The Short Stack 🥞 Vol #20
First emailed to newsletter subscribers on May 06, 2017
Good Morning All ✌️
Happy “Cinco de Derby” Weekend.
Wow, we made it to volume #20! And this week we cracked 2K subscribers to the Short Stack for the first time. I’m humbled. Welcome to all of our new subscribers, and thanks to everyone for your continued support.
This week’s Short Stack brings a rant I wrote on Apple’s $1B Advanced Manufacturing job creation fund. The future of work is near and dear to our hearts at Jakt, and Apple’s announcement is exciting to us on many levels. Additionally, check out Episode #18 of our YouTube series below.
PS — The answer is YAS. This email is late because like, all of the tequila.
☝️ These are things we’ve been thinking about this week.
Along with its quarterly earnings report this week, Apple announced that it started a $1B fund to invest in advanced manufacturing jobs in the US. We’re excited to see which company Apple invests in first (to be announced later this month), and we find this news encouraging for our economy at large for two reasons:
First, building stuff plays a significant role in our economic growth and job creation.Deloitte estimates that every $1.00 spent on manufacturing adds $1.37 to the US economy, and every 100 jobs create 250 positions in other industries. By investing in startups, which historically create more jobs than larger corporations, companies like Apple and GE can deliver technology-driven production jobs in geographies where making things accounts for most of the US economy and has since the mid-1700s. The “Internet of Things” (IoT) — which fuses the digital and physical world by making everyday devices like coffee makers and stoplights “smart” (Internet enabled) — is alone forecast to add ~$11 Trillion in economic impact by 2025. Large US companies have saved cash in recent years, spending it on share buybacks and dividends rather than deploying it on capital projects or M&A. However, new opportunities are emerging, and Apple’s strategy in advanced manufacturing seems win-win for shareholders and the US economy.
Second, the story regarding technology’s impact on work needs to change. It’s a common fear in Middle America that software only destroys jobs and doesn’t create them; understandable given the narrative up until this point hasn’t been all-inclusivenor emphasized equal opportunity. On aggregate, the Internet has created more jobs globally than destroyed. But it hasn’t lifted Middle America the way it has India and Asia. Apple has the power to shift the conversation toward forward-thinking ideas like advanced manufacturing, and away from dangerous economic solutions like reinvesting in coal. The current administration clearly misunderstands or fails to acknowledge the catastrophic, harmful long-term effects that fatuous, “basic” ideas like reopening coal plants would have on the very people it aims to serve.
The largest challenge as we see it will be awareness and education. For Apple’s job creation plan to succeed, young workers need to feel like manufacturing is exciting. And older job seekers need to be reeducated with the technical skillset to succeed. Make no mistake; we are in the midst of a technological revolution. Advanced manufacturing jobs require an entirely different skillset than the old ones — AI, robotics and more. A $1B fund is not a quick fix, nor the ultimate solution. But it’s a start and we believe the opportunities are plentiful.
Technology, Jobs and the Future of Work
Making Movies 🎬
Episode 018, by our CEO Anthony Tumbiolo.
In this episode:
- Internal meeting on 1Q results
- When you’re not feeling so hot
- The power of persistence
- Spec work
- Weekly KPI scorecard review
1. On the blog: Developing Focus + Consistency — 119 Days In
by Michael Saloio, our COO
2. On the blog: Jakt 1Q17 Financial Results
by Michael Saloio, our COO