Apple wasn’t always the 3.75 trillion-dollar company it is today. The company was close to bankruptcy in 1997, before Steve Jobs returned to launch newly designed and eye-catching products – like the first multi-coloured iMac range, the iPod and then the iPhone – and put the company on the journey to become the modern corporate phenomenon that it is today.
In today’s globalised economy, Apple could now be said to be the quintessential example of a company that designs its products in the United States while manufacturing them in China and across Asia.
Apple is not, of course, unique in this approach. Many other companies have been doing this for a long time. Such companies used to be called “multinationals” before the internet made the term almost redundant.
This model of “design in the West, manufacture in the East” has become a hallmark of many industries, probably most notably in the apparel industry.
Moreover, it offers a compelling lens through which to examine how Europe and America might strengthen their positions in global manufacturing.
The shift of manufacturing to Asia
The last few decades have seen a dramatic shift in global manufacturing towards Asia, with China at the forefront. Once known for low-cost, labor-intensive manufacturing, China has now become the world’s manufacturing powerhouse.
A look at global manufacturing output over the years reveals a stark reality: China’s manufacturing sector overtook the United States in terms of output around 2010, and its lead has only grown since.
This shift is driven by several factors, including lower labor costs, government incentives, and an increasingly skilled workforce. Asia’s dominance is also fueled by robust supply chains, advanced infrastructure, and the capacity to scale operations rapidly.
Advantages the US holds in manufacturing
Despite this, the United States retains significant advantages in certain areas of manufacturing. Advanced technologies such as robotics, automation, and AI have created opportunities for high-tech manufacturing that emphasizes quality over quantity.
Moreover, the US leads in innovation, with Silicon Valley as a global hub for cutting-edge research and development. Additionally, access to abundant natural resources and a strong emphasis on intellectual property protection further bolster the US as a competitive manufacturing player.
3D printing and additive manufacturing
An emerging area that showcases the US’ manufacturing potential is 3D printing, also known as additive manufacturing. Invented in the 1980s by Chuck Hull, of 3D Systems in the United States, 3D printing involves creating objects layer by layer using materials such as plastics, metals, and ceramics.
This technology has revolutionized prototyping, allowing designers and engineers to create and test models quickly and cost-effectively. Beyond prototyping, additive manufacturing is increasingly being used to produce finished goods, from aerospace components to medical implants.
The benefits of 3D printing include reduced waste, faster production times, and the ability to create highly customized products. Its potential to decentralise manufacturing – allowing for on-demand production close to the end user – could also help Europe and America regain a competitive edge in certain industries.
By combining advanced design capabilities with this transformative manufacturing technique, Western companies can innovate in ways that were previously unimaginable.
Europe and America: Leveraging art and design
Could Europe and America leverage art and design to compete with Asia? Apple’s success suggests that the answer is yes. The company’s iconic designs resonate deeply with consumers, creating an emotional bond that fosters brand loyalty. This principle extends beyond Apple.
Companies like BMW and Mercedes-Benz exemplify how design differentiation can preserve market share even in the face of stiff competition from Japanese automakers.
These European brands emphasize not just aesthetics but also functionality, heritage, and innovation, which together form a compelling value proposition.
In the broader context, design plays a crucial role in creating products that are not only visually appealing but also user-centric. This is where Europe and America excel, thanks to rich cultural histories and strong traditions in art and design education.
By focusing on high-quality design and contracting manufacturing to Asian partners, Western companies can continue to deliver unique value to global markets.
Design sensibilities across cultures
Art and design sensibilities vary significantly across cultures, influenced by history, tradition, and societal priorities. For instance:
Germany: Known for precision and functionality, German design often emphasises engineering excellence and minimalism. The Bauhaus movement, which originated in Germany, reflects the ethos of “form follows function”, which can sometimes lead to products that look less easy on the eye than they are to use – like, for example, BMW cars. I mean, the grille is quite large really.
United States: American design tends to prioritise mass appeal, innovation, and bold aesthetics. The focus is often on creating a strong brand identity, as seen in companies like Apple and Tesla. However, sometimes things can go wrong when it gets almost religious about following fashion and social trends.
China: Traditional Chinese design values harmony and balance, drawing inspiration from nature. Modern Chinese design is increasingly blending traditional elements with cutting-edge technology to cater to global markets. However, its tendency to use images of flowers (like in the main image), birds and so on in its designs, while appealing to tastes in Asia, may not translate so well abroad.
Japan: Japanese design is renowned for its simplicity, elegance, and attention to detail. Concepts like “wabi-sabi“ (the beauty of imperfection) influence everything from architecture to consumer products. But to a western observer (such as myself) Japanese design can sometimes come across as deliberately avoiding being “too perfect”, which seems unnecessary and a missed opportunity.
Italy: Italian design stands out for its artistry and flair. From luxury cars to fashion, Italian creations often evoke a sense of sophistication and style. For me, one of the best designs to have come out of an Italian design house was the concept car for Jaguar that Bertone produced. Shame Jaguar didn’t seem to have followed through with that one.
Scandinavia: Scandinavian design emphasises minimalism, sustainability, and functionality. It is characterised by clean lines, neutral colours, and an emphasis on comfort and practicality. The affordable, well-designed furniture of Ikea may readily come to mind here, but readers of this website may also think of Einride, the maker of that “futuristic” autonomous truck.
Understanding these cultural distinctions allows companies to tailor their products to different markets, enhancing their global appeal. By leveraging the unique strengths of each region’s design heritage, companies can create products that resonate deeply with diverse audiences.
The ‘division of labor’ model
Apple is far from alone in its reliance on this “division of labor“ model. Many tech giants, such as Microsoft and Google, design their hardware products in the West while outsourcing manufacturing to Asian countries.
Similarly, fashion brands like Nike and Adidas design in Europe or the US and manufacture in Asia. The rationale behind this model lies in several factors:
Cultural insights: Western designers may have a better understanding of Western tastes and consumer behaviors.
Cost efficiency: Manufacturing in Asia remains more cost-effective, even as wages rise in countries like China.
Specialisation: Asian manufacturers have developed unparalleled expertise in mass production and supply chain management.
Industrial design vs product design vs consumer design
It is essential to distinguish between different types of design. Industrial design focuses on the overall functionality and manufacturability of a product.
Product design zooms in on specific aspects, such as usability and aesthetics, while consumer design addresses market-specific preferences and trends.
Together, these disciplines form a holistic approach to creating products that delight users while remaining practical to manufacture.
Design for manufacturing
A key element of success in this “design in the West, manufacture in the East” paradigm is design for manufacturing (DFM). This approach ensures that products are conceived with the manufacturing process in mind, reducing costs, minimizing errors, and speeding up production.
Western companies must collaborate closely with their Asian manufacturing partners to align design with production capabilities, creating a seamless pipeline from concept to consumer.
The future: Collaboration and differentiation
Europe and America face a choice: compete head-on with Asia in manufacturing or carve out a niche by focusing on what they do best. The latter seems the more viable path.
By emphasizing art, design, and innovation, Western companies can continue to lead in creating products that captivate and inspire. Meanwhile, leveraging Asia’s manufacturing prowess allows for cost-effective production on a massive scale.
The interplay between design and manufacturing is not merely a division of labor; it is a symbiotic relationship. Companies that master this balance – understanding consumer needs, creating exceptional designs, and manufacturing efficiently – will thrive in the global marketplace.
Whether through consumer electronics, automobiles, or even fashion, the “Apple model” shows us how to bridge the gap between what some might consider “art” – or at least a high level of design excellence – and industry, East and West, and innovation and tradition.
