Business is BOOMING!
Apple announced on Wednesday that the company plans to contribute more than $350 billion to the U.S. economy over the next five years by creating more jobs and investing more domestically, building upon what it calls its “commitment to support the American economy and its workforce” due to the new tax reform bill.
The promise to “invest in advanced manufacturing in the United States” comes less than a year after Apple promised to dedicate resources to American job creation with a $1 billion fund to expand its domestic manufacturing footprint, interpreted by many as a response to President Donald Trump’s call for U.S. companies to hire more American workers and bring back jobs from overseas.
At the time of the May 2017 announcement, Apple CEO Tim Cook told CNBC that “those manufacturing jobs create more jobs around them because you have a service industry that builds up around them.”
It now says it’ll boost the size of that Advanced Manufacturing Fund to $5 billion.
Apple appears to be putting its money where its mouth is. In a press release, the company also said:
- It plans to create more than 20,000 new jobs through hiring at existing campuses and opening a new one. Apple already employs 84,000 people in all 50 states.
- The new positions will be added to what the company says is the more than 2 million jobs Apple is “already responsible for creating and supporting” across the United States.
- The company plans to establish an Apple campus in a new location, which will first house technical support for customers. It will announce the location of the new campus later in the year.
- Its planned investment will be “concentrated in three areas where Apple has had the greatest impact on job creation: direct employment by Apple, spending and investment with Apple’s domestic suppliers and manufacturers, and fueling the fast-growing app economy which Apple created with iPhone and the App Store.
- More than $10 billion of its expanded capital expenditures will be investments in data centers across the U.S. Over the last decade, Apple has invested billions of dollars in data centers and co-located facilities in seven U.S. states, including North Carolina, Oregon, Nevada, Arizona, and a recently announced project in Iowa.
- Apple is breaking ground Wednesday on a new facility in downtown Reno, which will support its existing Nevada facilities.
- The $350 billion contribution to the economy will come from what it calls its “current pace of spending with domestic suppliers and manufacturers” — an estimated $55 billion for 2018. And that $350 billion, says Apple, does not even include its “ongoing tax payments, the tax revenues generated from employees’ wages and the sale of Apple products.
- Its planned capital expenditures in the U.S., along with investments in American manufacturing over five years and “a record tax payment upon repatriation of overseas profits, will account for approximately $75 billion of Apple’s direct contribution.”