Lenovo to begin making some ThinkPads in the USA

[yak]

Lenovo is opening up a plant in North Carolina to manufacture a portion of its ThinkPad and ThinkCentre laptops, desktops, and tablets.

http://www.theverge.com/2012/10/2/34435 ... in-the-usa

[ajkula66]

My guess is that they'll just expand the custom shop that they've had in NC for years...in hopes of luring back some of the former IBM clients such as US government... ...but this is just a shot in the dark on my end.

[Radioguy]

...in hopes of luring back some of the former IBM clients such as US government.

Considering the nature of Lenovo, and where its corporate control is based, isn't it true to say that the reason the US government jumped ship would still exist even if the entire machine were built here?

[ajkula66]

Considering the nature of Lenovo, and where its corporate control is based, isn't it true to say that the reason the US government jumped ship would still exist even if the entire machine were built here?

Well, times change, as do governments...but don't kid yourself: government was getting some of these U.S. built machines after the transition...

[Latios]

It does indeed seem like an odd move for where Lenovo is based, though they did have a somewhat noticeable presence in the US. Maybe it's like the Japan announcement to line up with the 20th birthday coming up in two days. Some good publicity.
How about a plant in Australia too

[ThinkRob]

It does indeed seem like an odd move for where Lenovo is based, though they did have a somewhat noticeable presence in the US. Maybe it's like the Japan announcement to line up with the 20th birthday coming up in two days.

They still do have a presence in the US -- and a big one at that (about 10% of their global workforce, IIRC).

[BillMorrow]

An interesting article in tuesdays WSJ (Wall Street Journal)

http://online.wsj.com/article/SB1000087 ... 99174.html#

By JURO OSAWA

Chinese computer-maker Lenovo Group Ltd. will start manufacturing PCs in North Carolina next year. Company executives said the effort, starting with only a few million dollars and just over 100 workers, will be the beginning of something bigger, rather than a one-time made-in-America publicity effort.

The world's No. 2 personal-computer maker says the PC production line now being built at a facility in Whitsett, N.C., will allow the company to become more responsive to U.S. corporate clients' demand for flexible supplies and product customization. Although the cost of U.S. production will be higher compared with overseas production, an added benefit will be to raise Lenovo's profile in the U.S., where it ranks fourth in market share by shipment.

"Us having a [production] facility here in a home country is a differentiator that people will value," said Lenovo North America President David Schmoock. He said the incentive for the move is similar to companies taking steps to become more environmentally sustainable. "Being green is not necessarily the lowest-cost option for a lot of companies, but you do it because your customers and partners value you being green."

While the investment is tiny for Lenovo, whose revenue was nearly $30 billion in the most recent fiscal year, it is a symbolic move for the company that rose to international prominence when it bought the PC business of International Business Machines Corp. in 2005. And with its new production line in North Carolina, Lenovo will stand apart from its U.S. rivals—No. 1 PC maker Hewlett-Packard Co., Dell Inc. and Apple Inc.—which no longer make personal computers in the U.S.

Lenovo executives said the new production line isn't a temporary publicity stunt. "I believe this is the first of many steps to increase our production capability," Mr. Schmoock said. "I'm very, very bullish about what I can get out of this facility."

Gerry Smith, Lenovo's head of global supply chain, said the decision to set up a production site in the U.S. is in line with the company's broader strategy of localizing its production in major markets as much as possible.

"Now we are big enough in the U.S. to justify this move," he said.

The move also comes as political rhetoric against Chinese companies heats up in the U.S. Last week, President Barack Obama prevented a company owned by two Chinese nationals from acquiring four wind-farm projects in Oregon, saying that those sites are all within or near restricted airspace. Mitt Romney, Mr. Obama's Republican rival in November's presidential election, also has taken a harsh tone against China.

Critics of China have focused on national security, industrial spying and job losses. Chinese telecommunications suppliers Huawei Technologies Co. and ZTE Corp. are being investigated by the U.S. House of Representatives Intelligence Committee over whether their gear could be used to spy on the U.S.

Mr. Schmoock said the decision to introduce a production line in the U.S. isn't a response to the political climate. Lenovo's customers already know that Lenovo is a "truly global" company, he said. "I don't think there's any negative perception we have to overcome."

Lenovo manufactures close to half of the computers it sells, far more than its U.S. rivals. Currently, the PCs that Lenovo sells in the U.S. are produced at the company's Mexican or Chinese factories.

Despite owning the well-regarded ThinkPad brand and having a solid presence in the U.S. market for PCs used in offices and schools, Lenovo has yet to become a major brand for general consumers in the U.S. Its global market share in PCs is about 15% but its U.S. market share is 8%, running fourth behind Hewlett-Packard, Dell and Apple, according to research firm IDC.

The new production line will be located near the company's U.S. headquarters outside of Raleigh, N.C. Unemployment in the area has remained stubbornly high, with the jobless rate in the county at 10% compared with the national rate of 8.1%. The factory isn't far from the site of the last Dell PC factory in the U.S., which closed in 2010.
—Ben Worthen contributed to this article.

[Puppy]

http://blog.lenovo.com/news/new-lenovo- ... nce-in-usa

[Radioguy]

It seems even more clear that these are likely all to be CTO's. Will there be an "Assembled in the USA" label, or are they within their rights to label them as "Made in the USA"?

[AGoodSolution]

My guess is that they'll just expand the custom shop that they've had in NC for years...in hopes of luring back some of the former IBM clients such as US government... ...but this is just a shot in the dark on my end.

That was the big deal when the announcement of a Chinese company acquiring a major supplier of government systems. It was around the same time of the "Saudi coastal port security scandal" and the sec community was raising fear the Chinese would embed zero day, ASIC based spy ware into computers headed for US Govt agency service.

Of course, everyone forgot the fact that by then a lot of ThinkPad's and ThinkCentre's were already being assembled in China by Chinese sourced components assembled by Chinese suppliers and prior, those systems were being assembled in Japan ( I love my Japanese T41's and T30's ).

Eventually, Fed agencies will vomit from their Dell's and HP's and buy more ThinkPad's even if they're being assembled in Russia and Vietnam.

[ThinkRob]

It seems even more clear that these are likely all to be CTO's. Will there be an "Assembled in the USA" label, or are they within their rights to label them as "Made in the USA"?

I would guess "Assembled in USA of USA and non-USA components". The requirements are both tricky and somewhat fungible, but I believe that in order for it to be "Made in USA", the product would have to have the majority of its value come from components and/or production steps of US origin; see here for more details and examples.

[pianowizard]

Eventually, Fed agencies will vomit from their Dell's and HP's

Do you know what Dell and HP laptops Fed agencies are using? The high-end models by both brands (i.e. the Precisions and Elitebooks) are about as good as the best Thinkpads, so you seem to know that Fed agencies aren't using these top models.

[ajkula66]

Of course, everyone forgot the fact that by then a lot of ThinkPad's and ThinkCentre's were already being assembled in China by Chinese sourced components assembled by Chinese suppliers and prior, those systems were being assembled in Japan ( I love my Japanese T41's and T30's ).

Where exactly have you obtained these Japanese-made units?

Every single T30 I've ever seen was built in U.S. or Mexico.

As for the T41, it was Mexico and China.

Eventually, Fed agencies will vomit from their Dell's and HP's and buy more ThinkPad's even if they're being assembled in Russia and Vietnam.

Hate to tell you, but most of the laptops currently in use by these agencies is built in Japan by a very small and not-so-well-known company....its name is Panasonic...

[Radioguy]

Toughbooks are getting some competition from Dell's rugged models, though. You only have to watch Homeland to see that Latitude XFR's and ThinkPads are all the CIA uses.

[ajkula66]

Toughbooks are getting some competition from Dell's rugged models, though. You only have to watch Homeland to see that Latitude XFR's and ThinkPads are all the CIA uses.

Don't believe everything you see on TV...advertising industry has many faces...

Military's been smacking ToughBooks for quite a few years now...even before they dropped ThinkPads...

[Cigarguy]

Don't believe everything you see on TV...advertising industry has many faces...

Military's been smacking ToughBooks for quite a few years now...even before they dropped ThinkPads...

I agree, product placement in movies and TV is based more on revenue than accuracy. For a corporation as large as the US government I doubt if there's any one to two vendors that they source from.

[Radioguy]

Um...anyhow.
(Admin note: This comment refers to a personal attack made by AGoodSolution which has been pulled from public view. Also noted is that Mr. Solution has now been deactivated, apparently by his request.)

Don't believe everything you see on TV...advertising industry has many faces...

Military's been smacking ToughBooks for quite a few years now...even before they dropped ThinkPads...

I agree, product placement in movies and TV is based more on revenue than accuracy. For a corporation as large as the US government I doubt if there's any one to two vendors that they source from.

This was why I added the smilie (which is why I will again!).

It's not as if I've not seen those Latitudes in cop cars or anything myself, but Dell is certainly attempting to undercut Panasonic with these models.

[jdk]

At the DC Science and Engineering Festival this April, I noticed most government agencies were using Elitebooks and Toughbooks at their booths. This seems to fall in line with the trend I'm seeing in the military. Academia were almost all using MacBook Pros. There were a couple of Thinkpads as well, all T30-era and older.

There was a dark metallic grey Elitebook, maybe 17", that had a red-ish Trackpoint in the middle, that I originally confused for a Thinkpad. I've only seen it that one time.

As for the new assembly plant, that's great news for the Triad area, and especially eastern Guilford county. A few years back they were promised an American Express DataCenter at the same location that never happened (actually, AmEx pulled out of town completely leaving over 1000 people jobless). There is also a government-subsidized Dell facility on the other side of town, no more than 5 years old, that was abandoned two years ago (again, leaving several hundred people jobless).