. But I think we do have a responsibility to create jobs.
The shift in manufacturing location is tied to the company's plans for a new campus in Cupertino, California, according to CNN. The Cupertino campus, when completed in 2015, will cover 2.8 million square feet and can house up to 13,000 people on a daily basis. Additionally, the roof of the four-story building will be covered in solar panels, allowing the company to essentially have its own on-site power plant. Officials and residents in Cupertino, which has a population of approximately 58,000 people, had voiced concerns on traffic and environmental impact. However, Apple has assuaged those concerns with its commitment to environmentally friendly projects, as well as assurances on the positive economic impacts for the entire Bay Area region. A significant number of jobs will be created by the twin efforts of shifting manufacturing and constructing the elaborate new campus, likely continuing the hot rebound of the Bay Area real estate market.
The region - already considered one of the strongest and most popular property markets in the country - features a number of cities with beautiful, affordable homes and a high quality of life. One of these cities is Mountain View, which recently ranked 10th on CNN's list of best places for wealthy single individuals to move to. According to the news source, the city - with a median family income of $109,129 - is an increasingly popular place for the tech-savvy residents who work at the numerous high-tech companies in the area. Among these companies include Google, LinkedIn and Apple. Apple's recent high-profile decisions and projects could portend positive developments for the real estate market in Mountain View and other Bay Area cities.