• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
TechBlue Ribbon Companies

Will Tech Titans, Pressured By Trump, Create More U.S. Factory Jobs?

Barb Darrow
By
Barb Darrow
Barb Darrow
Down Arrow Button Icon
January 3, 2017, 4:01 PM ET
Operations Inside A Nissan Motor Co. Facility Ahead Of Durable Goods Orders
Workers assemble the under carriage of vehicles at the Nissan Motor Co. North America manufacturing plant in Canton, Mississippi, U.S., on Thursday, Sept. 8, 2016. The U.S. Census Bureau is scheduled to release durable goods figures on September 28. Photographer: Daniel Acker/Bloomberg via Getty ImagesDaniel Acker — Bloomberg via Getty Images

A surprise move by Ford on Tuesday to kill a planned $1.6 billion auto plant in Mexico and move that work instead to Michigan may be a sign that business leaders have listened to President-elect Donald Trump, who has blasted U.S. companies for shipping jobs overseas. A big question is whether tech giants like Apple, IBM and Microsoft, all of whom rely heavily on foreign manufacturers, will follow Ford’s (F) lead.

To be fair, while Trump tends to take credit for saving all these jobs—he had threatened Ford with a 35% tariff on Mexican-built vehicles sold in the U.S.— Ford chief executive Mark Fields told CNN that the company “didn’t cut a deal with Trump. We did it for our business.”

Whether you believe Ford’s move was due to Trump himself, or to a growing belief among voters that the country needs to maintain its own manufacturing capabilities, or that it just makes financial sense, as Fields argued, it is noteworthy.

Last month, telecommunications company Sprint and satellite provider OneWeb announced plans to hire 5,000 U.S. workers. Although Trump claimed credit for those jobs, they were, in fact, part of a planned $50 billion U.S. investment by SoftBank Group founder Masayoshi Son before Trump’s election victory. SoftBank owns stakes in both Sprint and OneWeb.

About 3,000 of those jobs would be at a new Florida factory where OneWeb says it will build low-cost satellites.

It was unclear how many of the other jobs would be in manufacturing, but the fact that two tech companies committed so publicly to investing in American workers was noteworthy. And it was also great public relations since SoftBank also wants to revive a Sprint (S) merger with T-Mobile (TMUS)that was proposed in 2014 but dropped in the face of U.S. regulatory resistance. SoftBank/Sprint might have better luck getting approval of the deal in a Trump administration.

Apple, criticized by Trump in the past for its outsourced manufacturing, is a bellwether for tech stalwarts. Apple (AAPL) has talked with Foxconn and Pegatron, two Asian contract manufacturers that build iPhones, to move some of their work stateside, according to unconfirmed reports.

Furthermore, Apple CEO Tim Cook, along with his Microsoft and IBM counterparts Satya Nadella and Ginni Rometty respectively, attended Trump’s tech summit in New York last month. Creating U.S. jobs was one hot topic of the event.

In an emailed statement, an Apple spokesman said the company:

is responsible for creating more than two million jobs across the United States, from engineers, retail and call center employees to operations and delivery drivers. We work with over 8,000 suppliers from coast to coast and are investing heavily in American jobs and innovation.

Get Data Sheet, Fortune’s technology newsletter.

In a blog posted the day after the election, Microsoft president Brad Smith pointed out the need for more highly educated workers. He cited research showing that the U.S. economy added 35 million jobs over the last 25 years, but that the number of jobs held by those without a high school diploma fell 13% to 7.3 million while jobs for those with four-year degrees doubled.

He stressed the need for private-public sector collaboration to boost jobs and innovation in the U.S. and elsewhere. But Smith made no mention of whether the company Microsoft would start making its Surface tablets in the U.S. or push its Asian manufacturing partners to open facilities here.

For more on Ford’s factory move, watch:

IBM’s Rometty, likewise, stated a need for companies to work with the U.S. government to improve the climate for job creation. In an open letter to Trump in November, she spoke about a need to train people for skilled jobs that don’t require two- or four-year college degrees.

But again, there was little in the way of specifics and no mention of moving any services or manufacturing work to the U.S. from elsewhere.

Fortune contacted Microsoft (MSFT) for comment about its U.S. job plans and will update this article as needed. An IBM spokesman responded to reiterate the company’s plan, announced last month to add 25,000 U.S. jobs over the next four years.

Toni Sacconaghi, senior research analyst with Bernstein Research said he hasn’t heard much from tech players about bringing jobs—manufacturing or otherwise—to the U.S. from abroad. And, Rometty’s plans, as spelled out in her letter, are “tough to interpret,” he said in an email.

He cited IBM’s employee turnover as one complicating factor. Because IBM has 80,000 to 90,000 U.S. employees, and if annual turnover is hypothetically 10%, IBM would need to hire 8,000 to 9,000 people to replace those departing workers. That replacement number alone would surpass the 25,000 jobs mentioned.

IBM responded that it expects employee headcount will be higher in 2020 than now, but it did not provide further details.

Thus far, SoftBank affiliates Sprint and OneWeb seem to be the only tech companies that have promised specific action on the domestic jobs front in the near term. The rest of the tech community has remained silent, at least publicly, about bringing manufacturing jobs back to the U.S.

But then again, it’s early.

One thing is certain, says Jeff Matthews, managing partner for RAM Partners, a Naples, Florida-based hedge fund, via email: “Every company I talk to is thinking about how to do more in America. I’m not sure that they will, but it is now something that’s on everybody’s radar, which can’t hurt.”

Jan. 4, 2017 (3 pm): This story was updated to add IBM’s response and to add more context from Bernstein Research analyst Toni Sacconaghi.

Jan. 5, 2017 (4 p.m.) This story was updated to add more details about IBM’s hiring plans.

About the Author
Barb Darrow
By Barb Darrow
See full bioRight Arrow Button Icon

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Fortune Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • CEO Initiative
  • Conferences
  • Personal Finance
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map

© 2025 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.


Latest in Tech

AISocial Media
This 22-year-old college dropout is making $700,000 a year from ‘AI slop’ videos that people sleep through
By Eva RoytburgDecember 30, 2025
1 hour ago
Mark Zuckerberg smiles in a black and white suit
AIMeta
Mark Zuckerberg’s Meta is dropping over $2 billion for an AI startup—a rare example of a U.S. tech giant buying a platform founded in China
By Dave SmithDecember 30, 2025
2 hours ago
TV
CommentaryMedia
Television is a state of mind: why user experience will define the next era of media
By Lin CherryDecember 30, 2025
3 hours ago
Warren Buffett and the Geico gecko.
InvestingWarren Buffett
A vicious cycle beats a virtuous one: How Warren Buffett’s Geico fell behind Progressive in the auto insurance race
By Adam SeesselDecember 30, 2025
4 hours ago
India
CommentaryIndia
AI adoption at scale is hard. Just look at India, which processes about 20 billion transactions every month 
By Shankar Maruwada and Angela ChitkaraDecember 30, 2025
5 hours ago
AsiaSemiconductors
Why Singapore is the only Southeast Asian country in Pax Silica, the U.S.’s new AI ‘inner circle’
By Angelica AngDecember 30, 2025
9 hours ago

Most Popular

placeholder alt text
Success
Gen Z could wave goodbye to résumés because most companies have turned to skills-based recruitment—and find it more effective, research shows
By Orianna Rosa RoyleDecember 29, 2025
1 day ago
placeholder alt text
Arts & Entertainment
Gen Zers and millennials flock to so-called analog islands 'because so little of their life feels tangible'
By Michael Liedtke and The Associated PressDecember 28, 2025
2 days ago
placeholder alt text
Success
MacKenzie Scott's close relationship with Toni Morrison long before Amazon put her on the path give more than $1 billion to HBCUs
By Sasha RogelbergDecember 28, 2025
2 days ago
placeholder alt text
Future of Work
Malcolm Gladwell tells young people if they want a STEM degree, 'don’t go to Harvard.' You may end up at the bottom of your class and drop out
By Sasha RogelbergDecember 27, 2025
3 days ago
placeholder alt text
AI
'Godfather of AI' Geoffrey Hinton predicts 2026 will see the technology get even better and gain the ability to 'replace many other jobs'
By Jason MaDecember 28, 2025
2 days ago
placeholder alt text
Banking
Former Russian banking billionaire says an Instagram post cost him $9 billion: His company was sold for 3% of its value in 'hostage' situation
By Nick LichtenbergDecember 29, 2025
24 hours ago