Apple Inc. (NASDAQ:AAPL) SVP of Operations Jeff Williams recently attended a meeting with President Obama following the adoption of the White House?s ?SupplierPay? initiative. The SupplierPay program is an agreement between companies like Apple, Nissan, Rolls Royce and others to pay small business suppliers faster so that they can reinvest funds into growth.
SupplierPay spun out of QuickPay, which requires federal agencies to pay small businesses within 15 days. SupplierPay applies this to the private sector where manufacturers pay cash quicker to suppliers and investment companies will help them get lower-cost capital.
In a case study, The White House highlighted Metal Impact, which is a company that mills aluminum for the Mac Pro cylindrical enclosure.
?Last year, Apple spent more than $3 billion with over 7,000 suppliers running small and diverse businesses, creating tens of thousands of U.S. jobs,? said Apple in a statement. ?We are proud to be making Mac Pro in Austin, Texas, partnering with dozens of component and equipment suppliers from 23 states. The first thing customers notice when they look at a Mac Pro is the revolutionary cylindrical aluminum enclosure which comes from Metal Impact, a small company in Elk Grove Village, Illinois.?
Metal Impact was primarily working with auto companies before it came to them about the Mac Pro. ?Alongside their team we created an entirely new process and supply chain, conducting more than 40 experiments with ten different alloys on multiple aluminum mills,? added Apple. Work on the Mac Pro created 18 new jobs at Metal Impact and generated millions in revenue for the company. Metal Impact said that Apple tripled their business.
Some of the 7,000 suppliers may be outsourcing manufacturing processes of their own to China. However, Apple’s contribution to U.S. based suppliers are beneficial for the country.
The goal of QuickPay is to reduce costs to small businesses to billions by reducing the amount of interest they paid out on loans taken for financing growth or continued manufacturing. Another goal would be to generates economic growth without having to rely on Congress.
Apple made a major investment in Arizona-based sapphire glass production company GT Advanced Technologies.